The standard of English in this country leaves much to be desired.  This year, some 23% of students sitting for their MATSEC exams in English failed.  Only 41% of those sitting for an 'A' level SEC in English got grades in the A-C range, while 59% got grades ranging between D-F.  Among those sitting for an Intermediate level SEC 45% got grades between A-D, while 55% were classified between D-F.  (I have excluded those who were absent, most of whom wouldn't have gone for the exam because they had lost hope.)

In a world where English rules and where access to knowledge depends on a good understanding of English, this is deplorable.  A Press Release from the Education Ministry congratulated itself on the MATSEC results as a whole.  While in some sectors this was in order, in others it is a parody of the reality.

Some educationalists blame the poor results, which by the way are worse in Maltese, on a lack of reading.  Lack of reading does not simply reflect itself in poor results in written English, but even worse in a failure to acquire knowledge in other subjects.  I cannot imagine that somebody can learn chemistry well if he or she cannot understand a science book properly.

It doesn't help when both students and other people read badly written English in the media.  Forget the atrocious English on Facebook and other social media, but nowadays even the mainstream media are slipping badly.  For example, a recent headline in a daily newspaper had a headline that the Minister of Finance had hinted at a super bonus "forfeiture." 

Naturally, he did no such thing.  According to my well-worn dictionary, the word "forfeited" means to give up or lose the right to something as a penalty for breaking a rule, law, or contract.  Now, nobody who voted in the recent general election acquired any right to a super bonus.  You can call it an electoral commitment by the party which made it, but certainly not a right.  One cannot sue the government if it were to abandon the commitment, though it would surely have to pay a penalty in the court of public opinion or even in the next election.

What Minister Clyde Caruana had said was that, like any other electoral manifesto proposal, that of the super bonus could be implemented over five years.  He didn't even hint at an abandonment; he only said that his immediate priority was to safeguard the country from high energy prices and to safeguard public finances.

When words lose their precise meaning, the outcome is that public discourse is degraded, miscommunication increases, and shared societal truths can be eroded.  Political spin, of which there was a lot after the Minister talked about this, immediately kicked in.  Pragmatic manipulation was even worse, turning an objective fact into a half-truth at best, a direct lie at worst.

Does it matter?  Definitely.  As the philosopher Confucius noted, when words lose their meaning, people lose the shared definitions required to hold power accountable and protect their freedom.  Moreover, buzzwords and extreme rhetoric replace rational debate with emotional manipulation, creating an "us versus them" societal divide. 

Warding off uncertainty

Speaking at the PL's annual conference recently, Deputy Prime Minister and Deputy Leader for Parliamentary Affairs Ian Borg referred to the impact that uncertainty could have on the country.  Dr Borg said that, while people have confidence in the country's future, geopolitical challenges can lead to uncertainty.

Indeed, uncertainty has become a defining characteristic of the global economy as geo-economic shifts and geopolitical tensions upend long-held economic assumptions.  No wonder that Marion Laboure, Managing Director and Macro Strategist at Deutsche Bank, has called uncertainty "the biggest driver that we're looking at now."

Economists often quote tangible indicators like inflation rates and gross domestic product (GDP) growth to describe what is happening in the economy.  But they are also very much aware that uncertainty clouds many of the hard statistics.  The problem is that uncertainty is inherently abstract and can only be measured indirectly though proxy data such as surveys and sentiment analyses, which are rather subjective.

The Central Bank of Malta does this through its Economic Policy Uncertainty Index, its latest score relating to last January when it read 210.753.   This was the highest score during the previous 12-month period and a huge jump from the previous January's score of 64.46.  

No doubt, this explains why the Bank's Business Conditions Index indicated that in March, annual growth in business activity remained above its long-term average.  Furthermore, the European Commission's Economic Uncertainty Indicator reported in its spring forecast dropped significantly, signalling strong predictability among managers and consumers.  In fact, total economic sentiment was roughly 14.8% higher than Malta's historical average.

The thing, though, is that uncertainty in Malta can be conditioned by uncertainty elsewhere.  This is because, as Nela Richardson, the Chief Economist of ADP Research, told a World Economic Forum event, "Uncertainty has become its own economic actor and it's influencing all kinds of decisions."  

