Issue link: https://maltatoday.uberflip.com/i/1044434
13 maltatoday | SUNDAY • 28 OCTOBER 2018 track. And so we will not stop," Di Maio said. Home affairs minister and Lega leader Matteo Salvini re- plied in similar vein: "Let the s p e c u l a t o r s be reas- sured, we're not going back," he said. In comments to this newspa- per, former Bank of Valletta chair- man John Cassar White* said the non-acceptance of the Budget showed both Brussels' obli- gation to uphold Maastricht rules, but also the populist Ital- ian government's right to carry out its mandate. Describing an Ital- ian financial crisis as a potential "ex- istential" problem for the EU, he said the Commission must deal with the matter, or risk the collapse of the eurozone. "The Commission is in a fix. Italy is the first major country in the eu- rozone area that is defying the authority of the Commission by blatantly ignoring agreed fiscal rules. On the other hand, the Italian government has a clear political mandate to put an end to austerity." Cassar White said that in the "likely" possibility that the Ital- ians do not budge and push on with the implementation of its Budget measures, the Commission would eventually impose monetary sanctions against Italy. "It is more than probable that the new Com- mission [due to be appointed in 2019] will have to deal with this situation. The biggest risk is that other EU member states will consider Italy's stand as a precedent when they find themselves on the receiving end of their electorate's an- ger and frustration in tough economic situations," he cautioned. "The next year will be a ma- jor test for the EU's quality of leadership. The eurozone will implode if the EC once again kicks the can hoping that the Italy issue will resolve itself. The Italian financial crisis could well prove to be an ex- istential problem for the EU, which has been limbering on from one crisis to another without tackling fundamental governance reform." Burning down the house Compared to other eurozone members, Italy's economy is huge, University of Malta economist Philip von Brockdorff under- lined, with only Germany and France being big- ger. Any macroeco- nomic problems created by an Ital- ian Budget that goes against the rules of the EU's stability and growth pact will have an impact on the euro area, especially considering the state of the vulnerable econo- my right now. "If you have a similar situ- ation in Italy as there was in Greece… this shows the vul- nerability of a common cur- rency, where monetary policy is still centrally devised, but fiscal policy is still in the hands of the member states," he said. When it comes to Malta, any instability in the eurozone would affect our island, Von Brockdorff said. "We cannot forget that Italy is one of Malta's biggest trading partners. If there is an eco- nomic crisis in It- aly – in an economy which to date has not man- aged to reach the same level of growth it had before 2008 – this will bring the eurozone down as well, because of the sheer size of the Italian econ- omy." Turning to the wider picture, the economist said that anoth- er recession was on its way. "After the 2008 recession, we had a recovery, and we've now reached the end of that. I think we are now heading towards another global downturn," he said, "The signs are there al- ready and the level of debt of many countries worldwide has actually continued to grow." Von Brockdorff said markets are losing their value because there is fear of another world- wide recession. "It may not happen this year, but it will be happening in the next couple of years, if not earlier. If you have this wider situation – which makes the eurozone weaker because of it – when serious problems in Italy are added to it, there is the risk of a major crisis. Eve- rything is part of a chain," he warned. "That is why the Commission is intervening in Italy's case. But then people say it should mind its own business," Von Brockdorff remarked, surely an observation on the eurosceptic climate it faces in Italy. Budget could be unconstitutional The EC's request for a re- vised Budget, which has to be completed within three weeks, is a historical first and one former Italian MP – the former AD chairperson Arnold Cassola – says the effects will be felt on Malta. Cassola, an MP for the centre-left between 2006-2008, said it's a situation that causes more problems for the EU at a time when Eu- rope is not in many Italians' good books. "There might, on the other hand, also be an issue of un- constitutionality… in 2012 Italy adopted the EU's fiscal compact into the Italian con- stitution. So, for the past six years, it has been part of con- stitutional law. There is inter- nal opposition to the Salvini Budget because of this matter," he said. Cassola has warned that Italy cannot be made to suffer aus- terity measures as had been done in Greece. "The right bal- ance has to be found between a reasonable Budget which does not go much beyond the targets, but also ensuring there is enough maneuvering space to be able to create work in a country which has a big prob- lem with unemployment, espe- cially among young people." Contrasting with Cas- sar White's opinion, Cassola was hopeful that good sense would prevail and that Italy would carry out changes to its Budget. "I think there might be some corrections, because Fi- nance Minister Giovanni Tria, who happens to be more or less a moderate, has said some changes have to be affected," he said. mcosta@mediatoday.com.mt * John Cassar White is com- menting in his personal capac- ity as a financial consultant, but not in the name of any organisation he is involved in. NEWS Appropriate training for the role will be provided. Based on their surveying experience, candidates may have an immediate opportunity for promotion to the post of Survey Interviewer II with an annual salary of €16,945 as from 1 January 2019. A covering letter, a detailed CV together with a copy of qualifications is to be sent to personnel.nso@gov.mt. C A R E E R O P P O R T U N I T Y The National Statistics OŒce is looking for interested candidates to join its team of survey interviewers at the Malta International Airport, collecting data for the Tourstat survey. The survey is the main source of information on tourism statistics. The post is on an indefinite contract basis and has an annual salary of €14,867 in addition to allowances of approximately €4,000 per year attached to it as from 1 January 2019. Requirements include • Matsec/similar examination boards Ordinary Level passes in four (4) subjects of which preferably three (3) in di›erent languages • An aptitude for interviewing techniques and procedures; • An ability to follow instructions as guided by team leaders; • Strong interpersonal, communication and organisational skills. • An ECDL certificate will be considered as an additional asset. Full-Time Survey Interviewer Key Responsibilities • Carry out face-to-face interviews in-line with set methodologies; • Enter collected data electronically into a computer; • Carry out other tasks as may be assigned by the management. Working Conditions The successful applicant will work on a 12-hourly shift basis (day-night-rest- o›). Alternative working arrangements will be considered. Survey Interviewers must be logical, methodical and discreet in their dealings with interviewees. Jobsplus Permit – 397/2017 | Jobsplus Vacancy - 322639 John Cassar White Arnold Cassola Philip von Brockdorff Italy: G8's sluggish giant The EC's decision comes in the context of a country which has been facing years of a gravely underperforming economy. Despite a GDP upturn with growth of 1.5% last year, it's barely a drop in the ocean in so far as solving its economic woes with debt at 130% of its GDP. Comparably, Malta's is way healthier at less than 50%. In 2017, Italy's real income per capita was only marginally more than it stood almost two decades prior, in 1998. So living standards have struggled to rise above the levels they were in the late 1990s. Additionally, 37% of young people in Italy are unemployed, and recessions in 2008 and 2012 have had lasting effects on the country. Austerity measures following the recessions contributed to the problem. Clearly, Italy's high levels of debts are the result of acute structural problems. The Commission is in a fix. Italy is the first major country in the eurozone area that is defying the authority of the Commission by blatantly ignoring agreed fiscal rules