Friday, 30 March 2001

Moving trees

The Malta Independent

Moving trees

One of my earliest memories of childhood is sitting on a travelling bus on a seat back to back with that of the driver`s and my elder brother pointing out` jokingly that the trees which were lining the road were in fact moving while we were standing still on the bus.

This memory was flashed back to me last Sunday hearing the Prime Minister`s concluding address to the PN`s general assembly. He said that Labour`s Alfred Sant was gradually making a U-turn in its attitude against EU membership. He said Dr Sant`s objections to EU membership were exactly on the same as those areas which his government was negotiating upon. These include such basic matters as free trade in agriculture and free movement of people and capital.

Reality is that the Prime Minister in shifting his position is being illusioned that it is the trees lining the road that are moving rather than himself riding on the` EU bus leading to nowhere.

The EU has been making it crystal clear that whilst it is prepared to make concessions by way of long transition periods in matters related to environment adherence to the` acquis communitaire, it sees no scope for long transition periods on the single market concept, let alone permanent derogations from the four freedoms of trade, services, people and capital which underpin such single market.

As the EU bus starts approaching negotiations on the chapters that matter and as the predictions I had made in a book I published in 1999 on the EU start materialising (that support for the EU will be missing when it really matters as people would equate sharp shock adjustment pain to EU impositions so that EU will be rejected for the wrong reasons) the Prime Minister has found it convenient to make stark revelations as if they were last year`s news.

The fact that the principal areas of Labour`s objections to membership are also government`s own objections so much so that government is seeking permanent derogations therefrom,` would indicate by implication that if the EU refuse to budge the government itself would abandon the EU project. In such a case it would be the Prime Minister moving bus that makes the U-turn rather than Labour`s trees lining the road to a special relationship with the EU.

The Prime Minister`s fatal mistake in this matter is that he has been approaching the EU project as a matter of faith not reason. The ultimate objective is not the type of relationship Malta should have with the EU, membership or special relationship, but that whatever relationship is chosen offers the best prospects for sustainable economic development. Finally we seem to have agreement between our two political schools that this relationship has to cater specifically for Malta`s agriculture sector and also to protect Malta from excessive freedom in the right of foreigners to buy property in Malta and to compete with locals for job opportunities. Presumably the two schools also respect the constitutionally enforced agreement on Malta`s neutrality and non-alignment.

So having finally been forced by the circumstances of the last local elections to this broad agreement, who is the most realistic` Alfred Sant who expects to reach these objectives by negotiating in the framework of a special relationship,` or Dr Fenech Adami who deaf to the EU regular pronouncements that membership is not available a la carte,` is now ordering it in the style of grand buffet.

Sunday, 25 March 2001

Contradictions

The Malta Independent on Sunday

Contradictions

The editorial of The Malta Independent on Sunday last week was a masterpiece in contradiction.

The editorship of this so-called independent newspaper made the cool declaration that it `would like to see this government re-elected principally because the opposition Labour Party is against EU membership`. The independence of this newspaper proclaimed in its title is sacrificed on the alter of the EU which this newspaper considers as the be all and end all, an ultimate objective per se. Not merely as a means to lead to the final end of giving the citizens of this nation a sustainable prosperity within the context of our nationhood, sovereignty and constitutional` neutrality, but an end in itself whatever it takes to get there.

For the editorship of this newspaper the PN should be re-elected no matter how much they mismanage, no matter how many tax millions they burn, no matter how much corruption taints the executive,` for as long as the MLP sticks to its policy of Switzerland in the Mediterranean. What a poor definition of independence!

But the contradictions do not end there. The policy for joining the EU in full membership as early as possible is the major impediment for the re-election possibilities of the current administration.` The two cannot co-exist.

The first signal was given in the local election results.` The PN demanded a vote of confirmation of their national policies which are all pinned on to the mast of early accession into the EU. In the right direction slogan clearly was meant to signify early arrival at the EU membership destination.

The verdict is unmistakable. A wide sample of one-third of the population, if anything more biased towards pro-PN regions and localities, have placed the PN in a distinct minority.` And all this in spite of the bounce back which the PN fortunes had through the mishandling of the La Salle issue by the Drydocks Section of the GWU which gave the Prime Minister an opportunity to enjoy a rare short instance of perceived strong` leadership.` No doubt some residual benefits of this La Salle bounce back benefitted the PN vote in the local elections but, failing more gaffes from the Labour /GWU side, it will be completely exhausted in future elections.

The message was however not lost on the Prime Minister.` Knowing that government present position is unsustainable the Prime Minister was forced to dig himself into further contradictions.`

In a direct TV debate with the Leader of the Opposition the Prime Minister acknowledged, for the first time may I add,` that Switzerland in the Mediterranean policy, is a sensible and adaptable policy for Malta but he went on to add that his government can obtain the necessary derogations from the EU to be able to achieve the benefits of Switzerland in the Mediterranean within a framework of EU membership.

Can you believe it` Those who were accusing Labour for promoting an unrealistic a la carte solution outside the membership option have lost so much room for manoeuvring` that they are now shamelessly contradicting themselves in `proposing `unrealistically to turn EU membership from a set menu into a lavish buffet display.

So according to our Prime Minister the EU will be accepting derogations which would permit us to buy our basic food at international world price and not at higher internal EU prices.` The EU will be allowing us to restrict property purchases by other EU nationals to one single property unit for own use.` And whilst our citizens will have all the freedom to work wherever they will in other EU states,` we will be given the right to restrict access of other EU nationals to our domestic` labour market.

The EU will be allowing us to retain our status of active neutrality and we will not be forced to follow any present or future initiatives to align our foreign and defence policies to the central objectives designed in Brussels.

Now any elementary student who has even a remote following of developments of the enlargement project of the EU knows that this is day-dreaming at its best. Regular pronouncements from Brussels unmistakably point that permanent derogations from the acquis communitaire are out the question and transitory provisions will only be considered exceptionally, for short periods and in very small quantities which do not offend the single market concept.

Continuing to tie itself in self-destruct contradictions will inevitably lead this government to obvious results of which the last local elections was just a fore-taste.

Contradictions

The Malta Independent on Sunday

Contradictions

The editorial of The Malta Independent on Sunday last week was a masterpiece in contradiction.

The editorship of this so-called independent newspaper made the cool declaration that it `would like to see this government re-elected principally because the opposition Labour Party is against EU membership`. The independence of this newspaper proclaimed in its title is sacrificed on the alter of the EU which this newspaper considers as the be all and end all, an ultimate objective per se. Not merely as a means to lead to the final end of giving the citizens of this nation a sustainable prosperity within the context of our nationhood, sovereignty and constitutional` neutrality, but an end in itself whatever it takes to get there.

For the editorship of this newspaper the PN should be re-elected no matter how much they mismanage, no matter how many tax millions they burn, no matter how much corruption taints the executive,` for as long as the MLP sticks to its policy of Switzerland in the Mediterranean. What a poor definition of independence!

But the contradictions do not end there. The policy for joining the EU in full membership as early as possible is the major impediment for the re-election possibilities of the current administration.` The two cannot co-exist.

The first signal was given in the local election results.` The PN demanded a vote of confirmation of their national policies which are all pinned on to the mast of early accession into the EU. In the right direction slogan clearly was meant to signify early arrival at the EU membership destination.

The verdict is unmistakable. A wide sample of one-third of the population, if anything more biased towards pro-PN regions and localities, have placed the PN in a distinct minority.` And all this in spite of the bounce back which the PN fortunes had through the mishandling of the La Salle issue by the Drydocks Section of the GWU which gave the Prime Minister an opportunity to enjoy a rare short instance of perceived strong` leadership.` No doubt some residual benefits of this La Salle bounce back benefitted the PN vote in the local elections but, failing more gaffes from the Labour /GWU side, it will be completely exhausted in future elections.

The message was however not lost on the Prime Minister.` Knowing that government present position is unsustainable the Prime Minister was forced to dig himself into further contradictions.`

In a direct TV debate with the Leader of the Opposition the Prime Minister acknowledged, for the first time may I add,` that Switzerland in the Mediterranean policy, is a sensible and adaptable policy for Malta but he went on to add that his government can obtain the necessary derogations from the EU to be able to achieve the benefits of Switzerland in the Mediterranean within a framework of EU membership.

