Moody's downgrade: AD expresses concern

Alternattiva Demokratika – The Green Party noted the downgrading of Malta from A1 to A2 by Moody’s, which also predicted a negative outlook.

Michael Briguglio, AD Chairperson and Spokesperson for Economy and Finance said: “AD notes with concern the downgrading of Malta’s economic outlook by Moody’s. Whilst we note that to-date, Malta has proven to be relatively resilient to the global economic crisis, utmost importance should be given to the opinion of Moody’s and other global financial and economic institutions. As a small island state in a global economy, Malta is highly influenced by external economic factors which are beyond our control. It seems to be the case that Moody’s outlook gave high importance to the fact that Malta is caught in the midst of economic crises in the euro-zone”.

“Yet there are other factors which require utmost priority. We support measures that improve fiscal discipline and which properly manage budgetary deficits and public debt. Government’s expenditure programmes should be sustainable whilst aiming to improve environmental, social and economic targets, thus resulting in  higher educational standards, increased work opportunities, including for vulnerable groups, and more purchasing power. A sustainable spending programme should also be matched with a sustainable source of Government revenue”.

“In particular, AD believes that Malta should stop being over-dependent on unsustainable real-estate and on sectors that are based on speculation. Property speculation should be taxed from third vacant property onwards. Increased investment in green jobs and discouragement of wasteful energy use are also important  for a sustainable economy”.