NEWS | Wednesday, 28 May 2008

IMF delegation visits Malta

Meets Charles Mangion, UHM

Charlot Zahra

A delegation from the International Monetary Fund (IMF) was in Malta for its annual consultation with the Maltese authorities in preparation for its annual report on the country’s economic situation, Business Today can confirm.
The IMF delegation was composed of Julio Escolano, Deputy Division Chief, Bogdan Lissovolik, Senior Economist, at the IMF’s Southern 1 European Department, and Christian Henn.
The delegation met with senior Government and Central Bank officials, Trade Unions, employers’ organisations and other social partners, political parties, as well as economists.
This visit to Malta had added significance this year, in view of the worsening international economic situation and the rise in the country’s inflation rate, partially resulting from the spike in the international prices of fuels and wheat.
Any such visits from IMF delegations are usually kept away from the public eye. The IMF seems to prefer to conduct its meetings in confidence.
During the meeting with Labour acting leader Charles Mangion, the discussion focused about the sustainability of public finances, the fuel surcharge and its socio-economic impact, as well as inflation and competitiveness.
There was agreement that Malta’s unit labour cost per hour is competitive, however in spite of this, the country’s GDP per capita did not increase during the past few years.
During the meeting, reference was made to the fact that despite the fact that the Government also privatised a lot of its entities, the size of the public sector was still substantial and therefore the principles of accountability, diligence and value for money are applied.
The two sides also discussed Malta’s results in the educational sector, in view of the need of development in the country’s human capital, the competence of workers, as well as the positive impact on the country’s economic development, leading to an increase in salaries.
Another meeting was held with a Union Haddiema Maghqudin (UHM) delegation led by Union secretary-general Gejtu Vella, during which the two sides had a wide-ranging discussion on various matters, all related to Maltese and global economy.
One of the themes discussed during the meeting was the importance of workers’ devolvement through continuous training and how this can contribute for the attraction of more value-added investment to Malta.
The meeting also addressed the importance of flexibility and the role of the Malta Council for Arts, Science and Technology (MCAST) and the Employment and Training Corporation (ETC) so that Maltese workers can respond for the Maltese economy’s needs.
Other themes discussed with the UHM delegation were irregular migration, inflation and the Cost of Living Adjustment (COLA), as well as research and innovation.

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