Can you believe it` Those who were accusing Labour for promoting an unrealistic a la carte solution outside the membership option have lost so much room for manoeuvring` that they are now shamelessly contradicting themselves in `proposing `unrealistically to turn EU membership from a set menu into a lavish buffet display.

So according to our Prime Minister the EU will be accepting derogations which would permit us to buy our basic food at international world price and not at higher internal EU prices.` The EU will be allowing us to restrict property purchases by other EU nationals to one single property unit for own use.` And whilst our citizens will have all the freedom to work wherever they will in other EU states,` we will be given the right to restrict access of other EU nationals to our domestic` labour market.

The EU will be allowing us to retain our status of active neutrality and we will not be forced to follow any present or future initiatives to align our foreign and defence policies to the central objectives designed in Brussels.

Now any elementary student who has even a remote following of developments of the enlargement project of the EU knows that this is day-dreaming at its best. Regular pronouncements from Brussels unmistakably point that permanent derogations from the acquis communitaire are out the question and transitory provisions will only be considered exceptionally, for short periods and in very small quantities which do not offend the single market concept.

Continuing to tie itself in self-destruct contradictions will inevitably lead this government to obvious results of which the last local elections was just a fore-taste.

Xarabank bla helsien

Il-Kullhadd Xarabank Bla Helsien

Ma niddejjaqx nghid li XARABANK huwa wiehed mill-ahjar programmi tat-television malti u programm li jigbed l-akbar udjenzi.

Ghal min imexxi stazzjon tat-TV bhal ma jien immexxi s-Super One TV huwa holma li xi darba programm minn taghna jghaddi lil XARABANK fl-udjenzi. Politikamanet ma niddejjaqx nghid ukoll li XARABANK sar ghodda perikoluza f`idejn il-gvern u l-partit nazzjonalista li jafu kif u meta jigbdu l-ispag biex idawwru XARABANK f`ghodda politika favur il-partit nazzjonalista` u kontra l-partit laburista.

Protagonist f`din il-loghba hemm Peppi Azzopardi, prezentatur kapaci u tal-mestier li jaf juza l-medium tat-televison u llum sar sinonomu ma XARABANK. Peppi ghandu zewg karattri.` Hemm Peppi li jpingi ruhu bhala socjalist xellugi u li meta jkejjel lilu nniffsu ma Alfred Sant ipengi ruhu fuq ix-xellug ferm aktar minnu.

Izda mbghad hemm Peppi` ta` XARABANK li fl-ghazla tas-suggetti hafna drabi jippozizzjona ruhu biex iktar imexxi l-propaganda nazzjonalista milli l-kawza socjalista.` Ghalhekk ikun zvelt li jibghat lil kru tieghu jistaqsi n-nies tat-tarzna l-ghada tal-messagg lin-nazzjon mill-Prim Ministru dwar il-La Salle jekk hux ser icedu ghat-theddid tal-Prim Ministru. Izda mbghad bil-kalma jikteb` fil-gazzetta tal-GWU li mhux sewwa li l-Prim Ministru ta ghazla morra bhal din lill-haddiema. Sadanittant din l-ghazla morra kien partecipi fiha wkoll il-kru ta` XARABANK.

Fil-programm li kien hemm din il-gimgha f`BABEL din il-kontradizzjoni f`Peppi Azzopardi harget cara. Harget cara wkoll il-kontradizzjoni li Peppi Azzopardi ma jaqbilx mat-televoting izda juzah ghal skopijiet kummercjali.

Mela hemm mottivi kummercjali li qed igieghlu lil Peppi li jaghmel affarijiet li ma jaqbilx maghhom, li jichdu l-ideal tax-xellug li hemm imbejjet f`qalbu sa minn twelidu. U hawn fejn huwa perikoluz XARABANK ghal Partit Laburista.

Ingezwer fil-karta xelulgija fil-persuna ta` Peppi Azzopardi,` XARABANK fil-mument tal-bzonn ikun il-forcina tal-partit nazzjonalista. Jista` jdum jichdu kemm irid dan Peppi izda l-fatti juru mod iehor. U mhux billi jghid iva din staqsejtielu u dik staqsejtielu. Trid tara l-impostazzjoni shiha tal-programm biex tghaddi gudizzju.

Biex jidba jkun kredibbli XARABANK ghandu jittratta wkoll suggetti li jimbarazzaw lil Gvern. Il-mahfriet` presidenzjali dubbjuzi , il-guri politiku ta` Pullicino, il-weghdiet miksura tal-manifest elettorali tal-gvern,` il-lament mil-ghafsa tat-taxxi tal-middle class;` dawn m`humiex suggetti li jinteressaw lil XARABANK.

Il-fatt li s-survey ta` l-Awtorita tax-Xandir sar f`dik il-gimgha stess tal-La Salle tista` tkun raguni ghala XARABANK bidel is-suggett fl-ahhar biex jigbed l-udjenzi anke jekk kien jaf li ser ikun kostrett itella programm zbilancjat ghall-ahhar`

Peppi u jien ma nafux lil xulxin sew. Fil-ftit drabi , u ftit hafna, li stedinni ghal XARABANK dejjem zgiccajt ghax ma nhossx li nista naghmel diskussjoni serja minn fost l-udejnza. Izda jien u hu naqblu zgur fuq l-ghozza li ghandu jkollna lejn il-helsien ta` pajjizna.

L-ghozza li pajjizna jrid jibqa jirbah il-helsien billi jhaddem politika ta` newtralita u ta` paci u li ma nizzerzqux helu helu f`xi process irriversibbli li jibda bil-helu ta` l-ghajnuna ekonomika u jispicca bil-morr tan-neo kolonjalizmu.

L-appell tieghi lil Peppi huwa li s-sahha li jtih il-popolarita` tal-programm XARABANK juzaha, jekk jista`,` biex isostni u jkattar il-helsien u mhux biex ikun mezz iehor ta` media biex il-gvern jiggustifika l-ingustifikabbli.

Sakemm Peppi jqum ghal din ir-responsabbilta` u ma jpartatx il-principji mal-kummerc,` il-laburisti ghandhom iqisu lil XARABANK bhala theddida ghal helsien u bicca ghodda ohra f`idejn il-magna propagandistika tal-gvern.

Friday, 23 March 2001

Partisan games

The Malta Independent

Partisan Games

Partisan games politicians play have reached new dimensions. A Prime Minister`s address to the nation regarding the La Salle issue held on 15th February 2001 was used to bolster the audience ratings of Net TV and to disadvantage` Super One TV. Super One TV had won the two official ratings measured in 2000 by independent surveys commissioned by the Broadcasting Authority. The author is chairman of the company that operates Super One media.

A Prime Minister`s address to the nation is a national event par excellence. Through it the Prime Minister speaks to the whole nation not to Nationalists, Labourites or in-betweens. For such events the Department of Information is duty bound to give equal access to all media. For such national events` it is customary for the national TV to be tasked to transmit the event and to offer a transmission feed to all local TV stations to avoid having duplication of heavy transmission equipment and links.` Arrangements on these lines have already been put in place for the Pope`s visit next May.

After all the national TV station, whilst allowed to compete across the board for advertising revenue, benefits from TV license fees charged to every household. No share of these license fees is offered to private TV stations. So the least expected of the national TV station is to take the lead in such national events and offer a feed to the private stations under the direction of the Department of Information.

Nothing of this sort happened on the occasion of the PM`s address to the nation last February.` Unofficial information was reaching One News that the PM was about to make an official address to the nation and` that outside broadcasting units of Net TV and PBS were already lined up near Castille for the transmission. Officially Super One` was kept completely in the dark and it was through own initiative that a camera person and a journalist were sent to Castille to cover the event.

As it happened the PM`s address was televised direct by Net TV and PBS but Super One had to make do with a filmed version.`

Protests were made with the Department of Information (DOI). After several exchanges of correspondences it was concluded that the DOI was kept completely out of arrangements with the media which were handled directly by the Office of the Prime Minister.` It also resulted` that PBS were officially asked to transmit as the national TV station, whilst NET TV had heavenly inspiration to ask for direct transmission and to pre-record their evening discussion show which is normally transmitted live.

