In total contrast to past years, this year the Malta government should not find it difficult to satisfy in its budget for 2016, obligations arising under the Stability and Growth Pact as contracted within the euro zone. The Pact sets constraints on government finances, to prevent outgo from exceeding income beyond a certain measure.
More than once, Malta was brought to order on this matter and was directed by Brussels to take corrective action.
The current rates of economic growth should totally rule out a rerun of this scenario. Which should give rise to great satisfaction among one and all.
However, the truth is that the eurozone’s methods by which to maintain financial equilibrium and avoid another crisis, are still quite primitive. I am again now having to recognize this state of affairs, in my role as shadow rapporteur for the socialist and democratic group in the European Parliament on a resolution that is being drafted regarding the European Commission’s recommendations to members of the euro zone about their 2015 budgets and their economic situation.
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Malta Business Bureau
I had a very useful meeting with representatives of the Malta Business Bureau (MBB). We discussed developments related to the tax treatment of profits made by big companies among member states of the European Union.
The MBB is a unit set up by the Chamber of Commerce and the MHRA, an association which groups tourism operators. It monitors EU developments that could have a negative or positive impact on Maltese business. As I listened to what was being said, I realised that the MBB is diligently carrying out its assignment.
Our discussion revolved mainly around proposals now being presented in European institutions for EU countries to adopt as much as possible the same procedures by which to measure profits according to company accounts. This would help to counter attempts by big, so-called multinational companies, to avoid having to pay taxes due on their profits.
Regarding this objective, one can hardly dissent. But if such measures are envisaged as a step towards the introduction of the same tax structures in all European countries, then it cannot be seen as going in the right direction from the point of view of the Maltese economy and of our private sector.
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Tony Zarb
Tony Zarb was general secretary of the General Workers Union during a period when the going was hard for trade unions, in Malta and Europe. They had to face a huge economic recession plus a direct threat to their very existence within European societies.
Confronted with such challenges, Zarb performed creditably, not least with his courageous and active stand against precarious employment. Under his leadership, the GWU kept up its consistent efforts to project the interests of workers in Malta and Gozo.
It did not always win. Even when it lost though, it continued to signal that it would never fail to do all that needed to be done to enhance workers’ rights.
The near future will not bring much change in the challenges facing unions. Nourished by neo-liberal principles, globalisation will continue to undermine the foundations that unions were built on.