New Life New Hope

The Malta Independent on Sunday

New Life, New Hope

Easter is the source of new life. It is the victory of life over death.` It brings renewed hope` where everything seemed lost.

Every Easter is special. We leave behind the dull winter days and smile in` light, fresh air and hope from the myriad of colours which spring gardens to life. This Easter is even more special as it falls on the second birthday of my little girl, a special gift I never thought I would have at my mature age after a string of boys.

Looking at my little two year old gives me all the reasons why I should look at life more confidently. Why I should emphasise the solutions without belittling the problems.

I do not repent any of my contributions where I have been extremely critical of the way we are trying to work our way out of the economic crisis that is deepening. The situation is serious also because our economy is way out line from` the bullish results being generated by our trading partners in the US, UK, Continental Europe and the Far East. The economies of major countries with whom we conduct our trade are booming and their concern is about over-heating.` Recent interest rate hikes and others prospected bear proof of this. These countries are reaping the benefits of the great sacrifices and national efforts made to modernise , liberalise and sanitise their economy over the last few years.`

Spain and Greece are two countries that `recently have confirmed their incumbent government in office. A vote of confidence for` extracting their country from the high inflation,` structural deficit loop to sustainable economic growth which is creating new jobs and` restoring maneuverability to fiscal policy.

In both countries Governments were elected with clear electoral manifestos to deliver the necessary reforms and could therefore demand and obtain unions agreement to undertake the necessary re-structuring. In each case the transition pain was not under-estimated but the benefit of the end-result was continuously kept in focus to ensure that the pain was rendered bearable by the prospect of the prize at the end of the dark tunnel.

Our country is in the fifth consecutive year of under-performance growth and excessive fiscal deficit. It is overdue that the electorate raises its maturity above the level of crass gullibility and demand from our political leaders either delivery of the electoral programme which was voted for,` or a referral for electoral endorsement of a new manifesto which is based on current and acknowledged problematic scenario.

The general feeling growing in the country at large is that the government will have an impossible task to present a budget for 2001 with huge financial commitments emerging from the civil service collective agreements and the economy not producing increased tax revenues through growth.

Whether it likes it or not government is boxing itself into a corner of having to choose from further tax increases, irresponsible crisis privatisations or serious over-shooting of an already precarious budgetary position.

Easter optimism should propose a better management to our economic ills. We deserve a` government that seeks a realistic medium term mandate to deliver true solutions. We can then do what Greece and Spain have done these last few years. We can modernise the economy, liberate it from the excessive unproductive recurring expenditure which is draining its life blood of investment funds, attract new massive direct productive` investment, and create new jobs with a faster tempo than that with which re-structuring destroys the old fictitious ones.

We have to ensure that the burden of re-structuring is equitably spread even on those who remain in employment and not only by those who are rendered `unemployed. We must ensure that gradually, without causing disruptive shocks, a culture of fiscal morality is rooted by restoring fiscal agility permitting` reduction` of the general direct tax impact rates to reduce further the incentive to cheat and stimulate the incentive to invest.

Easter optimism tells me we can do it faster and better than the Greeks and the Spaniards. All we need is real leadership that will not promise us heaven when they mean purgatory. Leadership that takes us into its confidence that we are able to solve our problems without needing big daddy to show us the stick.` Leadership that can make Easter confidence and optimism a permanent part our life.