In a perfect storm; a social Budget for Growth

No one in his right senses can deny the fact that Europe, and indeed, the entire global trade system is being hit by a perfect storm. Almost three years of Covid-19 which battered the world’s economies, as soon as it seemed that at last, the pandemic was receding, Russia invaded Ukraine and this war dealt a second blow to the global economy and as in all wars, inflation, sanctions, scarcity of energy and food supplies, brought the recovering economies on their knees.

DR IAN BORG, MINISTER FOR FOREIGN AND EUROPEAN AFFAIRS AND TRADE

We are seeing robust economies reeling and failing to meet successfully the challenge of rising inflationary prices of energy. If we take a look at the situation of energy prices in all our EU partners, we see that what their respective peoples expect from their government is that, at least, they reduce the back-breaking hikes on their energy bills. To mention, but one example, our neighbour Italy, the most urgent crisis that the new Meloni Government is expected to tackle is to reduce the utility bills, as not only these are the cause of all evils for Italian families, but are also closing down small enterprises which are the backbone of the industrialized regions of Milan, the Veneto, Friuli-Venezia Giulia and Toscana.

I am proud to be part of a government which since 2013, when it took over the reins of the country, has not only reduced taxes and desisted from imposing new ones, but practiced a policy of economic growth which has, in turn, created growth and trade, by creating wealth, annually increase a net of social security for every sector of our society and introducing every social measure possible to enable the wage earners to join an expanding middle-class.

Even this year of war, sanctions, energy crisis and failure of entire transport systems, the government continued to fork out billions of euros to keep energy prices and foodstuffs down; to help industries, commerce, businesses ride the storm; to hike extensively social services payments; to increase pensions; and to make life better for all sectors of our community. As Minister responsible for trade, I would never be able to assist Maltese exporters to find markets, if these same exporters are nailed by rising energy prices and an uncompetitive environment.

My responsibility for trade and commerce is a heavy load to carry in an Island-State like ours. Besides the other difficulties which continental economies have to face, insularity is to be taken also in consideration. Imports and exports depended almost totally on marine transport. For this reason, the government is also introducing aid initiatives to balance the ever-rising sea-transport systems.

Up to now, I have served in the Trade Ministry for less than eight months, but all the same, we have already carried the flag in the Gulf States, Saudi Arabia, Japan, Brazil and other states to negotiate ways and means to increase reciprocal trade.

I have always believed in the individual and that free enterprise creates wealth. And wealth fosters trade and trade creates even more wealth and good jobs. The state’s duty is to use its power to assist industry and to promote trade through its activities. So, it is obvious that as soon as I was given the political portfolio for this sector, I gave top priority to the promotion of the export trade sector. As in every human activity, we have to commit ourselves wholly to our task sow diligently and take good care of the field. It is only thus that we can wait convinced that we will reap a rich and plentiful harvest. And we will. n

“I have always believed in the individual and that free enterprise creates wealth. And wealth fosters trade and trade creates even more wealth and good jobs."