The Leader of the Partit Laburista, Joseph Muscat said in reaction to Malta’s ratings downgrade by the credit agency Standard & Poor’s, “that in view of the Standard & Poor’s downgrade of Malta’s ratings, it is now more fundamental than ever the need to implement the PL’s plan for economic growth that reaches everyone, and to urgently address the Enemalta situation so that it recovers rather than go down and drag the whole country down with it. “

Joseph Muscat stated that the only way out of this vicious circle was through a change in direction which would incentivise economic growth. He affirmed that in the next weeks, the Partit Laburista will keep on making concrete proposals with the scope of achieving an economic growth which would reach everyone.

Joseph Muscat also said, “what Standard & Poor’s has stated, reinforces the urgent need to address the current state of Enemalta.” He stated that the Enemalta situation is no longer sustainable and it is a recipe for failure which should be a cause for concern not only for the employees and their families, but for all economic operators of the country.

The PL Leader warned that “the country cannot wait any further and urgent solutions need to be found. There are no more excuses, now we have a clear warning from international agencies that if we do not save Enemalta, it will go down and drag down the country with it.”

Joseph Muscat declared that “whilst the Government was proposing to maintain the status quo, the PL has a clear plan, which in collaboration with the private sector, will improve Enemalta’s standing.”

The PL Leader went on by saying that “whilst out in the streets PN is boasting that the finances are stable and secure, international experts are not believing these statements. Government’s and Minister Tonio Fenech’s track record demonstrates one failure after the other.

“In their report, Standard & Poor’s gave various reasons for downgrading our country’s ratings. Amongst these Malta’s debt burden was mentioned.” Joseph Muscat affirmed that “the PL has been pointing out the debt issue to Government for a number of years, but both the Prime Minister and Minister Tonio Fenech tried to downplay the importance of this indicator.”

“This Prime Minister was responsible for 40% of the debt accumulated by our country ever since Malta obtained the Independence,” Dr Muscat said.

He continued by saying, “another reason given by Standard & Poor’s is the continuous losses made by Government enterprises and the fact that Government has to shoulder that responsibility through guarantees. Enemalta is highlighted specifically and identified as ‘an ailing energy utility’.”

“Moreover, another reason given was the lack of women’s participation in the labour market. The PL has been emphasizing this issue for a long time.” Joseph Muscat stated that the PL has a clear plan to stimulate women’s participation in the labour market, and pointed out how this can be the solution for the pensions problem.

“Standard & Poor’s also mentioned the fragility of our economy if this will go on depending on a small number of sectors.” “Thus”, affirmed Muscat, “there is the need for diversification. This means that there is still place for the manufacturing sector in our country.”

Finally private debt was also mentioned, an issue which was also remarked upon by the IMF. Joseph Muscat stated that the lack of money was being caused by “government induced cost, in particular, by the high utility bills.”

The PL leader described PN’s reaction as “a puerile declaration of a Government in panic, who saw his own propaganda’s bubble burst by international experts.” Joseph Muscat stated that it is “Government’s responsibility to see that the Budget goes through and also asked whether the PN was going to vote in favour of the Budget, if the people would eventually give their trust to the Labour Movement.”

Muscat also added that since “the Prime Minister knew since summer that the Budget would not go through, he should have taken all the required measures. Instead he chose to prolong and decided to embark on the longest electoral campaign. A few months ago, the Prime Minister was saying that if the Budget did not go through, nothing would have happened. Now we are seeing the results of that. Because of these wrong choices made by PN, the whole country is suffering.

Joseph Muscat noted how the only indirect reference to the PL in the report was “a positive reference to the strength of political institutions in the country.” He maintained that the PL was mentioned in a positive manner, not as Tonio Fenech stated. This also combines with Fitch statements which asserted that there was no risk to the country’s stability because the PL was going to implement the Budget measures.”

The PL leader also noted how Standard & Poor’s “are not believing Government’s projections for the year which has just ended despite the fact that Government had stated that the deficit would be 2.2%, it appears that this is much closer to the 3% mark.”

“Standard & Poor’s statements are not surprising,” stated Joseph Muscat. “This due to the fact that the PL has long been pointing out the issues mentioned in the report. He stated that whilst he is aware that the responsibility that the Movement is going to be shouldering is huge, the Movement is full of hope that the situation can be improved and the country can move forward.”

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