Said – crisis no impact, social partners disagree

After the Malta Council for Economic and Social Development (MCESD) met on Wednesday afternoon Minister Chris Said said that the political crisis is not having any economic impact on Malta. MCESD met at the request of the general Workers’ Union (GWU) to discuss the political crisis and instability in the country after government scraped through a no confidence vote in Parliament thanks to the casting vote of the Speaker.  Six weeks ago MP Franco Debono said he was withdrawing his support for the government and called on Prime Minister Lawrence Gonzi to resign, be replaced or call a general election.

Since then the government has kept away from facing a vote in parliament.

Minister Said said that MCESD has no remit to discuss the political situation in the country.

GWU’s General secretary Tony Zarb does not agree as the country’s political instability is having an impact on the economy. He said that uncertainty is having an impact and companies are dragging their feet to conclude collective agreements and investment is being kept on hold as investors adopt a wait and see attitude.

Union Haddiema Maghqudin secretary Josef Vella also thinks that what happens in politics has an impact on the economy. Even Confederation of Malta Trade Unions President William Portelli said that the political difficulties must not be allowed to have an impact on the economy.

Malta Hotels and Restaurants Association representative George Micallef said that he expressed the concern of the delicate tourism sector about the present situation.

While the MCESD meeting was going on, the President of the Forum of Maltese Unions John Bencini held a press conference protesting against the Forum’s exclusion from MCESD. He said that there is tangible uncertainty in the country and that the government needs to be bold and take the necessary decisions and ultimately it is up to the Prime Minister to solve the crisis that his government is facing. He referred to Moody’s downgrading of Malta’s credit rating and said that when an agency like Mood’s gives a positive report about Malta, government says it is credible, when the report is negative government says it is not fair.