Finance Minister Clyde Caruana has built a reputation for fiscal prudence and has so far been seen as a voice of reason in a cabinet of ministers riddled with corruption, crime, cover-ups and conspiracies. He seems to have lost his conservative composure during this general election campaign as he rolled out his new expansive fiscal policy focused on widening subsidies and recurrent expenditure. From fiscal prudence, the Minister seemed to jump straight into Peronism.
Yesterday, the Minister fought back and asserted his policies and vision with an ideological discourse that emphasised socialist principles. His impassioned speech was, so far, his strongest defence of his policies and, for a socialist who prioritises the welfare state, Minister Clyde Caruana is actually in the right place doing the right thing.
The problem is that the Minister’s brand of socialism is being improvised out of electoral convenience within a system of state patronage. Ideology can justify anything and can also create obfuscation. Ultimately, if the Minister wants to defend the weak and the poor, he has to equip the country with the necessary capital projects that will help sustain the country in a volatile international environment – he’s not doing this at all.
Clyde Caruana is not stupid and he knows about the risks he is taking. He’s also a competent socialist, and he knows that a policy of indefinite subsidies is not sustainable: he himself has spoken against it multiple times. So what changed?
The Minister of Finance has two sides to his personality: his partisan side and his technocratic side. He is currently fully engaged with his partisan character for the exigencies of the general election. The day after will be bitter. His next budget may withstand his estimated expenditure under current conditions, but things are changing. Clyde Caruana has placed all his bets on consistent and expansive economic growth: any blip or external factor that interferes with his estimates will destroy his career, and he will come out looking like the biggest fool in Maltese politics.
Clyde Caruana is taking a very big risk, but he has few options at his disposal if he intends to climb the political ladder — and climb it he did.
With yesterday’s speech, Clyde Caruana has secured his future as Deputy Leader of the Labour Party and Deputy Prime Minister. He is probably at the height of his career. At this stage, Clyde Caruana’s influence and reach within the party, in an open leadership contest, can only be contested directly by Joseph Muscat’s faction.
Clyde Caruana deserves a lot of credit for emerging from the shadows and achieving this dominant status within a political party that remains heavily bound by the loyalties and associates of Joseph Muscat. This is why Ian Borg remains very important for Joseph Muscat if he intends to retain his influence within the party. Ian Borg is tied to Joseph Muscat through old loyalties and friendship, having served as a minister in his cabinet. Clyde Caruana has no association with Joseph Muscat.
Even if Clyde Caruana does not become Party Leader, he may very well have the opportunity to become the most influential Deputy Leader the Labour Party has ever had. All eyes will now be on him as he navigates his new political heights. He will eventually show how he intends to use his newfound influence and power, or whether he will falter under his own promises and fiscal bravado.
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