Most probably the derogatory comments about Malta are done by people who never went abroad.

vonmieses was referring to the roaring 90s under the PN, not now.

Devaluation would have been certain.

And when the Spanish government issued 5-year debt this morning, the cover ratio was almost double that in the previous auction. Your guest contributor seems to conveniently forget that cover ratios say absolutely nothing about the soundness of government finances.

He also seems remarkably self-assured about the Maltese economy, perhaps by more than is warranted by the current uncertainty around making gross generalisations about countries being in “good shape”. In a speech just six months ago, Greek PM Papandreou also thought Greece was in good shape: “…salaried workers will not pay for this situation: we will not proceed with wage freezes or cuts. We did not come to power to tear down the social state” (Dec 11, 2009). We know how that one turned out.

Your ‘guest contributor’ can cherish Malta’s change in direction in 1987 all he wants. My grandparents cherish the end of the Second World War. But they stopped comparing 2010 with the forties a long time ago.

You really have no idea how bad the financial situation is in the PIGS states. Malta’s budget deficit at 3.8% of GDP and total debt at 67% of GDP are only marginally higher than the Maastricht allowed thresholds of 3% and 60% respectively. Greece’s total debt will exceed 150% of GDP within 3 years.

Even the UK had a budget deficit of 11% last year, and its total debt will soon creep up to 70% – notwithstanding all its North Sea revenues in the past.

Malta is nowhere near the mess the PIGS countries are in.

There is the Public Accounts Committee chaired by a Labour MP and if it is not doing its duty then it’s his fault. So if you have a corruption complaint go before it and present your case.

Pre 1987, there was nothing one could do but stomach the corruption which was in itself an institution.

Corruption was everywhere. If today I smell corruption like Labour does, it goes before the police, the PAC, the Ombudsman, the Auditor General, as well as the Commission against Corruption. That puts an end to your allegations. Allegations are worldwide, not only in Malta.

Such a well-written and thought-out article. Can guess who wrote it, Daphne.

[Daphne – I don’t think you know him, Harry.]

David,we are borrowing to lend to Greece. That leaves me neutral. With our structural deficit we are in no position to lend money.