PM Muscat: EC is confident in the new Govt’s plan

Wednesday, 29 May 2013, 16:06

 

The European Commission today called for reforms in pensions and healthcare and sustainable public finances and recommended that Malta be placed under an Excessive Deficit Procedure.

The Maltese government has noted the Commission’s recommendation.

The Prime Minister said that this shows that the European Commission is confident in the new Government’s plan, which is a positive sign for the future of the Maltese economy. The Government said that it is committed to ending 2013 with a deficit below the threshold of 3% despite the Commission’s decision to allow Malta the freedom to do so by the end of 2014.

The Commission advised the European Council that Malta should address this situation by 2014.

They stated that specifically, Malta should reach a headline deficit target of 3.4% of GDP for 2013 and 2.7% of GDP in 2014, which is consistent with an annual improvement of the structural balance of 0.7% of GDP in 2013, and 0.7% of GDP in 2014.

This adjustment path would allow bringing the deficit below the 3% of GDP reference value by 2014 while at the same time ensuring that the debt ratio will approach the 60%-of-GDP reference value at a satisfactory pace.
The Commission also highlighted the need for reforms with regards to healthcare, pensions and sustainable public finances.

The Commission recommended that Malta should address its excessive deficit situation by 2014. It said that Malta should reach a deficit target of 3.4% of GDP for 2013 and 2.7% of GDP in 2014, which is consistent with an annual improvement of the structural balance of 0.7% of GDP in 2013, and 0.7% of GDP in 2014.

This adjustment path would bring the deficit below the 3% of GDP reference value by 2014 while at the same time ensuring that the debt ratio will approach the 60%-of-GDP reference value at a satisfactory pace.

In a statement issued in Brussels, the Commission said that “…Malta faces important entrenched challenges that affect the sustainability of its public finances and its potential growth…Malta made limited progress in implementing the 2012 country-specific recommendations. On the positive side, in the area of public finances, adequate action has been taken towards strengthening tax compliance and fighting tax evasion, but concrete results are yet to materialise…Finally, measures taken in energy, climate and transport are far from sufficient in view of the scale of the challenges in these areas”.

The Commission issued country specific recommendations (CSRs) to Malta to help it improve its economic performance in the following areas:

  • Sustainable public finances and tax compliance
  • Sustainable pension and healthcare systems
  • Education, skills and family-friendly measures
  • Energy supply, efficiency and renewables

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Comments (1)

Carmel Cilia

- Thu 30-May-2013, 08:35

Issa il kummissjoni ewropea jidher li iccaqqalqet ghax hemm gvern laburista. ara lin- Nazzjonalista halliethom jaghmlu li jridu- Dejn bl-addocc u deficits mhux milhuqa sena wara sena.
Din is-soltu storja ta l-ewropa ta Cain li tattakka lil labour biex tirrestringieh milli jaghmel mizuri tajba.
Nispera li Dr. Muscat ma jaqaghax ghal l-iska u jnaqqas il penzjonijiet.
Nispera li in Nazzjonalist mhux se jsibu lil Ewropa tiggieled ghalihom biex tpoggihom lura fil poter malajr kemm jista jkun.
Tinsewx li Manwel Barroso kien bicca wahda ma Gonzi fil kas ta John Dalli.
Nistennew u nittamaw li l-affarijiet mhux hekk.

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