Issue link: https://maltatoday.uberflip.com/i/1501168
THE more time passes, the more I conclude that the current ad- ministration is rudderless. It has no overall direction with most ministers working on their own. The authority of the captain of the ship is missing. Last Monday, Silvio Schembri Minister for the Economy, EU Funds and Lands, told the Times of Malta that Malta's economic model is being adjusted to attract foreign investment that takes up less land and requires fewer workers to generate econom- ic growth. However, Schembri insisted that Malta's economic model does not need to be com- pletely changed. He gave no de- tails of any 'adjustments' in poli- cy in this regard. Schembri added that gone are the days when the country had to accept any and all foreign invest- ment for the economy to grow. It could now be selective in the in- vestment it accepts and is focus- ing particularly on the pharma- ceutical industry, which creates more value-added work while taking up less land and employ- ing fewer, more highly-skilled workers. He defended his position by in- sisting: 'You change something that is failing. But our economic model worked and is still work- ing, so much so that we're en- joying one of the highest rates of economic growth in Europe.' Schembri ignored the fact that the Maltese pharmaceutical in- dustry - which is the brainchild of former PN governments and which is an undisputed success - does not really reflect the current Maltese economic model. It depends on the input of the highly-qualified professionals that our university is producing. On the other hand, most other investment initiatives - including those supported by government by selling them state owned property at subsidised prices - are now completely dependent on cheap labour provided by im- ported third country nationals, mostly coming from poor Asian countries. The tourism and entertainment industry as well as the construc- tion sector are classic examples. Schembri's opinion on our eco- nomic model clashes directly with that of Finance Minister, Clyde Caruana, who is worried about the rapid increase in pop- ulation. During a recent Malta Institute of Accountants confer- ence, he argued that Malta needs to find a new economic model because the current one is un- sustainable. While Caruana says that we don't just need to rethink and reform as we need structural change, not mere reform, Schem- bri says that Malta's economic model does not need to change. It just needs to be adjusted to re- flect the country's current needs. Referring to the Nationalist Party's pushing for a change in Malta's economic model, Schem- bri said that this was not the gov- ernment's vision. Caruana said that if we contin- ue on the current economic path, our population will have to in- crease to 800,000 by 2040. Native Maltese will then be a minority in their own country. But this preposterous scenario does not worry Minister Silvio Schembri, it seems. Such a serious open clash be- tween two Cabinet members - the Minister for Finance and the Minister for the Economy - is unheard of in any country, let alone among the EU member states. Personally, I think Minis- ter Caruana is completely right, but that is not the point. Although Schembri made no reference to Caruana's speech, it is obvious that this is an open clash between the two Cabinet ministers and this reflects badly on the leadership of the Prime Minister. At the end of the day, the buck stops at his door. What does the Prime Minister think about this incredible clash between two of the ministers he appointed? Does his vision of Malta's future feel threatened as pointed out by Minister Clyde Caruana, or does he think we on- ly need small adjustments to the current model as Silvio Schembri insists? Which way is the country being led? The PM did not say. Sometimes he just spouts out empty propa- ganda and whenever he is posi- tive about Malta's economic fu- ture he does not delve into such niceties as our economic model, knowing fully that the average Labour voter is only interested in receiving cheques. Discussions about economic models do not provoke food for thought for many voters. And the Prime Minister's main concern seems to be whether the polls are confirming his safety in the posi- tion he occupies. The lower paid Maltese workers depend on state jobs - also known as handouts - now even more than ever, as trying to compete with imported cheap labour is useless. The Prime Minister should re- alise, however, that sustaining the wrong economic model will eventually lead to the party in government losing votes because people will eventually be directly hurt. But in the current econom- ic model that Malta has adopted, it seems that nobody cares about tomorrow. Meanwhile the country plods on, rudderless. * * * * * Viennese waltzes A recent contribution on Aus- trian politics published in The Economist gives an interest- ing insight on the goings-on of Austrian politics. Austria is the EU's 14th biggest member state. The author of the weekly column on European affairs - signing under the pseudonym 'Charlemagne' says that 'A slew of corruption scandals has rum- bled on nearly uninterrupted since 2019. Confidence in the country's body politic has col- lapsed: the chancellorship has changed hands five times in the past six years, a rate not even It- aly nor Britain has been able to match.' Then he goes on to write that: 'In 2019 a leaked video showed the then vice-chan- cellor, Heinz-Christian Stra- che, chilling in Ibiza with what he thought was the niece of a pro-Kremlin businessman. In it, Mr Strache, then also leader of the migrant-bashing Freedom Party, suggested that his new chums should take over Aus- tria's most popular tabloid and turn it into a hard-right mouth- piece; in return they would be granted juicy government con- tracts.' An official investigation has reportedly claimed that text messages sent by 'political grandees' paint a picture of the political elite 'indulging in everything from dodgy party fi- nancing to placing pals in lucra- tive jobs, bribing journalists or steering tax authorities to their advantage'. Many persons are being probed, even the former Chan- cellor Sebastian Kurz who stepped down from the post of Chancellor in October 2021, aged just 35. He denies any wrongdoing. The growing popularity of the Freedom Party in Austria is be- ing ignored by the mainstream press in Europe. Meanwhile, it has also grown closer to Russia. Its MPs slowly walked out of Parliament dur- ing a recent video address by Ukrainian President, Volody- myr Zelensky. Enough said. 7 maltatoday | SUNDAY • 11 JUNE 2023 OPINION A rudderless administration Michael Falzon micfal45@gmail.com Finance minister Clyde Caruana insists Malta needs to find a new economic model because the current one is unsustainable