Issue link: https://maltatoday.uberflip.com/i/786708
maltatoday, WEDNESDAY, 15 FEBRUARY 2017 11 Business Today www.creditinfo.com.mt info@creditinfo.com.mt Tel: 2131 2344 Your Local Partner for Credit Risk Management Solutions Supporting you all the way Minimum wage not consistent with Malta's economic growth Greek economy shrinks in fourth quarter Matthew Vella The Campaign for a Decent Mini- mum Wage has said Malta's mini- mum wage remains inconsistent the island's economic performance and growth "There are countries which are experiencing slower economic growth or whose cost of living is at par with the cost of living in Malta, but which have a higher minimum wage. We reiterate our call to government to increase the minimum wage by 11% - spread over three years, through a 3.5% increase per year – to partly address this anomaly," Michael Grech said. Newly released Eurostat data on national minimum wages in the EU have shown that while the minimum wage in Malta is roughly midway between the highest and lowest, the change registered between 2014 and 2017 is one of the lowest in Europe, despite the country's strong economic performance. In ten countries, out of the 22 that have a national minimum wage, the amount amounted to less than €500 a month, while in 7 EU states, workers on the minimum take home more than €1,000 a month. Five states, of which Malta is one, have a minimum wage that lies in between €500 and €1000. Malta's minimum wage stands at €736 a month, with Luxembourg having the highest wage at €1999 and Bulgaria having the lowest at €236. Furthermore, Malta is one of the seven countries registering a minimum wage that is less than 50% of the country's median income. Several organisations and individuals are involved in the Campaign for a Decent Minimum Wage. The organisations participating in the Campaign are: Aditus Foundation, Alleanza Kontra l-Faqar, Caritas, Forum Bormliż, Integra Foundation, Koperattiva Kummerċ Ġust, Malta Humanist Association, Malta Microfinance, Mid-Dlam għad-Dawl, Millennium Chapel, Moviment Graffitti, Paulo Freire Institute, Peace Lab, The Critical Institute, Third World Group and Żminijietna - Voice of the Left. Activists are calling on government to increase the minimum wage by 11% The Greek economy unexpect- edly shrank in the three months to December, latest figures show. Output fell by 0.4% in the final quarter of the year, compared with growth of 0.9% in the third quarter. Analysts had been expecting the growth to continue. The country is in the throes of difficult bailout talks with international creditors. Overall, eurozone growth was revised down to 0.4% for the fourth quarter. An initial estimate had put the growth rate at 0.5%, but the estimate was reduced partly as a result of slower than expected growth in Germany. However, Germany's 0.4% growth rate in the final quarter of 2016 was still better than the 0.1% rate recorded in the previous three months. A separate report from the German economy ministry said that rising orders in manufacturing and construction pointed to "solid" growth in the first three months of 2017. "Economic indicators are pointing to a solid start for the year 2017," it said. "However, uncertainties remain especially in the trade environment. The outlook for the global economy remains subdued." The disappointing Greek figures come as fears grow that the debt crisis could resurface. The country is under pressure to step up economic reforms, including pension cuts and tax rises. The left-wing government led by Alexis Tsipras bitterly refuses more reforms, and the premier on Saturday warned creditors to "stop playing with fire" over his country's debt problems. An IMF report obtained by AFP last week said Greece's debt "is highly unsustainable" and "will become explosive in the long run." In its latest assessment on the Greek economy, the International Monetary Fund argued that "Greece should deepen and accelerate reforms, which, together with further debt relief, are needed to allow the economy to return to a sustainable growth path". But the call for more leeway for the country to pay its debts, prompted opposition from the eurozone, which has already given the country significant debt relief and is reluctant to go much further. The issue will be discussed at a eurozone finance ministers meeting on 20 February. A Greek government spokesman said he was hopeful of agreement.Talks in Brussels between Greece and its creditors on Friday ended with no breakthrough, although Eurogroup chief Jeroen Dijsselbloem said some progress had been made. The next meeting of eurozone ministers, on February 20, is seen as an unofficial deadline to end the stalemate ahead of important elections in Europe. Greek central bank chief Yannis Stournaras has warned that a quick resolution is crucial in order to avoid a replay of the chaos in 2015 when Greece defaulted and just barely survived in the eurozone. "Any later, the conditions will be much worse and it will be too late," Stournaras told lawmakers on Monday.