Issue link: https://maltatoday.uberflip.com/i/1522936
3 maltatoday | SUNDAY • 23 JUNE 2024 NEWS procedure. Is it something to worry about? STAY SAFE IN THE HEAT KEEP OUT OF THE HEAT Stay indoors and in a cool place during the hottest time of the day. EAT LIGHT MEALS Eat hydrating foods like watermelon and cucumbers. WEAR LIGHT LOOSE CLOTHES Walk in the shade, apply sunscreen and wear a hat if you go outside. HELP OTHERS Check on older adults, infants and young children and those suffering from chronic conditions. STAY HYDRATED Drink plenty of water even if you are not thirsty. Avoid alcohol and caffeine. KEEP YOUR HOME COOL Close windows & shutters/blinds during the day and open them when it is cooler. SLOW DOWN Plan your physical activities for the coolest time of the day. SEEK MEDICAL ADVICE If you experience any heat related symptoms, like dizziness, nausea, vomiting and muscle cramps, call 21 231 231. The European Commission has acknowledged these concerns and allowed for a temporary relaxation of the rules. However, Fabri says the challenge will be in recalibrat- ing these rules so that they remain fit for purpose in a changed eco- nomic environment. "A more nuanced approach that considers the quality and purpose of public spending, rather than rigid numerical targets, could bet- ter serve the long-term interests of the EU economies, including Mal- ta," he says. Von Brockdorff points out that new fiscal rules introduced this year have some flexibility built into the system, but ultimately, mem- ber states need to demonstrate a strong commitment to satisfying the 3% deficit threshold. "Arguing against the merits of fiscal stability is futile. However, if countries resort once more to austerity measures as happened in the last financial crisis, this would put the EU's green deal and the shift towards more sustainable economic growth at risk, besides making millions of EU workers worse off than today," he says. "Despite being in a much weaker position now, I am certain trade unions all over the EU will not want to see a repeat of the after- math of the financial crisis." Deficits: an economic bogey- man? A deficit means the government is spending more than it is receiv- ing in revenues. But economists agree that this is not necessarily a bad thing, so long as the deficit and public debt remains sustainable. "[Deficits] can be a useful tool for stimulating economic growth, especially during periods of eco- nomic downturn or when public investment is needed to support long-term growth prospects," Fab- ri says. "The key lies in the purpose and sustainability of the deficit." However, a deficit can become problematic if it ends up under- mining investor confidence or leads to unsustainable debt dy- namics. "A deficit is particularly concerning if it is driven by struc- tural imbalances rather than tem- porary factors. If a government continuously runs deficits to fi- nance current consumption rath- er than productive investments, it can lead to a build-up of debt without corresponding economic benefits, eventually necessitating painful adjustments," Fabri says. Von Brockdorff says sustaina- bility can have various interpreta- tions, but the EU considers the 3% deficit threshold and 60% debt-to- GDP level to be fiscally sustainable. "We may actually satisfy this pace at some stage next year (and pos- sibly totally in three years' time) and this actually would ease pres- sure on the Government's policy response. "However, a gradual reduction of the deficit and eventually re- turning to surpluses should be the target for the government, inde- pendently of the EU's new fiscal rules. The worldwide economic outlook remains uncertain, and we need to return to surplus budgets at some stage in the future to deal with the next international eco- nomic crisis." Economist J.P. Fabri (left) and Economics professor Philip von Brockdorff