This may seem to be petty games which politicians play on a daily basis. But when one realises that on that very same day the audience survey commissioned by the Broadcasting Authority was in progress, then one realises that the PM`s address to the nation was` a machiavellian plan not only to recover lost political ground as a build-up to the local elections which were due on March 10th, but was also a plan to attack the audience following of Super One TV which were being measured on that very same day.

Super One media is the only voice available for the Opposition to counteract the vast array of media available to the government. Using a PM`s address to the nation to play such undemocratic political games shows the pitiful state of the current administration that has lost all sense of direction.` Will the Broadcasting Authority, another national institution par excellence,` allow itself to be used in such political games`

Monday, 19 March 2001

Lavish Buffet

The Times of Malta



No prizes for your memory skills if you remember that just over a month ago EU Enlargement Commissioner Gunther Verheugen had visited us and made it clear that we cannot have membership a` la carte. He reminded us that EU membership entailed adoption of the entire corps of the Acquis Communitaire with requests for transitory arrangements being restricted to exceptional situations.

The pro-EU lobby immediately interpreted this to be criticism of Labour`s Switzerland in the Med policy. But this could hardly be the case as Labour was not seeking membership, set menu or a la carte, Verheugen could not have been addressing those remarks towards Dr. Alfred Sant whom he had already met and expressed that the EU would respect the people`s verdict if Labour gets elected with a mandate to seek special bilateral relationship with the EU.

Verheugen had stated that he could not simultaneously conduct membership negotiations with the government and special relationship negotiations with the opposition. The EU always negotiates with the government in accordance with its electoral mandate.

Recent pronouncements by the Prime Minister during a TV debate with the Leader of the Opposition throws new light as to whom Verheugen`s remarks were probably addressed. Still bruised by the local electoral defeat and seeking to give new meaning to its backbone policy of early accession into the EU,` the Prime Minister has made quite a few surprising revelations. Firstly he accepted that Malta should have alternatives to EU membership as he is not willing to seek accession whatever the conditions. Secondly he stated that the benefits which Labour was seeking to obtain from its Swiss Med policy can be obtained through derogations in the negotiations for EU membership.

When pressed the Prime Minister explained that he expects the EU to concede that Malta can maintain protection for its agricultural sector blocking imports of competing EU produce; that Malta would be able to import basic food at international prices not at higher internal EU prices;` that freedom of movement of foreign labour in Malta could be restricted; that foreign EU nationals would not be allowed freedom to buy property in Malta; that seven year run off for Drydocks subsidies will be allowed; that Malta will be allowed to keep its neutrality and will not be asked to participate in any common foreign or defence policy initiatives; so on and so forth.

So the Prime Minister revealed that he can cleanse his EU accession project from all the disadvantages which motivate Labour to opt for a special relationship type of approach so that we can enjoy the benefits of both EU membership as well as Swiss Med policy.

So suddenly the Prime Minister who until last month was criticising the Leader of the Opposition as unrealistic in expecting to negotiate a la carte with the EU rather than accept their set menu, has now been inspired by a local elections defeat that not only we will reject the set menu but we will insist on the EU to serve us a lavish buffet from which we could pick and choose at leisure.

Must this country continue to be punished through such mediocre leadership Mr Verheugen can you please repeat that the EU cannot offer us membership a la carte`

After being so critical of it the Prime Minister has now discovered the beauty of a la carte but unrealistically wants to frame it within a membership structure. One further small step (may be one more local election disappointment) and we might gain consensus on Switzerland in the Mediterranean specially negotiated relationship outside the membership structure.

Alfred Mifsud





Lavish Buffet

The Times of Malta



No prizes for your memory skills if you remember that just over a month ago EU Enlargement Commissioner Gunther Verheugen had visited us and made it clear that we cannot have membership a` la carte. He reminded us that EU membership entailed adoption of the entire corps of the Acquis Communitaire with requests for transitory arrangements being restricted to exceptional situations.

The pro-EU lobby immediately interpreted this to be criticism of Labour`s Switzerland in the Med policy. But this could hardly be the case as Labour was not seeking membership, set menu or a la carte, Verheugen could not have been addressing those remarks towards Dr. Alfred Sant whom he had already met and expressed that the EU would respect the people`s verdict if Labour gets elected with a mandate to seek special bilateral relationship with the EU.

Verheugen had stated that he could not simultaneously conduct membership negotiations with the government and special relationship negotiations with the opposition. The EU always negotiates with the government in accordance with its electoral mandate.

Recent pronouncements by the Prime Minister during a TV debate with the Leader of the Opposition throws new light as to whom Verheugen`s remarks were probably addressed. Still bruised by the local electoral defeat and seeking to give new meaning to its backbone policy of early accession into the EU,` the Prime Minister has made quite a few surprising revelations. Firstly he accepted that Malta should have alternatives to EU membership as he is not willing to seek accession whatever the conditions. Secondly he stated that the benefits which Labour was seeking to obtain from its Swiss Med policy can be obtained through derogations in the negotiations for EU membership.

When pressed the Prime Minister explained that he expects the EU to concede that Malta can maintain protection for its agricultural sector blocking imports of competing EU produce; that Malta would be able to import basic food at international prices not at higher internal EU prices;` that freedom of movement of foreign labour in Malta could be restricted; that foreign EU nationals would not be allowed freedom to buy property in Malta; that seven year run off for Drydocks subsidies will be allowed; that Malta will be allowed to keep its neutrality and will not be asked to participate in any common foreign or defence policy initiatives; so on and so forth.

So the Prime Minister revealed that he can cleanse his EU accession project from all the disadvantages which motivate Labour to opt for a special relationship type of approach so that we can enjoy the benefits of both EU membership as well as Swiss Med policy.

So suddenly the Prime Minister who until last month was criticising the Leader of the Opposition as unrealistic in expecting to negotiate a la carte with the EU rather than accept their set menu, has now been inspired by a local elections defeat that not only we will reject the set menu but we will insist on the EU to serve us a lavish buffet from which we could pick and choose at leisure.

Must this country continue to be punished through such mediocre leadership Mr Verheugen can you please repeat that the EU cannot offer us membership a la carte`

After being so critical of it the Prime Minister has now discovered the beauty of a la carte but unrealistically wants to frame it within a membership structure. One further small step (may be one more local election disappointment) and we might gain consensus on Switzerland in the Mediterranean specially negotiated relationship outside the membership structure.

Alfred Mifsud





Sunday, 18 March 2001

Qatghu qalbhom

Il-Kullhadd Qatghu qalbhom

Ir-risposta tal-poplu permezz ta` l-elezzjoni tal-Kunsilli kienet cara. Hija fil-linja li gieli spjegajt li l-Partit Laburista miexi lejn l-akbar rebha elettorali li qatt kellu. Fl-arroganza li hakmithom in-Nazzjonalisti ma stennewx dan ir-rizultat ghax jemmnu li permezz tal-media jistghu ikomplu jizgiccaw mir-responsabbilta` taghhom lejn l-elettorat.

Ir-rejazzjoni taghhom ghar-rizultat kienet pwerili u konfuza. F`nifs wiehed jghidu li ser jghatu kaz tal-messagg tal-poplu u fin-nifs ta` wara jsostnu li huma qeghdin fid-direzzjoni t-tajba.` Dan ifisser allura li l-poplu zbalja li issa gabhom partit tal-minoranza.

Ir-rejalta` izda hija li n-nazzjonalisti qajla ghandhom ghazla. Ghall-ewwel darba matul ir-renju taghhom ta` erbatax il-sena qeghdin jippressiedu fuq ekonomija mghaxxa li ma jistghux ikomplu jippompjawha fl-infieq kif imdorrijin jaghmlu. Ghax il-kaxxa mifqugha! Ghax l-infiq bil-kultura ta` money no problem gabna f`sitwazzjoni li tintaxxa kemm tintaxxa lill-poplu, tbiegh kemm tbiegh tezori ta` l-istat , l-izbilanc fiskali jippersisti u jikber ghax l-infiq ma jafux irazznuh.

