The cockiness of Minister of Finances, Clyde Caruana seems to be waning off as finally, the reality of life hits him hard and he realises that being Minister of Finances does not necessarily mean it’s enough to serve as a village bureaucrat handing out €100 cheques to your constituents.
In a discussion organised by the Chamber of Commerce, Clyde Caruana said that the Russian war on Ukraine has cost the Maltese government €200 million in one week and said he would need another €200 million. He didn’t mention how and why the government is spending so much money. Clyde Caruana also guaranteed that the government will continue issuing subsidies to cover current price increases and shortages. He gave no details whatsoever.
We also have so far no details on Malta’s energy plans. The Labour Party is campaigning for election and doesn’t have a manifesto public yet.
It all seems normal and fine in the rent-seeking paradise to be totally unprepared and oblivious of what to do in such a crisis. Clyde is betting that economic growth will eventually pay off for the current government expenditure and there are many problems with his idea, namely that we haven’t created new economic sectors in our economy and Clyde is betting that future economic growth will be mostly dependent on tourism and the construction industry.
Labour literally plans to pay its way in government with public subsidies until it is defeated in the polls to leave office with no care of what will happen to the future of our country if we wreck our public finances today. Maybe Clyde Caruana could help us out with more details about his plans.