Fitch Ratings has praised the budget surplus reached by Malta in 2016, which “continues the fiscal improvement seen in recent years, which has been driven by robust economic growth”, a government statement said today.

Fitch said the government measures will enable Malta to reach a positive fiscal adjustment in 2017-18.

Fitch referred to several pension reforms that have been passed and that guarantees given to companies like Enemalta are set to be reduced.

Fitch said that the public debt/GDP ratio is on a downward trajectory u li economic growth will keep outperforming similarly-rated peers, the government statement said.

In reply, the Nationalist Party said that in its latest report on Malta’s economy and fiscal standing, the Credit Agency Fitch referred to Partit Nazzjonalista’s most recent pre-budget document dated October 2016 which “contained proposals for expansionary fiscal measures…coupled with reforms to contain public spending”. In view of these proposals, the Credit Rating Agency concluded that both main political parties share a broad commitment to fiscal responsibility.

This report contradicts recent claims made by Joseph Muscat that a new PN government will stall the economic progress. The only factor that is holding the economy back and putting jobs at risk is the uncertainty caused by corruption allegations and scandals involving Joseph Muscat and his closest aides. 

Joseph Muscat’s failure to act in an effective and expedite manner when faced with the undisputed facts that Konrad Mizzi and Keith Schembri opened secret financial structures in Panama and New Zealand irreparably damaged his government and is now seriously damaging Malta’s economy. Recent revelations of kickbacks and serious regulatory failings are putting further strains on Malta’s reputation and consequently the economy. Joseph Muscat is not and cannot be the solution in this scenario. He is the problem and should go now.