Allura nistaqsi jien x`mizuri jistghu jiehdu n-nazzjonalisti biex jaghtu l-poplu ic-cejca u l-perlini li weghduh fil-programm elettorali Idejhom marbuta. Qed jghixu gidba kuljum u ghalhekk ma jistghux joffru s-soluzzjonijiet veru li l-pajjiz tassew ghandu bzonn.

Fil-fatt johrog car li issa qatghu qalbhom milli jistghu isolvu l-problema tal-pajjiz. Il-gimgha l-ohra, sewwa sew jumejn qabel l-elezzjoni tal-kunsilli lokali , hadt sehem f`dibattitu televiz fuq stazzjon privat fejn Leo Brincat u jien iffaccjajna lil Ministru tal-Finanzi John Dalli u l-Perit Michael Falzon.

Meta bdejt nispjega x`inhuma il-vera problemi tal-pajjiz, il-bzonn li titrazzan in-nefqa pubblika, il-bzonn li n-nies jigu re-trained fit-teknologiji godda halli jsibu jahdmu f`impjiegi produttivi, fil-bzonn li jigi elett gvern li jkollu program serju mimli rejalta` mhux weghdi fierha halli b`hekk il-gvern ikollu mandat ( li dan il-gvern ma ghandux) li jigbor mieghu il-forzi kollha tal-pajjiz fi pjan nazzjonali, l-esponenti tal-Partit Nazzjonalista qalu li l-ebda gvern ma jista` jigi elett bi program bhal dan.

Mela nistaqsi jien kif jigi elett gvern` B`weghdi fierha u qarrieqa Qatghu qalbhom in-nazzjonalisti li jistghu ikunu onesti mal-poplu Malti u jkellmuh car Minflok il-pjan taghhom huwa li lil pajjizna nerghu nikkolonizzawh biex l-UE timponi fuqna id-dixxiplina li ahna ma nistghux niehdu ghalina nfusna. U mad-dixxiplina timponi wkoll mizuri li jnezzghu lil Malta mis-sovramita` li tant thabtu ghaliha missirijietna.

F`dan id-dibattitu hareg bl-aktar mod car li dan huwa l-pjan kollu li ghandhom in-Nazzjonalisti rigward membership ta` pajjizna fl-UE. Pjan biex jiehdu id-decizjonijiet iebsa bla ma jintnu huma mal-poplu u minflok tinten l-UE. Ghalhekk iridu l-appogg tal-Laburisti ghal dan il-pjan halli nidhlu komplici fl-ugiegh u nhallu lilhom igawdu l-poter li jahsbu li ghandhom dritt divin ghalih.

Il-Partit Laburista ghandu fiducja shiha li l-poplu, issa aktar minn qabel iddejjaq jisma hrejjef. Il-poplu huwa ghatxan ghal verita`.` Il-poplu lest jappoggja lil min juri fiducja fih u jurih it-triq biex bil-galbu nohorgu mis-saram li dahhluna fih in-nazzjonalisti.

Tnejn u ghaxrin sena wara li ksibna il-helsien ekonomiku mill-bazi militari n-nazzjonalisti gabuna kalzrira kwazi nibzghu mil-helsien u lesti nerghu niranuh biex insolvu l-problemi ekonomici billi noffru s-sovranita taghna fuq platt lil min ghandu ghajnu fuq il-pozizzjoni geo-strategika taghna ghal pjanijiet ta` difiza tieghu.

Wara tnejn u ghoxrin sena il-Partit Laburista ser jigi msejjah mill-gdid biex nergghu nifdu lil-poplu u ntuh il-helsien bil-politika ta` Svizzera fil-Mediterran li thallina ekonomikament qawwija u politkament liberi u newtrali` bla ma nintrabtu mal-karru militari ta` hadd.

Il-poplu ta` sinjal car fl-elezzjoni tal-kunsilli fejn qed jonfoh ir-rih.` Id-direzzjoni fejn irid imur il-poplu hija cara. In-nazzjonalisti qatghu qalbhom li jmexxu lill-poplu fid-direzzjoni tal-helsien u tan-newtralita u tat-tkattir tal-gid ekonomiku. Minflok jippreferu it-triq tat-taxxi, tal-infiq bla razan u ta` l-UE li imbaghad timponi fuqna hi d-dixxiplina.` Il-poplu dan ma jridux. Irid lil min imexxih lejn il-helsien. Dak li l-Partit Laburista ghamel bejn 1972 u 1979 ser ikollna naghmluh mill-gdid ma ndumux.` Inlestu ghalih ghax wara kollox dak kien l-isbah zmien ghalina.

Friday, 16 March 2001

Wrong direction

The Malta Independent

Wrong direction

The message delivered by the local election results of last weekend is that contrary to government`s motto the country is moving in the wrong direction.

The two major areas of government policy where the direction has been certified wrong by the electorate are those` of` economic management and the European Union. The two are related, probably connected issues.

The government has lost the tools to manage the economy in an effective manner. Governments do not work miracles. They manage the economy by using three major policy tools that permit, if used judiciously and persistently, stable economic growth leading to sustainable prosperity. The tools within government`s immediate disposal are fiscal policy, monetary policy and exchange rate policy.

This government has worked up horrendous budget deficit leading to a rapid build-up of national debt that leaves little room for manoeuvring with fiscal policy.` So in spite of having very dull conditions of local demand the fiscal deficit is constraining the government to slap on taxes on to a slumping economy dampening local demand even further. Compare this to the enviable position of UK Chancellor Gordon Brown, who last week had the luxury of spreading tax rebates and social services on a wide cross-section of society. This whilst still applying a huge budget surplus to reduce national debt at a time when the British economy is on a prolonged sustainable boom.

Monetary policy also allows little room for effective management. The Governor has already signalled that interest rates are more likely to rise than fall.` This is quite understandable with government having a substantial deficit to finance and other debt to rollover at a time it is relaxing capital controls and taxing local investments. In any event as the Japanese are finding out, there is much truism in Keynes` teaching that in promotion of economic demand monetary policy is like pushing on a string.

Exchange rate policy management, which like Japan is the only tool left at our disposal to manage the economy, has been repeatedly brushed aside by the government as well as by the Governor of the Central Bank.

So how is the economy to be managed` By prayer` By hope`

The same applies to government`s policy for the EU. How can the government proceed regardless with a policy of such deep and irreversible magnitude when more than half the population denied government the endorsement sought, when one-third of the electorate was sampled last weekend`

Cosmetics and make-belief policies cannot address this country`s problems.` They can only be addressed by electing a government with a clear mandate to carry out the overdue deep structural reforms, giving it a clear mandate to demand national support for its programmes. A structural reform based on economic growth, investment incentives, tax reductions and efficiency and quality leaps in all sectors of the economy. Everything else is a waste of time and power enjoyment at the expense of the real needs of this nation that is crying out for a real sense of direction.

Sunday, 11 March 2001

Manipulation and abuse

The Malta Independent on Sunday

Manipulation and abuse

We do not need emissaries to brain-wash us how juicy life is inside of the EU.` We need arguments, hard facts and concrete realities to help us envision what life inside the EU consists of for a peripheral island in the Mediterranean under EU rules as would be applicable in 2005. It is high time for government to come down from its head in clouds approach depicting` EU membership like a religious mission to be followed with faith not reason. It is time for the Opposition to fleshen up its Switzerland in Mediterranean model and frame it within the context of existing structures like EFTA or EEA to package it` in a more understandable manner.

Whilst misguidedly criticising other for choosing a la carte solutions the Prime Minister quoted me a la carte to back-up his argument that Switzerland in the Mediterranean slogan is meaningless. He clearly disregarded the first part more relevant to governments policies and in the run up to local elections started re-promising EU funds for local councils. Easy promises for hard deliverables!

This is typical of how it is difficult to hold a sensible discussion on almost any subject touching the political field in Malta. `Everything gets manipulated and abused. Facts are presented as opinions and opinions depicted as facts until the two different concepts are mingled interchangeably.

