News | Sunday, 25 April 2010

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Economist Intelligence – ‘Delimara threatens government’s stability’

James Debono
While forecasting that the PN will remain in office in the next two years, the Economist Intelligence Unit’s latest report is warning that the stability of the Maltese government is potentially threatened by controversy surrounding the extension of the Delimara power station.
The EIU report was published amid the growing anticipation on the contents of the report finalised last Monday by the Auditor General on the tender awarded to Danish firm BWSC, following hotly contested changes in Malta’s emissions laws.
The report forecasts testing times for the party in government due to “weak economic activity, a deteriorating fiscal position and rising internal dissent.”
According to the report, Prime Minister Lawrence Gonzi will struggle to push through structural reforms in healthcare and pensions because of discord on the government’s backbench.
This warning comes after Nationalist backbencher Dr Jean Pierre Farrugia threatened not to vote for the proposed reform of primary health care.
The government will also face a difficult task to strike a balance between the considerable demands on the public finances and strong pressure from the European Commission to return the deteriorating fiscal position to a sustainable position.
The report notes that parliament was suspended for a three-week period to allow time for the appointment of a new MP to replace new EU commissioner John Dalli.
The report also referred to rising instability when backbench PN MP Franco Debono abstained from voting in parliament, thus requiring the casting vote of the speaker to support the government’s wafer-thin majority.

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