The Minister for the Family and Social Solidarity has recently been quoted as saying that “The mentality of throwing millions at social problems without looking at the results and the root causes is not a very good idea”. Of course, no one would dare disagree with such a statement but, by itself, this does not delineate a new way of implementing social policy.
Being one of its basic tenets, solidarity has always impelled successive Nationalist governments to invest around half of the national budget in welfare and solidarity services. Nonetheless, it has to be said that often, even if not always the case, cash hand-outs alone are not the better solution. A ‘hand up’ – in the sense of giving people the support needed to help them through life or to recover from situations – is the preferred option. In this sense, the provision of free education to all with an economic model that has made this sustainable, together with the creation of job opportunities, has always been considered as the most concrete way of fighting poverty. It is certainly more effective than a violin mini-concerto to announce the beginning of the compilation of a national anti-poverty strategy. This is especially true when considering that a strategy was already in the making and that Labour, in Opposition, had declared it already had a road map to implement as soon as it won power to govern.
Five years of Nationalist government: a continuous increase in the number of those gainfully employed
Statistics may not be the most exciting subject around but they do give us an objective measure of performance. The latest news from the world of numbers is that during the Nationalist government’s last year in office the number of people gainfully employed increased by 3,300.
This, as I’ll never tire of pointing out, happened while everywhere else economies were shedding jobs. While other governments had to introduce draconian measures just to keep their heads above water, our economy was growing and creating jobs. Through smart incentives and the creation of an environment conducive for investment – cautiously and meticulously developed over the years – our country stood out as an example of good economic governance for others to follow.
Six months of Labour: a 9.5 per cent increase in unemployment
Six months into a new Labour government and what does it have to show for it when it comes to the economy? Nothing – as it has stayed complacent, enjoying the momentum that had been built in previous years.
It has done nothing and seems to be planning to do nothing very much. Except for pointed, partisan barbs, there was nothing in the President’s Speech at the opening of Parliament. The pre-budget document offers nothing tangible, apart from a promise for more child-care centres. And when the government forsakes making its intentions clear in such a strategically important political statement, you know it only intends to muddle along.
Doing nothing, however, is not an option, which is why the situation is slowly deteriorating. In July, the National Statistics Office reported that unemployment had increased by 9.5 per cent over the same period last year. We are slipping on imports and exports. Eurostat, the EU’s statistical agency, reported a decline of eight per cent in industrial production, the third highest in the EU after Greece and Ireland.
And now we have a downgrading from rating agency Fitch which, it said: “Reflected significant financial slippage”. The government’s commitment to fiscal consolidation and the claim that it will exit the EU’s excessive deficit procedure is not taken particularly seriously: Fitch’s report notes that there is “no clarity around the fiscal measures underpinning the adjustment”.