People who like me, no longer spend time in Valletta, will immediately, once they visit, realize that the city’s character has changed. It isn’t any more the city of the sixties and seventies decades of the past century – especially if one considers the area between the two main entry points of City gate and Castille, and the President’s palace.

It hardly makes sense to ask whether the change of character is good or bad: change reflects the zeitgeist as generationsadopt different tastes and values. Also, changes take place slowly, not all at once. Then comes the moment when with their cumulative effect, it becomes evident that the whole complex has undergone a radical change.

Today’s format provides wider spaces for light and movement, a heightened feeling of relaxation, establishments that are more open to outsiders looking in.

A development I dislike is probably quite pleasing to most others: one misses the “popular” bustle of a Maltese crowd, not caused to be sure by the bulge in tourism. You could be in any other old, smallish, provincial city in Belgium or France. However one cannot blame this on the City’s change of character, as much as on the attitudes and customs brought over by globalised trade.    

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Capital vs recurrent

A public debate about present and future trends in public expenditure, differentiating between capital and recurrent flows, would be worthwhile. Too often, current outlays carry forward the thrust in public expenditure while investment commitments are allowed to decline.

In past years, public investment here has not decreased, due mainly to the arrival of project funds from the EU which always bunch towards the end of a five year preparatory period or close to that, and various other one-off investments by government.

There is a strategic national interest in the balance that is planned between the two major heads of spending. It is true that information that is published about this, affords space at a later stage for political criticism when some target or other is missed. But that is in the nature of democracy.

In Europe today, the levels of public investment have dropped significantly. A proper debate about the reasons why is overdue.  

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Uunder/over valued?

As it applies to the Maltese economy, is the euro under or over valued?

There is no way we can influence the euro’s rate of exchange although it is the currency we use. However it would be useful to know how in prevailing circumstances, its value is affecting our competitiveness.

Available statistics seem to be giving mixed pointers.

Price indices show that generally, inflation here is higher than the European average, which could mean that given the Maltese economic context, the euro is undervalued.

On the other hand, a look at industrial production indicators might lead to the conclusion that the euro is trending on the high side.

Meanwhile tourism indicators can be of little help in this area, since the sector is benefitting greatly from the misfortunes of our Mediterranean competitors.