Finance Minister Edward Scicluna stands by decision not to carry out a mini budget – it would have ‘sent shocks’ through the economy.

 

Addressing a public consultation meeting themed ‘a government that listens’, Scicluna said the Commissioner would be tasked with investigating complaints raised by investors and disputes between investors and financial institutions.

The minister reiterated the stand against a mini budget, insisting that introducing one would shock the economy.

“The economy is doing well and the figures are positive,” Scicluna said. “In a week, the rate of unemployment went down by 52 persons.”

On Malta’s entry into the excessive deficit procedure, Scicluna said the government was committed to reduce the deficit under the 3% in line with the Maastricht criteria. He said, Commissioner for Economic Affairs Olli Rehn trusted the Maltese government in reducing the deficit.

“This is why the Commission did not impose spending cuts on us because we convinced it with out plan.”

Scicluna said the only way government could have avoided the EDP was by “hiding” figures. “Is this what the Opposition was suggesting? To repeat Greece’s mistakes and play around with figures,” he said.

Fielding questions from the public, Scicluna said the government would consider an MHRA request to reduce VAT from 7% to 5%. “But we still have to study this proposal and we will decide accordingly,” he said.

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– Monday, 17th June, 2013