Wednesday, 25 January 2012

Tonio's grasp on the economy

Tonio's grasp

Minister Tonio Fenech accused Labour that it has poor grasp over the economic situation.   This implies that he has a firm grasp.  You want proof?   Consider these:

  • In the Budget speech of 14th November he predicted that Malta's economy will grow by 2.3% in 2012.  IMF said it will grow by 1%.  He now explains that the international macro-environment has worsened since the Budget.  This is untrue.   The US economy is doing better.  The Greece problem is cruising towards some solution.   The ECB has flooded the market with liquidity to remove risks of credit crunch.  It was just undue optimism on his part.
  • The EU forced him to shave off Eur 40 million expenditure.  We still don't know which votes will be hit by the fiscal axe.

  • Air Malta will not only not repay the EUR 52 million loan as predicted in the budget but needs many many millions to finance its restructuring.

  • Enemalta published its 2009 on the quiet showing gross losses on hedging and no answer has been forthcoming on the exploding debt of Enemalta ( over 700 million euro) guaranteed by the government outside the budget which can never be repaid except by the taxpayer  ( just like the bank loans of shipyards guaranteed by government which had to be funded at taxpayers expense).
Show us your grasp Minister!!  Admit that the 2012 Budget is dead in the water and present another one before going for elections.   We might learn something which improves our grasp over the economic situation.

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