Whilst the government avoids bringing its pro-EU argumentation down to a level which the people can understand and embrace, whilst it refuses to publish reports paid for by tax payers funds for openly admitted fear that such reports could strengthen the case of those who doubt the validity of the EU model for Malta`s particular circumstances, it has no compunction in instigating the opposition to be more concrete about its Swiss model. It does this at the same time that it denies to` the Opposition fair` access to public funds for dissemination of information on the opposition`s EU policies whilst lavishly splashing the same public funds to push government`s` own EU membership case with high level rhetoric and strong unsupported conviction about the absence of real alternatives.

Regarding the Swiss model I find enlightening the following communication I received from` a level-headed Swiss friend.

QUOTE In a referendum vote on Sunday 4.3.01, the Swiss people massively (with 77 percent of the votes and a "no" majority in all cantons) rejected a "people's initiative" requesting that the Federal Government immediately start negotiations on EU membership.

Throughout Europe, main stream mass media have reacted to the Swiss vote either by briefly mentioning it as a minor issue buried behind loads of information on mad cows and the mouth and foot disease, or by depicting Switzerland as a bizarre alpine dwarf state, whose selfish, xenophobic and backward inhabitants are being manipulated by a populist far-right politician and industrialist, Christoph Blocher.` This picture has little to do with the truth. As a matter of fact, the large majority of Swiss (including myself) who voted against starting membership negotiations with the EU are firmly opposed to Mr Blocher's right-wing populism. These voters, who can be found throughout the political spectrum of Switzerland, firmly oppose EU-membership on one, several or all of the following grounds:

We do not want to give up a policy of genuine neutrality that has kept Switzerland out of two world wars, has allowed the country to act as a mediator in many conflicts. We do not want our army to operate outside our national territory. We do not want to see Swiss soldiers "enforcing peace" in Kosovo, Iraq or elsewhere.` Our credibility as a sovereign ,neutral and peaceful country is based on the existence of a people's militia, a force designed and equipped only to defend the country in the event of foreign aggression, and not to intervene in foreign conflicts. Only with such an army, technically and structurally incapable of participating in foreign military operations, can the credibility of Switzerlands policy of strict neutrality be maintained and can the country remain a reliable international partner in building peace. We believe in the efficiency of the Swiss model of direct democracy and strong local government which effectively prevents the "classe politique" in government and parliament from developing policies not backed by the people. UNQUOTE

If the Swiss model would serve only to free us from the permanent election campaign which the local elections model has landed us into than I would go for the Swiss model for that reason alone. It will help to bring about a sensible discussion free from abuse or manipulation on matters which are dividing us unnecessarily.

Then just think about it. The Swiss model gives its people the opportunity to express themselves quite regularly on the EU model they prefer. That they consistently choose to stay out in spite of being often falsely threatened with impoverishment shows the foresight and the jealousy with which they preserve their identity. Who knows if the citizens of Austria, Sweden,` UK, Ireland` and Denmark were to be given another chance to choose`

Manipulation and abuse

The Malta Independent on Sunday

Manipulation and abuse

We do not need emissaries to brain-wash us how juicy life is inside of the EU.` We need arguments, hard facts and concrete realities to help us envision what life inside the EU consists of for a peripheral island in the Mediterranean under EU rules as would be applicable in 2005. It is high time for government to come down from its head in clouds approach depicting` EU membership like a religious mission to be followed with faith not reason. It is time for the Opposition to fleshen up its Switzerland in Mediterranean model and frame it within the context of existing structures like EFTA or EEA to package it` in a more understandable manner.

Whilst misguidedly criticising other for choosing a la carte solutions the Prime Minister quoted me a la carte to back-up his argument that Switzerland in the Mediterranean slogan is meaningless. He clearly disregarded the first part more relevant to governments policies and in the run up to local elections started re-promising EU funds for local councils. Easy promises for hard deliverables!

This is typical of how it is difficult to hold a sensible discussion on almost any subject touching the political field in Malta. `Everything gets manipulated and abused. Facts are presented as opinions and opinions depicted as facts until the two different concepts are mingled interchangeably.

Whilst the government avoids bringing its pro-EU argumentation down to a level which the people can understand and embrace, whilst it refuses to publish reports paid for by tax payers funds for openly admitted fear that such reports could strengthen the case of those who doubt the validity of the EU model for Malta`s particular circumstances, it has no compunction in instigating the opposition to be more concrete about its Swiss model. It does this at the same time that it denies to` the Opposition fair` access to public funds for dissemination of information on the opposition`s EU policies whilst lavishly splashing the same public funds to push government`s` own EU membership case with high level rhetoric and strong unsupported conviction about the absence of real alternatives.

Regarding the Swiss model I find enlightening the following communication I received from` a level-headed Swiss friend.

QUOTE In a referendum vote on Sunday 4.3.01, the Swiss people massively (with 77 percent of the votes and a "no" majority in all cantons) rejected a "people's initiative" requesting that the Federal Government immediately start negotiations on EU membership.

Throughout Europe, main stream mass media have reacted to the Swiss vote either by briefly mentioning it as a minor issue buried behind loads of information on mad cows and the mouth and foot disease, or by depicting Switzerland as a bizarre alpine dwarf state, whose selfish, xenophobic and backward inhabitants are being manipulated by a populist far-right politician and industrialist, Christoph Blocher.` This picture has little to do with the truth. As a matter of fact, the large majority of Swiss (including myself) who voted against starting membership negotiations with the EU are firmly opposed to Mr Blocher's right-wing populism. These voters, who can be found throughout the political spectrum of Switzerland, firmly oppose EU-membership on one, several or all of the following grounds:

We do not want to give up a policy of genuine neutrality that has kept Switzerland out of two world wars, has allowed the country to act as a mediator in many conflicts. We do not want our army to operate outside our national territory. We do not want to see Swiss soldiers "enforcing peace" in Kosovo, Iraq or elsewhere.` Our credibility as a sovereign ,neutral and peaceful country is based on the existence of a people's militia, a force designed and equipped only to defend the country in the event of foreign aggression, and not to intervene in foreign conflicts. Only with such an army, technically and structurally incapable of participating in foreign military operations, can the credibility of Switzerlands policy of strict neutrality be maintained and can the country remain a reliable international partner in building peace. We believe in the efficiency of the Swiss model of direct democracy and strong local government which effectively prevents the "classe politique" in government and parliament from developing policies not backed by the people. UNQUOTE

If the Swiss model would serve only to free us from the permanent election campaign which the local elections model has landed us into than I would go for the Swiss model for that reason alone. It will help to bring about a sensible discussion free from abuse or manipulation on matters which are dividing us unnecessarily.

Then just think about it. The Swiss model gives its people the opportunity to express themselves quite regularly on the EU model they prefer. That they consistently choose to stay out in spite of being often falsely threatened with impoverishment shows the foresight and the jealousy with which they preserve their identity. Who knows if the citizens of Austria, Sweden,` UK, Ireland` and Denmark were to be given another chance to choose`

Lanqas jafu jisthu

Il-Kullhadd Lanqas jafu jisthu

L-arroganza tan-nazzjoanlisti issa tant telghatilhom ghal rashom li tilfu kull sens ta` misthija. Il-poter assolut li kisbu wara l-ahhar elezzjoni qed juzawh biex jimmanipulaw kollox u lil kulhadd;` biex l-abjad jghidulu iswed u vici versa.

Dan hareg b`mod carissimu fil-gimghat li ghaddew waqt il-kampanja elttorali ghal kunsilli lokali. Araw ftit il-mod differenti kif in-nazzjonalisti ittrattaw zewg kunsilli lokali, tal-Mosta u ta` Bormla,` u ghamlu analizi tat-tustagni grassa li ma taf l-ebda limitu.

Il-kunsill tal-Mosta huwa kaz ta` mis-management li kien ilu jakkumulha. Dahal ghal-progetti li ma kellux finanzi ghalihom u li lanqas kienu ta utilita` assoluta jew prijorita ghan nies tal-Mosta. Minkejja li dan il-kunsill sa mill-bidu tieghu kien dominat minn kunsilliera nazzjonlisti` ftit ilu canfira iebsa mill-Ministeru u spicca hallas kollox is-segretarju tal-Kunsill li gie mgieghel jirrezenja.

