Budget 2023 - lacking a much-needed economic safety net

REBEKAH BORG, PN SPOKESPERSON FOR LANDS AND CONSUMER RIGHTS

Adversity breeds innovation and invention. The past few years were dominated by the pandemic, and more recently, the war which broke out between Russia and Ukraine.

The pandemic has taught us the real meaning of ‘no man is an island’, and how our everyday life can be challenged by circumstances beyond our shores. The comfort which we held, often subconsciously, was lost, and what followed was the stark realisation of reliance on outside sources when it comes to the energy and agricultural sectors. The war continued to reinforce these concerns.

As the energy crisis bites deeper, it is evident that the Government’ s plan for the 2023 Budget was to focus its expenditure on maintaining stable energy prices. Inflation, currently hitting all of Europe, purports to be another basis for the expenditure planned for 2023. The Government’ s focus on people’ s spending power seems to provide evidence for this.

While the government’s decision to maintain stable energy prices is positive, it is clear that this is a short-term solution. This is the general sentiment for the Budget presented for 2023 by this Government. For how long can the Government maintain energy prices at the current rate?

The importance of renewable energy, thereby decreasing our reliance on outside energy sources, has become even more important. The percentage of consumption coming from renewable sources, however, remains alarmingly low. This leaves us exposed to the volatility of international energy prices. A long-term energy plan is needed.

This is not to mention the challenges of climate change which we continue to face regardless of the political situation. We need Government to seriously invest in renewable energy production and reduce energy demands, especially through improved energy efficiency by retrofitting existing residential and public buildings.

Buildings are the biggest culprits of energy consumption, globally accounting for 40 percent of all greenhouse gas emissions. That makes them both the largest contributor and the key solution to mitigating climate change. Incentivising energy efficiency, especially by using cleaner modes of transport, did not go beyond an existing scheme. Electrifying our current fleet of vehicles is a step in the right direction but we cannot stop there. The current crisis provides us with the perfect opportunity to set a muchneeded plan into motion.

Apart from a cushioning to the current economic problems, our quality of life - what impacts us on a day-to-day basis - was not addressed. For example, the Government’s plans for the urban greening project seem to be off to a slow start with just 10 million euros allocated for the next year from the 700 million euros that were promised over the current five-year legislature.

Short-term planning has also been evident when it comes to road planning. Government seems to have come to terms with the fact that, despite the intensive investment made in the previous years to widen our roads, this was not the solution. Traffic congestion is still a dominant issue and, while the proposal limiting certain vehicles before 9 am confirms this, it is not enough to alleviate the problem.

Short-term solutions are important to ease imminent pressures, but in the long term, short-sightedness is dangerous. This Budget lacks economic vision with no plan for sustainable growth, and no new economic niches presented. Innovation should have been the focus of this Budget thereby ensuring we can bear any economic turmoil thrown our way in the years to come.

Preservation and growth of a private sector that does not depend on public funds is necessary to instill economic resilience. A solution must be found to the lack of human resources plaguing the private sector, purported by many talented individuals leaving the country.

In the short-term, the Budget might have met 2023 expectations, but this Budget does not only impact 2023 but the years to follow. The future brings with it uncertainties, especially with a recession looming on the horizon. The recent adversities should have taught us how quickly things can change, and that long-term planning is key to overcoming such adversities, but instead, this Budget has only dealt with the here and now. n

“Buildings are the biggest culprits of energy consumption, globally accounting for 40 percent of all greenhouse gas emissions. That makes them both the largest contributor and the key solution to mitigating climate change. "