LOCAL NEWS
Update by Ministry of Health
Three new cases were registered in the past 24 hours, identified from 970 swab tests. With seven persons recovering, the number of new cases has gone down again, to 33. According to the Health Ministry, from a total of 625 infected persons, 583 persons have now recovered.
Increase in unemployment inevitable even in best of circumstances – CBM on Covid-19 impact
The Central Bank of Malta expects economic growth to be severely affected by the outbreak of COVID-19 and the containment measures imposed by governments worldwide to stem the spread of the virus.
In its outlook for the next three years (2020-2022), the Bank argues that if containment measures are at least partially successful, GDP is projected to contract by 4.8% in 2020, and grow by around 5.8% and 4.2% in the following two years. Despite the projected recovery, the level of economic activity is expected to be around 6% lower than that expected prior to the outbreak of COVID-19.
This decline, as expected, will reflect mostly a drop in exports and travel-related disruptions. However, domestic demand is also expected to contribute negatively, as the shut-down of various activities and elevated uncertainty is expected to adversely impact private consumption and investment. Conversely, given the fluctuating international situation, domestic demand is expected to be the main driver of the projected recovery in 2021 and 2022.
This will lead to an inevitable drop in employment and a rise in those seeking a job. Government’s fiscal measures are however expected to be supportive of the labour market, and hence, the expected losses in headcount employment are rather mild when compared with the foreseen decline in GDP. The labour market is then expected to rebound in the following years, due to the projected improvement in economic activity levels.
MEA Budget Proposals
The Malta Employers Association is recommending a temporary reduction of company tax from 35% to 30% as well as a general reduction in VAT, to 15%, and even lower, at 5% for the hospitality sector. In recommendations forwarded to Government before Monday’s mini-budget, the employers group is also pushing forward a reduction in utility bills and an extension of the wage supplement till September.
In a statement, the MEA said that expectations in a number of economic sectors are that recovery will be slow and may take between 2-3 years to reach pre-COVID levels of activity. It said that on average there are approximately 75,000 fewer persons – thereby consumers living in Malta (including tourists and third country nationals) than there were in June 2019. As trends over the past five years pointed towards an expansion in total population, businesses catering for the domestic market, such as catering, retailing, rentals and so forth, increased their capacity accordingly.
The MEA said that although the budget is addressing what is essentially a force majeure situation, it should also act as a catalyst for discussion and planning to shape the economy to move towards higher value added activities which place quality over quantity. The crisis has also had some positive side effects, especially with respect to the environment.
“We should be proactive and start thinking now about how to address air and noise pollution, which have been reduced during the past three months, to improve people’s quality of life. Other environmental matters, such as food security and the transition to green technology should also move up in the hierarchical ladder of national priorities. It would be a lost opportunity if these issues are not addressed.”
The MEA has also requested an extension of the Teleworking Scheme indefinitely to encourage a better take-up and implementation of remote working systems. It has also appealed for cearer guidelines for returning to work and insisted that child Care and summer schools were to accommodate all students as this was having an impact on the turnout of parents at work.
It also called for re-training schemes and employment support programmes for persons who lost their job as well as the reduction of bureaucracy for the extension of work permits for third-country nationals who are still in employment as there is still a demand for foreign labour in certain sectors.
#MALTA-24: LOCAL NEWS
Timesofmalta.com
Clash over mini-budget procedure in parliament
Announced on Sunday by Prime Minister Robert Abela as part of the roadmap to the ‘new normal’, this exercise is unprecedented in recent parliamentary history.
A government spokesman said it would not be a full-blown budget where each ministry is treated separately. He said the details of this “business stimulus package” were still being ironed out and consultations were taking place with the opposition.
One of the stumbling blocks is the running order of the parliamentary session. In normal circumstances, the finance minister, the opposition leader and the prime minister would address the House in this order in separate sittings, but the government is proposing to hold all of the speeches on Monday.
Contacted by Times of Malta, Opposition Whip Robert Cutajar said the matter should be decided in the House Business Committee. For some reason, the government was ignoring the opposition’s calls to summon it, he said.
Instead, the government notified the opposition that Monday’s sitting would start at 6pm rather than at 4pm, with Finance Minister Edward Scicluna delivering the mini- budget speech, followed by opposition leader Adrian Delia’s reply. Prime Minister Robert Abela would wind down the debate.
Independent
Decision to reopen airport welcomed by travel agents, but concerns raised over tourism corridors
“We welcome this measure and we are pleased that the authorities feel comfortable with the decision to relax the restrictions. However, we do need to understand in more detail the reciprocal restrictions in place for the 19 destinations that will share flights with Malta,” Tonna said.
Maltatoday
Shopping picks up as COVID-19 measures relaxed but lack of tourists remains problem
Shoppers are showing increased confidence, according to Valletta retailers but the lack of tourists continues to be an issue as Malta lifts COVID-19 restrictions. Retailers were cautiously optimistic about their prospects in conversations they had with Chamber of Commerce president David Xuereb during a brisk walkabout this morning in the capital.
Xuereb was visiting retail outlets in Republic Street, the first day when all shops were allowed to reopen, and clothes stores can let customers use changing rooms to try on outfits. Almost all COVID-19 restrictions have been lifted as of today, including bars, gyms and entertainment outlets, as long as they observe safety conditions.
“Things are going well, to be honest. We’ve opened changing rooms today and our staff are disinfecting them after each use,” one clothes shop manager told Xuereb. When the restrictions on clothes shops were initially lifted, the use of changing rooms was barred. This has now changed.
