The Minister of Finance last week published the 2013 Pre-Budget Document, effectively giving a start to the Budget process that should ultimately receive approval sometime in December.

Unfortunately, the document was lost in the controversy we had regarding which political party has the better record in job creation. I would have thought this particular issue was a no brainer, if one were to simply allow facts to speak for themselves.

The document itself is built around the strategy of job creation and is expected to serve as part of the consultation initiative undertaken by the government prior to drawing up the Budget.

Last Wednesday’s editorial of The Times appeared to have taken the cue from the Pre-Budget Document and highlighted the fact that Malta can expect a tough time ahead if it is to keep to the deficit reduction targets. It spoke of the optimism (albeit cautious optimism) expressed by the Minister of Finance Tonio Fenech, in the face of the difficulties Malta is facing and in the light of a slowdown in the world’s leading economies.

The Times editorial does not see this to be a problem as long as we stick to the plan that had been set out last year. I believe the concluding sentence of the editorial says it all: “The real problem would arise if and when the island gets derailed again.”

This brings me back to the Pre-Budget Document, which starts to give an inkling of the government’s macro-economic strategy for 2013. It has three very definite thrusts – the economy, the family and the environment.

However, there is the recognition in the document that sound public finances are an essential link to investment and better jobs.

For this reason, the government speaks of its commitment to achieve a balanced structural budget in the medium term, in line with the rules of the Stability and Growth Pact.

The strategy to achieve economic growth is underpinned by a structured programme of support for private enterprise. The country will continue to seek to attract foreign investment, an element that has contributed greatly to our economy since Independence in 1964.

However, it will also seek to enable the expansion of existing enterprises. In fact, an element I find crucial in the Pre-Budget Document is, that it speaks of the need to support the manufacturing activities already established in Malta.

The document describes these activities as traditional – however, not in a negative sense as in “obsolete” but in a positive sense as in “long lasting”.

The influx of new investment coming from a mix of first-time investors and investors that have been here for quite some time will help to generate sustainable employment which is, after all, the government’s top priority.

Another very important aspect in supporting private enterprise is by easing access to finance. A number of initiatives have already been launched in this area through tax incentives, loan guarantees, interest rate subsidies, etc. As bankers become more cautious because of the very difficult international economic scenario, the government needs to ensure that businesses are not choked because of a lack of that very important factor of production: capital.

The enablers of economic growth shall continue to be education, protection of the environment and a sustainable welfare system. In this regard, I strongly believe we may have to take some bold decisions in the coming three years. We need to make a serious analysis of whether we should extend compulsory education by a further year or two.

This is required not to have more of the same but to make sure that all persons finishing compulsory education are in possession of qualifications that would enhance their employability. We do not need to extend the school-leaving age to have more PhDs but to make sure that even our manual workers are appropriately qualified.

We will also need to be confident enough, as a country, to assess whether the retirement age should be tied to life expectancy.

We must appreciate that the most successful economy in Europe (Germany) has a retirement age of 67 years.

I do understand this can be a very emotional issue but we cannot throw it under the carpet. We must also take a bold step and seek to make the Maltese economy as “green” as possible.

There is now ample evidence that a “green” economy creates jobs if managed appropriately.

To a very great extent, I tend to share the Finance Minister’s cautious optimism about our economy.

I believe we are facing some challenging times but they are full of so many opportunities that, given the right policies, we should be able to weather the storm and thrive.