PM calls success over previous years an ‘economic miracle’
Prime Minister Joseph Muscat yesterday called Malta’s recent economic success under the Labour administration an “economic miracle”.
He explained how this government has focused efforts on creating a strong economy that can withstand external shocks, rather than wasting time on concentrating solely on the possible fallout of a number of unfavourable events, such as the decision by citizens of the United Kingdom to leave the EU, and the “heavy handed” measures already carried out by the newly elected President Donald Trump.
Dr Muscat referred to Moody’s, a private economic rating agency, and its praise of Malta’s economic progress, and said that this shows how this government has concentrated on “fixing its own roof,” rather than on external events.
His address came during a conference addressed by CEO of the Confederation of British Industry Paul Dreschler, Stefano Mallia from the Malta Chamber of Commerce, Enterprise and Industry and himself, on the future of businesses in a post Brexit world.
The Malta Independent was official media partners of the event, ■
which seeks to discuss matters of trade, economics and competition in an ever-changing, fast paced world.
Dr Muscat spoke of the number of different scenarios that have been studied in a post Brexit world, but ultimately intimated that a strong economy would be the tool to withstand any external shocks.
While studying the scenarios that the world is currently experiencing, Dr Muscat said that it is not possible to stop the negative aspects from emerging, but that being prepared for them goes a long way.
Dr Muscat believes that the decision by citizens of the United Kingdom to leave the EU reminds “us that our citizens are always sovereign and we should be listening to their pleas”.
He tied this in with his belief that ignoring the aspect of “social Europe” could have contributed to widespread anti EU sentiment across member states, and called for a renewed approach that would bring politics closer to the people.
The fact that there have been a number of developments, which cannot be viewed in isolation, was stressed, along with anticipated the different outcomes of near-future elections in key member states. He called for all to analyse the “new bigger picture” in its entirety.
He noted the number of economic achievements in Malta’s recent economic history, such as foreign investment for the year 2016 was 50 per cent higher than the whole of 2012 (the final year of the previous Nationalist Party government).
Dr Muscat condemned Mr Trump’s “heavy handed” approach on a number of issues he has tackled in his first days in office.
An emphasis on an inferior deal for the UK was made, and Dr Muscat further elaborated on how this deal should be inferior from the viewpoint of the EU, but does not necessarily have to be the case for the UK.
He was surprised at the resilience of the British economy, for experiencing that huge shock without any major economic impact.
Mr Drechsler made it clear that a bad deal in terms of UK’s businesses access to the EU markets, or various facets of it, would be a bad deal for businesses across all member states.
He stressed the need for UK businesses and EU ones to work closer than ever before, to understand each other’s differences in order for there to be more unity, and therefore a better deal for all.
Mr Drechsler is a CEO of the confederation for British industry, which represents, both directly and indirectly, about one third of the UK’s private sector businesses.
“This is not the result the majority of the business community wanted. Like Malta we are a democracy and now as businesses, as always, we will adapt to the new challenges and we will turn our minds on how to make success of this new opportunity.
“The CBI is under no illusions, we know negotiations will be challenging. Make sure you remember this: the months and years ahead we need to make sure that firms can keep trading openly and freely must be our number one priority as a business community.”
Turning to the UK’s Prime Minister’s recent speech that gave further clarity as to the UK’s demands, he said:
“For one thing we can be certain whatever the shape of the final deal will be, it will have real implications on businesses not just in Britain, but in businesses across the EU. Therefore it has never been more important for the business community to work together.
Mr Drechsler and CBI’s director general are touring business communities across the EU in order to bring more closeness, and inadvertently help place pressure on member states through their own business communities to allow for UK businesses to have better access to the EU market.
“The better we understand each other and culture differences, the better we can work together. We have to get on with our businesses and make them grow.
“Theresa May wants to ensure the rights of EU citizens in Britain and vice versa. It’s about human social values, not about using people as political pawns. Whatever immigration system the government sets us on, what’s important is that EU businesses operating in Britain should have access to the best talent around the world.
“By ruling out membership to the single market, Mrs May has limited her options for barrier free trade with the EU. An ambitious trade deal between EU and UK can deliver results in the interest of both parties. It means ensuring the strong regulatory framework match yours.
“The UK could end up without a deal, and use WTO... It is clear that WTO rules would be bad for firms in this room.
“There is a unique opportunity to shape a new world post Brexit that can be good for all, we must defend our openness. My message today would be not to take openness for granted, but discuss why access to people and markets matter,” he concluded.