Izda fil-gimghat ta` qabel l-elezzjoni d-diska nbidlet. Il-Kunsill tal-Mosta sar wiehed galbuz u l-gvern ifferma kuntratt biex jiffinanzja b`mod dirett progett ta` Lm130,000. L-izbilanc akkumulat, l-istess bhal kull meta taghmel ix-xita, gie kolpuz fuq it-tmexxija ta` Alfred Sant meta kien Prim Minsitru. Tghawwig, nofs veritajiet u addirittura gideb biex jitghatta t-tahwid u jigi limitat id-dannu elettorali tal-Mostin li xebghu jaraw rahalhom immexxi b`dak mod avventuruz.

Mal-Kunsill ta Bormla izda mxew mod iehor. Il-Kunsill ta` Bormla huwa dominat mill-laburisti. Minkejja d-differenzi li hemm bejn il-Partit Laburista u s-sindku Pawlu Muscat hadd ma jichad li dan is-sindku hadem fuq li hadem biex itejjeb il-hajja tac-cittadini bla ma dahhal lill-Kunsill tieghu fl-ebda zbilanc.

Izda ma dan il-Kunsill wara li ghamlu zmien izeghlu bis-sindku biex ikomplu jizirghu il-firda fil-Partit Laburista f`daqqa wahda dawwru l-folja. Qabdu ma haga ta` natura sekondarja ghax ma ssejhetx offerta pubblika ghal kuntratt dwar progett li jaqbel mieghu kullhadd u li l-fondi ghalih qed fil-Kumitat ghar-Rijabilitazzjoni tal-Kottonera li ta l-ok tieghu.` Jekk sar hazin hazin izda zgur li l-piz tan-nuqqas huwa insinjifikanti hdejn dak tal-Kunsill tal-Mosta. Lil ta l-ahhar naghtuh flus specjali ta` Lm130,000 biex nghattu t-tahwid u lil ta` Bormla il-pulzier inkabbruh pied jekk mhux jarda.

Il-Ministru qed jhedded ukoll li jxolji il-Kunsill ta` Bormla. Dan ghandu pjan politiku warajh biex ikompli jifred il-laburisti bejniethom fil-lokal qawwi bhal Bormla.` Ghax billi Pawlu Muscat ma ghadux jista johrog taht il-bandiera laburista jekk il-bormlizi jergghu jivvutawlu fuq il-merti tieghu bhala sindku ikunu qed jizirghu il-firda bejn il-partit u l-gheruq tieghu f`Bormla.

F`dawn il-pjani makkjavelljani jispecjalizzaw in-nazzjonalisti. Flok jiffukaw biex isolvu il-problemi kbar li ghandu l-pajjiz jahlu l-energija biex jimmanipulaw u jhawdu l-imhuh.` Jaqilghu diversivi skond il-htiega li jkollhom biex jizvijaw l-opinjoni pubblika mit-tahwid li bih qed imexxu lil pajjiz.

Specjalment minn wara l-elezzjoni ta` l-1998 `l hawn wahhluha f`mohhom u juruha f`imgiebthom li ghandhom dritt divin li jmexxu lil pajjiz u li jhawwdu kemm ihawwdu lil poplu jistghu ibellghulu li jridu bl-ghajnuna ta` l-allejati li ghandhom mferrxa max-xibka ta` poter li hawn fil-pajjiz, f`kull settur u mhux biss fil-politika.

Jahsbu li bil-manipulazzjoni jistghu jghattu il-hmieg li jinten pesti minn seba mili boghod. Jahsbu li l-poplu jinsa kif fil-kaz tad-Daewoo kollox jindika li setghu jisselfu tant miljuni ghal negozju li tmexxih bl-eluf biss permezz ta` patrunagg politiku. Jinsa kif Bank bhal Mid-Med inbiegh b`nofs press bla ma saru offerti.` Jinsa kif Malta ddahlet fi spiza tant gholja ghaz-zejt li kkunsmajna fis-sena 2000 grazzi talli l-gvern issupervja ma ma ghamilx hedging fuq il-prezz taz-zejt meta kien baxx. Jinsa l-iskandli li hergin kuljum, l-ahhar wiehed fuq il-car park ta` l-ajruport fejn il-kuntratt gie mgedded bla ma saret sejha mil-gdid ghall-offerti.

Jahsbu li billi jorganizzaw konferenza dwar in-newtralita fil-kostituzzjoni u jirrangaw mal-gazzetti bl-ingliz biex itambru fuq din il-haga jaslu biex jibdlu l-Kostituzzjoni, jekk mhux fil-parlament fil-qorti, biex minn dak li gie miftiehem fl-1987 jinzamm biss dak li jaqblilhom.

Jahsbu li jistghu bil-propaganda jistghu jillupjaw lil poplu u jdahhluh fi triq one-way lejn shubija fl-UE bla ma jhalluh ikejjel sewwa bil-kalma u bil-kwiet x`jaqbillu sewwa.

Jekk il-poplu Malti jkompli jibla` dan kollu minkejja li` qed jinghasar bit-taxxi frott it-tahwid nazzjonalista mela allura ma jixraqlux il-helsien u sovranita` li tant batew ghaliha missirijietna . Mela allura nkunu sirna poplu miskin li jippreferi l-kolonjalizmu mill-helsien. Sa hawn wassluna dawk li ma ghadhomx jafu jisthu!

Friday, 9 March 2001

Ignoring the Bank

The Malta Independent

Ignoring the Bank

Central Bank autonomy is the backbone of` freedom of movement of capital, one of the basic four freedoms of EU membership.` All EU member countries, not just those that join the Euro mechanism, have to ensure that their Central Banks are in a position to make their own independent assessment of the economy and to implement their monetary policy independently of the government. This` in line with the objective of` economic stability and low inflation targets.

Indeed those countries that join the Euro go one step further and delegate this authority to be exercised in a collective manner by the European Central Bank and not by the domestic central bank.

Central Bank autonomy is an important gear in the checks and balances mechanism of the democratic system. Indeed in Germany the President of the Bundesbank was at times regarded with temerity even by the politicians who would not disregard the Central Bank`s counsel without giving due account to the electorate. The same is true in US where like likes of Volker and Greenspan carry more weight in their assessment of the economy and influence upon` the important variable of perception and confidence than the Treasury Secretary or indeed the President himself.

Malta is an exception. Not only the Central Bank Act` still gives possibility for the Minister to impose his views on those of the Bank but the Bank`s assessment of the economy is either ignored by the government or in certain cases openly challenged by the Minister for Economic Services.

Successive governors of the Central Banks have been issuing regular warnings since the early 1990`s on the aggravating situation of the structural deficit in public finances.` `The Minister of Finance has ignored such warnings with monotonous regularity so that a promised reduction of the fiscal deficit to within 3% of the GDP by 1996 was in fact quadrupled to nearly 12%.` The problem has become so chronic that rigorous tax measures which have slumped domestic demand are leaving little effect on the deficit which obstinately persists due to uncontrolled growth in public recurrent expenditure.

The recent outburst of the current Governor went beyond the public sector fiscal deficit. It also rang the alarm bells regarding the development of the country`s balance of payment deficit with consequent loss of official foreign exchange reserves. With good reason too. Whereas in 1999 during the first 9 months foreign reserves increased by Lm56 million,` in the same period of 2000 reserves contracted by Lm35 million.` In the same period the balance of payments current account swung from a surplus of Lm10 million to a deficit of Lm85 million.`

Reporting on this trend the Dec 2000 Quarterly of the Central Bank states that during the period the surplus on the services account was down by Lm32 million, the surplus on the travel account was down by Lm8 million whilst net investment income was down by Lm9 million. All this against disquieting news that the company which accounts for half of our manufacturing exports is passing through a cyclical contraction leading to unavoidable loss of both nominal exports as well as net value added.

In the face of all this the Minister for Economic Services finds no problems in disregarding the warnings of our Central Bank and takes consolation that the deficit in the Balance of Payments represents mostly higher imports of capital goods.