The more unpredictable the situation is, the less businessmen can stick to their business plans, let alone have a long- term plan.  In a world where the U.S.A. has ripped up the international rules-based trade system, governments and businesses often have to navigate highly uncertain waters.

It was therefore good that both the Prime Minister and his Deputy tried to reassure people subsequent to warnings given by the Minister of Finance about the impact of higher fuel subsidies on the government's finances.  No doubt, Minister Caruana's warnings were meant to lower expectations about the upcoming budget, but words can sometimes carry weight well beyond their immediate moment

No farce

The Planning Authority is probably the most hated public authority in Malta. I am convinced that, in any survey of the perception of authorities in Malta, the PA would get top prize for lack of transparency, corruption, and dereliction of its public duties.

The latest public outcry concerns the setting up of a huge awning and enclosed space in front of Carlo Stivala's Piccolo Padre restaurant at the Centric Hotel on The Strand.  Stivala appropriated a public space, restricted pedestrian accessibility, and endangered road safety.  There was nothing "piccolo" about the structure, but it was very much central. 

Subsequent to various social media posts, Moviment Graffiti took up the cudgels on behalf of the public.  The PA then issued an enforcement notice requiring the removal of the structure within one week from its installation. Moviment Graffiti immediately branded the notice as "farcical," pointing out that the development was already being used commercially.

Such instances are typical of the PA's abdication of its public duties in its blind rush to approve "development" and accommodate businessmen. It is probable that Stivala, after having received a slight slap on his wrist, will get what he wants, as he usually does.

It is no farce, as Graffiti have described the incident.  More like another smudge on the PA's reputation: not that Buttigieg and his masters care about that.

EU Budget woes

Negotiations on the EU's Multiannual Financial Framework (MFF) are always preceded by tough negotiations between the member states, the European Parliament, and the European Commission.  The proposed budget for the years 2028-2034 is no exception.  Everybody has his favourite projects and special interests to protect, but the pork pie is never big enough.

The negotiations on the next iteration of the MFF are complicated by several factors, not least the resources the EU needs to allocate to a considerable expansion of its defences subsequent to Russia's invasion of Ukraine, Russia's threats against the bloc and its NATO partners, and the unwillingness of the USA to continue extending its security umbrella to Europe.  Billions of euros will have to be spent for several years if Europe is to stand on its own two feet if attacked. The problem is that it is not clear where these billions will come from when the EU's economic growth remains anaemic.

The situation presents a golden opportunity for the EU's so-called Frugal Five   ̶    Austria, Denmark, The Netherlands, Sweden, and Finland   ̶   to renew their insistence on strict fiscal conservatism and opposition to large central budgets.  Germany often joins the group, to make it six.

The Frugal Five do not much like redistributing their money to spending packages enjoyed by other countries.  They believe that their net contributions to the EU budget are already too big, so they should get financial discounts or rebates.  Their excuse is that only strict adherence to eurozone deficit and debt limits can save the Union from going belly up.  In fact, the idea of EU joint debt, such as Eurobonds, is anathema to them.

I cannot remember a budget cycle where there hasn't been a call by these countries for a re-set of the Common Agricultural Policy (CAP), which accounts for approximately 25% to 38% of the total financial framework, depending on whether recovery funds are included. In the 2021-2027 Allocation, CAP absorbed over €386 billion. 

This time it is not different. Sixteen of the EU's members, including Malta, recently signed a declaration which argued that spending on new priorities, including defence and energy security, must preserve support for established policies such as the Cohesion Policy and the CAP.  It is difficult to understand Malta's appeal to preserve the CAP, which is a cash-cow for a group of six countries which literally milk it for what it's worth. 

Our share of the CAP is roughly 0.03%-0.04%, or some €166 million, in direct EU contributions and national co-financing.  This tiny allocation is due to our highly limited, fragmented agricultural lands.  Rather than arguing for preserving the CAP, we should be insisting on a floor below which our farming funding should not go and on special treatment of our agricultural sector.

Quote of the Week

"It was absolute mayhem," Joan Sheridan, a tour guide describing the situation on Monday, when large crowds from several cruise ships visited the Upper Barrakka Gardens to watch the traditional cannon firing from the Saluting Battery.