Malta Exits EU Deficit Procedure After Beating Fiscal Targets Ahead of Schedule

Malta has achieved its fiscal targets well ahead of schedule after reducing its deficit-to-GDP ratio below the European Union’s 3% threshold, Prime Minister Robert Abela announced during a press conference at Castille.

The European Commission confirmed that Malta’s deficit fell to 2.2%, significantly below the EU average of 3.1%, and has formally recommended that the country be removed from the Excessive Deficit Procedure.

Malta is currently the only EU member state to be removed from the procedure and is forecast by the Commission to record the strongest economic growth in Europe this year and next.

Addressing the conference alongside Finance Minister Clyde Caruana, Dr Abela said the Government’s decision to invest in people rather than pursue austerity during the pandemic had delivered stability and economic resilience.

He added that national debt as a proportion of GDP is declining, with a target of reaching 40% during the current legislature.

Minister Caruana noted that Malta achieved the fiscal milestone in just two years, despite being granted four years by the European Commission to meet the target.

#MaltaDaily