This is the very reason why Central bank real autonomy is an indispensable component of democratic checks and balances. The Minister has to please an electorate that is keeping him accountable for lightly given easy money promises. The Central Bank has to defend the real value of our money irrespective of the government of the day and has the tools at its disposal to ensure that devaluation of the lira does not become the unavoidable measure which it is in fact fast becoming.

Thursday, 8 March 2001

Mad Cows and Sane Swiss

The Times of Malta



The Swiss voted massively not only against joining the EU but even against the very notion of starting negotiations which could lead to such an eventuality. For the local government media this has been a non-event` Mad cows and sick pigs got more media coverage than the Swiss definite no to starting negotiations for EU membership at any time in the near future.

Yet the matter needs reflection not just because the Labour Party is basing its policy against membership in the EU on the Swiss model. It is important to reflect why the Swiss keep rejecting the EU membership option. Why the Swiss do not get impressed by whoever tries to force them to accept the EU as their only real solution to maintain prosperity which is already among the highest in the world and way above the EU average.

The Swiss are renowned for their active neutrality.` This is so strictly embedded in the Swiss mentality that it has kept the country even out of UN membership for fear that they could be compelled to join a UN peace-keeping force and send their militia to serve outside their territory. They also believe that their neutrality has been a source of peace and prosperity and has enabled them to stay out of war belligerence. In fact they have often used their strict neutrality to offer an infrastructure which warring parties readily accept as conducive to negotiated settlement without perceived prejudice.

EU membership is perceived by the population, if not by the politicians, to prejudice their neutrality credentials. So the basic argument is: why change or risk changing something which has delivered so handsomely` Why try to repair it if it is not broken`

In a similar referendum held in 1992 to vote for entry into the European Economic Area (broadly a full scale economic integration with the EU without getting involved in its Institutions or political chapters), the Swiss also had voted negatively mainly for fear that this would be the start of something irreversible.

When this time they came to the referendum vote on whether to start membership negotiations, the Swiss remembered the doomsday consequences which were predicted by the pro-EU lobby in the run-up to the 1992 referendum.

`















Massive exodus of Swiss companies into the EU area `















No investments coming into Switzerland `















Loss of competitive strength for Swiss exports `















Loss of confidence in Switzerland and declining competitiveness of Swiss trade and industry `















Decay of the Swiss franc caused by a loss of confidence `















Sharp rise of interest rates, which would increase beyond even the European average as a result of the lack of confidence in the Swiss economy `















Higher inflation caused by the higher interest rate levels `















Higher unemployment, which could even rise over EU levels

The Swiss reflected that not only this doomsday scenario did not materialise but that their country made much more progress than the major economies in the EU, their inflation rate is lower, their interest rates are lower, their unemployment is much lower and their economy did not suffer deep cyclical fluctuations as the major economies of the EU.`

They remembered that very recently they approved through another referendum several bilateral agreements which establish a contractual relationship with the EU on various economic fronts without any obligation to enhance this to membership status and without any obligations at the political level which could infringe on their neutrality obsession.

It was therefore easy and natural for the Swiss to reject so astoundingly the call to accept even the notion of starting negotiations for EU membership. It was a perfectly sane and sensible decision even though the EU enthusiast press tried to denigrate down to the same level as the mad cow issue.

Is not the pro-EU lobby trying to force down our throat what they failed to do to the Swiss. There is a valid argument that Switzerland in the EU would have been net payers whereas Malta would be a net beneficiary.` This is not to be discarded. But then whoever has` proved that we will in fact be net beneficiaries if the EU budget beyond 2006 is not yet agreed and we could well be over objective One level of an enlarged EU by then.` Also whilst government can well be a net beneficiary this is not the same things as saying the country as whole will also be a net beneficiary. Higher commodity prices paid by families for every day goods to adhere to CAP prices could well exceed the net funds government will ever receive.

So the Swiss have not lost their mind. They are just performed with their traditional precision.

Alfred Mifsud



Mad Cows and Sane Swiss

The Times of Malta



The Swiss voted massively not only against joining the EU but even against the very notion of starting negotiations which could lead to such an eventuality. For the local government media this has been a non-event` Mad cows and sick pigs got more media coverage than the Swiss definite no to starting negotiations for EU membership at any time in the near future.

Yet the matter needs reflection not just because the Labour Party is basing its policy against membership in the EU on the Swiss model. It is important to reflect why the Swiss keep rejecting the EU membership option. Why the Swiss do not get impressed by whoever tries to force them to accept the EU as their only real solution to maintain prosperity which is already among the highest in the world and way above the EU average.

The Swiss are renowned for their active neutrality.` This is so strictly embedded in the Swiss mentality that it has kept the country even out of UN membership for fear that they could be compelled to join a UN peace-keeping force and send their militia to serve outside their territory. They also believe that their neutrality has been a source of peace and prosperity and has enabled them to stay out of war belligerence. In fact they have often used their strict neutrality to offer an infrastructure which warring parties readily accept as conducive to negotiated settlement without perceived prejudice.

EU membership is perceived by the population, if not by the politicians, to prejudice their neutrality credentials. So the basic argument is: why change or risk changing something which has delivered so handsomely` Why try to repair it if it is not broken`

In a similar referendum held in 1992 to vote for entry into the European Economic Area (broadly a full scale economic integration with the EU without getting involved in its Institutions or political chapters), the Swiss also had voted negatively mainly for fear that this would be the start of something irreversible.

When this time they came to the referendum vote on whether to start membership negotiations, the Swiss remembered the doomsday consequences which were predicted by the pro-EU lobby in the run-up to the 1992 referendum.

`















Massive exodus of Swiss companies into the EU area `















No investments coming into Switzerland `















Loss of competitive strength for Swiss exports `















Loss of confidence in Switzerland and declining competitiveness of Swiss trade and industry `















Decay of the Swiss franc caused by a loss of confidence `















Sharp rise of interest rates, which would increase beyond even the European average as a result of the lack of confidence in the Swiss economy `















Higher inflation caused by the higher interest rate levels `















Higher unemployment, which could even rise over EU levels

The Swiss reflected that not only this doomsday scenario did not materialise but that their country made much more progress than the major economies in the EU, their inflation rate is lower, their interest rates are lower, their unemployment is much lower and their economy did not suffer deep cyclical fluctuations as the major economies of the EU.`

They remembered that very recently they approved through another referendum several bilateral agreements which establish a contractual relationship with the EU on various economic fronts without any obligation to enhance this to membership status and without any obligations at the political level which could infringe on their neutrality obsession.

It was therefore easy and natural for the Swiss to reject so astoundingly the call to accept even the notion of starting negotiations for EU membership. It was a perfectly sane and sensible decision even though the EU enthusiast press tried to denigrate down to the same level as the mad cow issue.

Is not the pro-EU lobby trying to force down our throat what they failed to do to the Swiss. There is a valid argument that Switzerland in the EU would have been net payers whereas Malta would be a net beneficiary.` This is not to be discarded. But then whoever has` proved that we will in fact be net beneficiaries if the EU budget beyond 2006 is not yet agreed and we could well be over objective One level of an enlarged EU by then.` Also whilst government can well be a net beneficiary this is not the same things as saying the country as whole will also be a net beneficiary. Higher commodity prices paid by families for every day goods to adhere to CAP prices could well exceed the net funds government will ever receive.

So the Swiss have not lost their mind. They are just performed with their traditional precision.

Alfred Mifsud



Sunday, 4 March 2001

Tlett ghazliet

Il-Kullhadd Tlett ghazliet

Bejn li gimgha ohra jkollna l-elezzjonijiet tal-kunsilli lokali fost terz ta` l-elettorat, u bejn li kullhadd jara lil gvern joghtor taht il-problemi ta` tmexxija bla ma joffri soluzzjonijiet donnu fil-pajjiz hawn arja ta` kampanja elettorali permanenti avolja ghadna f`nofs triq tal-legizlatura.

Fil-fatt il-gvern ghandu quddiemu tlett ghazliet li jidher tant mifxul quddiemhom li minn zmien ghal zmien jindika kif jiftillu xi wahda minn dawn it-tlieta biex ikejjel ir-rejazzjoni u forsi biex juri li ghandu pjani cara ta` fejn irid imur.

