Fabian Demicoli

Council closes excessive deficit procedure for Malta


The Council has adopted a decision
closing the excessive deficit procedures for Malta, confirming that it has
reduced its deficit below 3% of GDP, the EU's reference value for government
deficits. The decision abrogates the decision that
the Council took in July 2009 on the existence of an excessive deficit in Malta
after its general government deficit reached 4.7% of GDP in 2008.

The Council
had initially called for the deficit to be corrected in 2010. However, in
February 2010, it extended the deadline for correction by one year in the light
of a sharperthan-expected deterioration in Malta's economy. Setting 2011 as the
new target year for correcting the deficit, the Council called on Malta to achieve
a 3.9% deficit in 2010 and to ensure a ¾ % of GDP fiscal effort in 2011. Malta
reduced its general government deficit to 3.6% of GDP in 2010 and to 2.7% in
2011.

The Commission projects the deficit to
fall further to 2.6% of GDP in 2012, mainly thanks to revenue-increasing
measures that are mostly of a one-off nature. Under a no-policychange scenario,
the general government deficit would widen to 2.9% of GDP in 2013 before
narrowing again, to 2.6% of GDP, in 2014, thus remaining below the 3% of GDP reference
value over the forecast horizon. Budget consolidation measures are however
contained in Malta's 2013 budget, which was adopted after the cut-off date for
the Commission's autumn economic forecast. The Council concluded that Malta's
excessive deficit has been corrected.

What we can do for you

INFORMATION POINT

BUSINESS SERVICES

MEMBERSHIP BENEFITS

LOCAL ISSUES & LEGISLATION

B2B NETWORKING EVENTS

LEGAL ADVICE

FUNDING ASSISTANCE

COURSES

BECOME A MEMBER

The Malta Chamber of SMEs represents over 7,000 members from over 90 different sectors which in their majority are either small or medium sized companies, and such issues like the one we're experiencing right now, it's important to be united. Malta Chamber of SMEs offers a number of different services tailored to its members' individual requirements' and necessities. These range from general services offered to all members to more individual & bespoke services catered for specific requirements.

A membership with Malta Chamber of SMEs will guarantee that you are constantly updated and informed with different opportunities which will directly benefit your business and help you grow. It also entails you to a number of services which in their majority are free of charge and offered exclusively to its members (in their majority all free of charge).