Printed
The Times carries an interview with PL Deputy Leader Chris Cardona who denied any part in the assassination of Daphne Caruana Galizia, as state witness Melvin Theuma said in court. He also expressed scepticism about involvement by former chief of staff Keith Schembri.
The Independent speaks to the president of the travel agents’ association Iain Tonna who said the industry welcomes the reopening of the airport in July. Travel agents, however, raised concerns over the countries Malta will initially share flights with.
L-Orizzont speaks to psychologist Michael Galea who said that the return to a normal routine after the coronavirus means that people will have to adjust to a new kind of stress and warned some will find it harder than others.
In-Nazzjon says that gyms cannot open yet despite the lifting of restrictions because they have not received the required safety protocols. They are now hoping to be able to return to business from the coming week.
The Independent quotes Transport Minister Ian Borg who announced that four international consortia have submitted offers for the construction of the Gozo-Malta tunnel by the end of the pre-qualification questionnaire.
L-Orizzont says that security analysts in Malta and Europe are concerned over the rising possibilities of bioterrorism. The paper speaks to security officials who said that the Covid-19 pandemic has raised the alarm about such threats.
The Times speaks to teenage goalkeeper Rashed Al-Tumi who said that racial abuse is commonplace at football grounds in Malta. The promising talent was himself recently the target of abuse by a nursery official who has since been sacked.
In-Nazzjon says that the Union Ħaddiema Magħqudin and the Union of Teachers have instructed vulnerable members to work from home following a notice by the head of civil service informing departments that workers are expected to report to work from today.
L-Orizzont quotes Ben Lesser, a holocaust survivor, who said that humans must find ways to live together. He hopes that people learn to accept the differences of others, not hate them.
Editorials
The Times of Malta‘s Editorial argues that while government has declared victory in the war against coronavirus, it may only have been a battle. It is not at all sure what will happen in a few weeks’ time or with the onset of autumn. Second waves are consigned to the sea at our own risk. Neither do we know when a viable, safe vaccine might become available. The Editor insists that while enjoying well-deserved freedom from the constraints endured over the last few months, the public should continue to act prudently, keep well in mind those considered vulnerable and pay close heed to the guidelines that may be issued by the experts from time to time.
The Independent dedicates its Editorial to the disease of racism which continues to plague modern society. It refers to the death of George Floyd, an African-American who died in the hands of the police in the US last week as just another episode of this issue, and expressing the belief that unfortunately it wont be the last. Floyd is destined to become a symbol of the movement in favour of civil justice, as the Editor notes that while similar protests have taken in the past after such events in the US, it is a rare occasion that they have spilled over in other countries too.
In-Nazzjon rails against the divisiveness of the political comments made in public recently by Mario Philip Azzopardi, Tony Zarb and Reno Calleja. While Calleja was criticised for mocking the Opposition, statements by Azzopardi and Zarb were harsher in that they appeared to instigate hate against Nationalist MEPs. The Editor describes such statements as hate speech and wonders what action has been taken against them.
L-Orizzont takes cue from an encouraging assessment carried out on the Maltese economy by international credit rating agency Credit Reform. While acknowledging the risks from abroad to which the Maltese economy is abroad, the Editor notes how the agency highlighted the support package established by Government and the strength of Malta’s financial position which will allow the economy to recover.
INTERNATIONAL NEWS
Italy issues guidelines to avoid crowded summer spots
talian authorities unveiled new guidelines to avoid that crowded summer spots — like beach resorts — become new virus clusters.
The slowing trend in the number of deaths registered in May continued in early June, confirming that the peak of the crisis has been left behind.
The tally of active infections fell again on Thursday, by 868, placing the total at 38,429. Meanwhile, recoveries continued to climb, surging to 161,895, as more patients left
intensive care, lifting pressure on Italy’s strained health care system.
The northern Lombardy region remains the epicentre of the pandemic, with victims edging up to 16,201, almost half of the total.
Italians on Wednesday were finally able to take trains or ferries to reunite with their relatives, as they were allowed to travel between regions for the first time after three months of lockdown.
Italy was also one of the first countries in Europe to reopen its borders to international tourism — hoping to relaunch its key touristic industry hit hard by the pandemic. Visitors coming from the EU and Schengen countries will not have to undergo a two-week quarantine as they enter the country.
EU Corner – by Comuniq.EU
Swift return to functional Schengen area key to EU’s economic recovery – MEPs
Civil Liberties Committee MEPs express their concern about the current situation of internal border controls in the Schengen area and their impact on people and businesses, in a resolution adopted on Thursday by 53 votes in favour, 6 against and 6 abstentions.
They stress that a swift and coordinated return to a fully functional Schengen area is of utmost importance to safeguard freedom of movement, one of the main achievements of European integration, and to ensure the EU’s economic recovery after the pandemic.
While demanding that member states reduce restrictions on the freedom of movement to the same extent that COVID-19 containment measures are being relaxed, MEPs suggest that a regional approach may be more proportionate than national border controls. Restrictions on freedom of movement could be lifted where the public health situation in neighbouring regions has comparably improved.
MEPs also urgently call for a debate on setting up a Recovery Plan for Schengen and the ways and means to return to a fully functioning Schengen area as quickly as possible, to prevent temporary internal border controls from becoming semi-permanent. The plan should also include contingency plans in case of a potential second wave.
This daily update bulletin is being compiled for the Chamber of Advocates by CI Consulta from Corporate ID Group. CI Consulta delivers policy research and analysis, evaluations and impact assessments up to policy implementation and integration.
