Monday, 17 September 2012

A false start for Simon

In confirming his intention to contest the general elections on the PN ticket Simon Busuttil (SB) has slipped twice.  This does not augur well for his bringing about change to  the PN's dismal standings in current polls.

Firstly and rather immodestly, SB did not outrightly deny that he has party leadership ambitions but merely dismissed the claim that he is the anointed one.  

His thesis that if he had party leadership ambitions it would have been better to join the parliamentary group after the elections makes little sense,  unless he thinks that he can imitate Joseph Muscat in contesting leadership without having a parliamentary seat.   Not having a parliamentary seat was a disadvantage for Joseph Muscat and it would be infinitely easier for SB to contest PN leadership with credentials of a solid performance at the polls in the the general elections.

But more serious is the claim made by SB that

"the country would be knocking on Europe’s doors for a bailout within a year or two if Joseph Muscat lives up to his promises"
This is undiluted political scaremongering typical of the PN's DNA that they have a God given right to govern this country no matter how well or badly they perform.  It is typical arrogance that we know best and the others are children of a lesser God.

Firstly the PN have been demanding PL to be  specific about their policies in government as so far the only specific promise made by Joseph Muscat is to reduce utility rates without actually explaining the quantum involved.   So how can SB deduce that with Labour's promises we would be asking the EU for a bailout within a year or two?

Secondly those who ask for a bailout are countries who finance their borrowing internationally.   In Malta thanks to the people's strong culture of thrift, all financing is internally generated and gracefully the economy is liquid enough for our banks and households to have spare liquidity to invest in foreign securities.    As I often explain to my followers I am not so concerned about the sustainability of our national debt because though we have a high public sector debt this is more than made up by private sector savings so that as a country we are net lenders not net borrowers. 

So how can we be forced to demand a bailout, unless SB means to taunt a democratic mandate and from the Opposition as the new Leader of the PN would organise a policy of obstructionism asking the PN followers to draw their deposits from local banks to invest away from our shores in order to force the Malta government to seek a bailout.

SB had better explain what he meant and how he came to the conclusion that Labour would be forced to seek bailouts, as otherwise he has painted himself as a serious threat to democracy, which does not augur well at all.


  1. Very easy answer to this question. How can Joseph Muscat subsidize the water and electricity rates without blasting our deficit into a wall of no return? It is only with tangible and credible, financial projection backed proposals that the MLP can quell any PN 'scaremongering'... otherwise that scaremongering is justified. Would you as an investor leave the reigns of your organization in the hands of someone without a business plan and a track record?

  2. I beg to differ. Until the PL indicates how much the water and lectricty rates will be subsidized no one can make the argument that the PL's policy would force the country to seek a bailout. Let's say that a figure of Eur 20 million is identified and at the same time recurrent expenditure economies for same value is identified, would that break the bank?

    As to leaving the reigns of the country ( you do not run a country the way you run a business - if you doubt that study Keynes) only to those with track record, than we can just as well bury democracy.

  3. One word. Credibility. Without tangible proposals there is no credibility.

    Kif qal l-MP Laburista Adrian Vassallo... Joseph Muscat: il-politika ta' niehdu l-poter... umbaghad naraw.

    Families should not trust their future in someone who wants to rule, by admittance of his own MPs... 'spirtu pront'. And don't accuse me of scaremongering.

    People do not need the PN to be scared of someone who wants to rule 'spirtu pront', kif iqum filghodu and without a concrete proposal laden plan for the country.

    The onus in on the MLP to climb the credibility ladder.

  4. PS. I'd rather Friedman than Keynes.

  5. Friedman on the Euro Crisis. What does Simon think of this?:

  6. "How can Joseph Muscat subsidize the water and electricity rates without blasting our deficit into a wall of no return?"

    May we refer to a previous blogpost by Alfred: