EU report 'confirms' government's failures

The fact that the EU Commission has found that Malta fails in four out of five convergence criteria that must be met before it can join the euro confirms once again the government's inability to address the country's problems, the Labour Party's...

The fact that the EU Commission has found that Malta fails in four out of five convergence criteria that must be met before it can join the euro confirms once again the government's inability to address the country's problems, the Labour Party's spokesman on finance and economic affairs Charles Mangion said yesterday.

Dr Mangion said the EU Commission had "condemned" Malta for the lack of price stability and the high rate of inflation. This was primarily triggered by the hike in VAT to 18 per cent and by the introduction of an eco tax.

Another factor criticised by the EU Commission, Dr Mangion added, was the level of the national debt and the deficit.

In spite of the fact that every taxpayer was today paying Lm1.55 for every Lm1 taxpayers were contributing six years ago, the national debt is greater than Lm1.3 billion and the deficit is close to seven per cent of the GDP, Dr Mangion added.

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