2010: Year of recovery that brings hope

Compared to a dismal 2009, last year was a year of recovery that should fill us with hope for the new year.

Following a year of economic decline, growth has returned to positive ground with a healthy increase along with encouraging figures for other key indicators. In particular, our public deficit is being reined in, inflation remains under control and Malta registers one of the lowest unemployment rates in the entire EU.

And among the individual sectors, tourism has led the way with a bumper year that exceeded even the 2008 records with an impressive growth that should turn all neighbouring destinations green with envy. Malta’s performance was even more remarkable if one considers it took place in a context that was far from ideal.

The wider economic climate in which we operate, both at a European and world level, is still fraught with difficulties with many European countries just about hobbling out of recession. Thankfully, Germany bucked the trend by registering a healthy growth based on its strong competitiveness. And the credibility of the euro was called into question with repeated attacks in the markets triggered by the failings of Greece and Ireland.

But, despite the onslaught, it is fair to say that our currency has shown significant resilience in the face of the most severe test to its existence since its inception. And, of course, without the euro, instability would have been worse.

As it happens, Estonia’s entry into the eurozone this week is symbolic if only because it bolsters somewhat the shaken confidence and reassures that the euro is here to stay. Cause for jubilation for us? Definitely not. But there is good reason for cautious optimism.

And there is also room for some relief that our economy is being steered competently by a government that has sound economic policies and a clear political direction.

Indeed, hardly anyone faults the government’s performance on the economic front. Not even the opposition, which has been conspicuously silent in its criticism on this front, providing further evidence the economy is in safe hands. Instead, it trained its political guns on two single, but related, issues that have now occupied the best part of its new leader’s term of office.

The first is the hike in water and electricity bills which, almost two years on, still remain a top favourite for the opposition because the issue strikes a chord with all utility users. Let’s face it, no one likes paying steeper bills. But my feeling is this issue may yet boomerang against the opposition. Because even if people need to vent their frustration against someone – and a government is always an ideal candidate for all our gripes – more and more people now realise that bills must somehow reflect the cost of the fuel we need to fire up our power stations. Consequently, those who rile against higher bills are either opportunistic or simply out of synch with reality. Or both.

Not only but there is more than a whiff of hypocrisy in the opposition’s claims because the collapse of the last Labour government over none other than the water and electricity bills is still present in our collective memory. So, by now everyone knows that, even with a Labour government, the bills would either stay the same or we would pay for them through some other taxes. And that’s the best-case-scenario.

The second is a spin-off of the same issue, namely the BWSC debacle. On this score, whereas the corruption charges appear to have now fallen flat on their face, one cannot say the matter was handled properly. And the whole thing was a text-book case of a public relations disaster. It is precisely on this wave of popular disenchantment the opposition has ridden.

It is a pity that in all this brouhaha, the vital importance of urgently increasing our electricity supply – hence the project – was all but lost. Without this darned extension of the Delimara power station we would have to stick with the Marsa plant and pay the price through poorer air quality and fines for failing our emission tests. But, crucially, we would also seriously prejudice our economic growth.

If this simple message had got through, the opposition would have, yet again, found itself on the wrong side of the argument. Conversely, it would be a great pity if a government proving to be competent in running the economy allows itself to lose crucial points on these issues.

Let us hope the new year will focus minds and get some people back to their drawing board. Perhaps the spring 2013 election target beginning to loom ahead on the horizon will help us do just that.

www.simonbusuttil.eu

Dr Busuttil is a Nationalist member of the European Parliament.