L-ewwel ghazla u l-aktar wahda konfromi mal-mandat elettorali hija li jaghmel referendum dwar l-UE appena jispicca dawk li qed jissejhu negozjati izda li fil-fatt m`huma negozjati xejn, almenu s`issa. Huma biss qbil li naddattow irwiehna ghar-regoli ta` l-Unjoni Ewropeja, nibdlu l-ligijiet kif hemm bzonn anke jekk fil-prattika il-ligijiet ikomplu jinkisru b`mod miftuh bhal fil-kaz tal-ligi tal-copyright.

Il-gvern kien ippjana li jimxi skond din il-politika izda qed jerga` jibdilu. Jaf li r-referendum jista jsir biss fl-2002 u jaf li jekk jitlef ir-referendum ikollu jmur ghall-elezzjoni qabel zmienha ghax ikun tilef ghal kollox il-platform politika li fuqha huwa mibni l-mandat elettorali.` Jaf li l-opinjoni pubblika qed iddur kontra shubija fl-UE u jaf ukoll li hekk kif il-pizijiet tat-taxxi mohbija fil-budget jibdew jinhassu fil-prattika l-opinjoni pubblika ser tkompli iddur kontra. Jaf ukoll li l-pajjiz fadallu problemi kbar u l-gvern ma ghandux fejn jimmanuvra fiskalment biex jimbotta l-ekonomija. Fil-budget li gej ma ghandux x`iqassam hekk kif mill-miri tad-dhul fil-budget ta` din is-sena ifallu habba id-djufija ekonomika li waqa` fiha l-pajjiz.

Jaf ukoll li hafna nazzjonalisti konvinti li f`elezzjoni jivvutaw nazzjonalista ma jkollhom l-ebda problema jivvotaw kontra l-UE f`referendum.` Ghalhekk il-gvern jara` tkunx ahjar it-tieni ghazla li jmur ghal elezzjoni li minnha nfisha tkun referendum dwar l-UE. B`hekk ihoss li jigbed appogg anke min-nazzjonalisti li ghalkemm ma jaqblux ma` shubija fl-UE jivvutaw mal-Partit f`elezzjoni.

Din l-ghazla qeghda tigi wkoll ppressata minn kwartieri mportanti fl-UE.` Jafu li hemm prospett qawwi li jekk elezzjoni ssir fil-kors normali taghha jitla` Gvern Laburista li jerga jibdel ir-rotta u b`hekk ikunu nhlew hames snin ta preparazzjoni servili ghas-shubija. Ghalhekk l-UE qed tibghat messagg lill-Gvern li galadarba ma ghandux zmien legislattiv bizzejjed biex iwettaq il-progett ahjar ifittex mandat gdid biex b`hekk ikollu zmien twil bizzejjed biex il-progett iwasslu sa tmiemu. Hemm ukoll il-vantagg li Gvern Nazzjonalista ifittex mandat gdid qabel ma l-affarijiet ikomplu jehzienu ekonomikament. `Jemmnu li jekk jaqla` xi ftit inkwiet bhal tat-tarzna idawwar l-opinjoni pubblika bizzejjed biex jerga jikseb maggaoranza li ttih hames snin zmien biex iwettaq il-progett ta` l-UE.

Din l-ghazla izda ma tantx iddoqq ghal Prim Ministru u shabu tal-kabinett. Jaf li minkejja dak li jinghad fil-berah il-poplu llum ihossu ttradut mil-weghdi foerha li saru fl-1998 u jekk jinghata c-cans il-poplu jibghat lin-nazzjonalisti fejn jixirqilhom.

Li allura thalli biss l-ghazla li hija l-aktar fil-fizonomija ta` l-ispirtu nazzjonalista. Taghmel xejn, kompli pacpac u halli zmien ghaddej u forsi xi soluzzjoni taqa` wahedha mis-sema. Din hija t-tielet ghazla li jidher li l- aktar probabbli li jimxi fuqha il-gvern. Kompli tkellem ma l-UE u wiehed li fi zmien fil-vicin meta jispiccaw in-negozjati jew ikunu avvanzaw bizzejjed tiddeciedi jekk tmurx ghal referendum jew elezzjoni izda fil-fatt tikkommetti ruhek ghal xejn u zomm miftuha it-tielet ghazla li ma taghmel xejn u thalli l-affarijiet ikaxkru biex tibqa` tgawdi l-poter sa l-ahhar.

Tahdem kontra din l`ghazla hemm il-probabbilita` li ta` l-UE jitilfu l-fiducja li gvern nazzjonalista jista jwassal il-progett ta` shubija sat-tmiem kif ukoll il-possibilita` li l-gvern ikollu problemi biex jghaqqad budget sensibbli ghas-snin li fadal bla ma jkollna kraxx fl-ekonomija.

Dawn huma t-tlett ghazliet li ghandu quddiemu l-gvern u li tant hu konfuz dwarhom li skond kif jiftillu l-Prim Ministru jbiddel il-prijorita` skond il-burdata li jkun fiha. L-ghazla li hija l-aktar fl-interess tal-pajjiz hija cara dik ta` elezzjoni. B`hekk il-pajjiz ikollu gvern b`mandat car ta` progett politku` u bi zmien twil bizzejjed biex jezegwih. Il-pajjiz jerga jikseb il-fiducja u sens ta` direzzjoni li issa ntilfet ghal kollox ikun x`ikun ir-rizultat.

Izda dan ma jfissirx li n-nazzjonalisti jaghmlu l-ghazliet taghhom skond l-interess nazzjoanli. Jekk tharsu lejn id-dejn li akkumulaw kemm ilhom fil-gvern bizzejjed biex tifhem li l-interess nazzjonali ghan-nazzjonalisti huwa sekondarju ghall-interess tal-partit.

Friday, 2 March 2001

Porgnosis without prescription

The Malta Independent

Prognosis without prescription

For stating the obvious that the country has been living beyond its means for years on end, I and fellow writers who owe nothing to the government and refuse all accommodation meant to prejudice our freedom to criticise with objectivity, have been labelled as Geremiahs and Cassandras by this administration.

We have now been joined by` the Central Bank Governor Mr Michael Bonello. In reality former Governors Galdes and Vassallo had during their tenure issued similar warnings which clearly went unheeded.

Last November I had Criticised Governor Bonello for failing to address this serious issue in the presence of the Minister of Finance during the bankers annual dinner just before the budget.` I had exactly written:

..the Governor offered little or no views on the present state of the economy. The continued creep in Government recurrent expenditure, the widening gap in the balance of trade, the lacklustre tourism performance, the dearth of new foreign direct investment, the falling productivity of labour resources as the employed ranks continue to swell in a disproportional relationship to economic growth, the unfunded pension obligations,` all these for the Governor were unworthy of his good advice to the government.

This is a serious omission. The Central bank`s primary objectives of price stability and healthy financial system can only be achieved in an effective manner if the economy grows in a sustainable well balanced manner. This would avoid the need for the Central Bank to tighten its monetary policy to make up for excesses in government`s fiscal policy.



During last week public breakfast talk Governor Bonello made up for half his former omission. The correct half was a frank and emphatic identification of the problem of living beyond our means with resulting chronic deficits in the public budget and the country`s balance of payment. Governor Bonello, welcome to the rank of Geremiah and Cassandra!

The missing 50% was in the prescription for the identified malady. If the country is living beyond its means than it can only address the problem if it cuts back its life style to within its means.` One of the most effective ways of doing this is by using the devaluation tool. No other economic tool is more powerful and effective provided devaluation is` accepted for what it is, a reduction in the country`s standard of living versus the rest of the world.

Rather than reject outright the devaluation tool the Governor should have underlined that this would only be really effective and lasting if it forms part of a national economic re-structuring package which wins the support of the Unions. This would avoid` wage claims which would turn devaluation into an inflationary spiral requiring further devaluation. Rejecting devaluation outright is indicative of absence of real determination to tackle the problem until a crisis forces us to the unavoidable.