IN an interview with the Gibraltar Broadcasting Corporation last night (January 14) former Chief Minister and recently appointed Minister with responsibility for Financial Stability Sir Joe Bossano made a shocking statement.
He basically said that due to disruption caused by both Brexit and the Covid-19 pandemic that the Rock was no longer financially stable and that the situation is “extremely serious” with hard decisions having to be made with regards to public spending.
This was after an emergency cabinet meeting held to discuss the forthcoming budget and he further indicated his belief that things won’t return to the buoyant times of 2018/2019 until after the next General Election due in 2023.
Roy Clinton the opposition Shadow Minster for Public Finance remarked upon hearing this news;
“We have for the last eight years been warning the Government that it’s level of spending and borrowing were out of control. Whereas no-one could have foreseen the combined economic effects of Covid-19 and Brexit, it is evident that Gibraltar needed a bigger financial cushion than it currently has and its rainy-day funds are insufficient.
“The £500 million loan facility guaranteed by the UK is only for three years and thus does not give us much room for error if we are to meet our obligations as a community. Spending needs to be prioritised and targeted. “
Thank you for taking the time to read this news article “Gibraltar no longer financially stable warns former Chief Minister”.