Labour MEP Prof. Edward Scicluna said in a statement issued on Saturday, September 17, 2011, that the government’s attempts to blame the credit rating downgrade by Moody’s solely on the eurozone crisis had been flatly refuted by the agency’s report on Malta’s economy.
Commenting, Prof Scicluna said:
“The government’s apologetic response to Moody’s downgrade is that this is the automatic response to the eurozone crisis rather than a judgement on Malta’s economic performance. The problem is simply a revenue shortfall that can be solved simply by collecting more taxes.”
“A reading of the Moody’s report shows that it explicitly refutes the government’s explanation. Although Moody’s agrees that the crisis has hit a number of countries, not every country has been hit in the same manner. Moody’s points out that Estonia will keep its A1 credit rating. The same is true for the Czech Republic.”
“The crisis has resulted in rating downgrades only for countries that were economically weak or had to provide life-support for their banks.”
Adding that weak growth forecasts and low investment meant that it would be difficult for Malta to win back the coveted A1 credit rating Prof Scicluna said:
“Even if the crisis ended tomorrow, and demand for Malta’s exports and services went up, the IMF estimates that the maximum growth rate we could achieve is 2 per cent. The reason for this is the very low level of investment which falls well short of the level required for an A1 country.
“Moody’s also notes that Malta’s projected low economic growth in the medium-term future will not lead to a debt reduction significant enough to win back its A1 status.”
ENDS
Ir-Rapport ta’ Moody’s jirrifjuta l-interpretazzjoni tal-Gvern
– Prof. Edward Scicluna
L-Ewroparlamentari Laburista l-Professur Edward Scicluna jsostni li r-Rapport ta’ Moody’s jirrifjuta l-interpretazzjoni li qed jaghti l-Gvern lid-downgrade li Moody’s ghadhom kemm taw lid-dejn tal-Gvern Malti. L-apologija tal-Gvern hija li Moody’s taw id-downgrade kwazi awtomatikament ghax Malta hija membru taz-Zona Ewro u mhix xi gudizzju fuq it-tkabbir ekonomiku ta’ pajjizna.
“Ghall-Gvern il-problema hi sempliciment kwistjoni ta’ tnaqqis zghir tad-deficit, u jekk dan isir il-problema hija solvuta. Dan mhux il-kaz. Min jaqra r-Rapport ta’ Moody’s isib li dawn iz-zewg tezijiet huma rrifjutati esplicitament,” qal fi stqarrija Prof. Scicluna
“ L-ewwel: Moody’s jghidu li ghalkemm li l-krizi taz-Zona Ewro laqtet hafna pajjizi fl-Unjoni Ewropea mhux kull pajjiz intlaqghat l-istess. Hekk per ezempju l-Estonia, li hija membru taz-Zona Ewro mhux se titlef l-A1 status taghha. Lanqas r-Repubblika Ceka, li hija membru tal-Unjoni Ewropea u li qeghda fil-klassi ta’ A1, lanqas m’hi se tigi downgraded bhal Malta. Il-krizi waqqghet biss dawk il-pajjizi li jew kienu dghajfa jew li kellhom jghinu bil-kbir lil banek ta’ pajjizhom,” qal l-Ewroparlamentari Laburista Scicluna.
Huwa zied jghid li mbaghad hemm il-punt li Moody’s jghidu li t-tkabbir kajman tal-ekonomija Maltija ghall-futur ma jghinx biex id-dejn bhala percentwal tal-Prodott Gross Domestiku jonqos u jsir bhal ta’ dawk ta’ pajjizi li huma fil-klassi ta’ A1.
“Anke kieku kellha tieqaf il-krizi u tikber id-domanda ghal prodotti u servizzi ta’ pajjizna, il-potenzjal massimu ta’ tkabbir stmat mill-Fond Monetarju Internazzjonali hu biss ta’ 2% fis-sena. Dan ghax l-investiment f’pajjizna huwa baxx hafna u ma jikkomparax ma ta’ dawk il-pajjizi fil-klassi ta’ A1,” temm jghid fl-istqarrija tieghu Prof. Scicluna.