Clyde Caruana tight-lipped on overall cost of Labour manifesto pledges
Malta to emerge from EU's excessive deficit procedure, finance minister says
Finance Minister Clyde Caruana on Thursday dodged a question about the overall cost of Labour’s manifesto pledges but assured that Malta’s deficit and debt will continue on a downward trajectory until 2030.
Replying to questions during a Labour press conference, Caruana said the manifesto costings have already been factored into recent deficit and debt projections.
Caruana said Malta is projected to eliminate its budget deficit by 2029, and debt levels are projected to fall to under 40% of GDP by 2030.
These debt levels will be the lowest Malta has seen since the mid-1990s, Caruana added.
Running to 263 pages in length and featuring more than 1,000 points, Labour’s manifesto features tax breaks, a €1,000 “super bonus” for workers and continued energy subsidies.
Caruana said the European Commission’s spring forecast shows that Malta will be emerging from the EU’s excessive deficit procedure, with the deficit projected to remain below the 3% threshold this year and next.
Minister downplays risks of tax law
The finance minister downplayed a suggestion that the government's controversial tax settlement law could see Malta land back on the FATF’s grey list.
Malta was grey-listed by the global financial crime body over its failure to prevent and prosecute money-laundering.
Last year, the government passed a law allowing people charged with money-laundering linked to tax crimes the possibility to settle their tax dues with the authorities.
The law has seen several high-profile money-laundering cases collapse as a result of the settlements
Car dealer Christian Borg, who was involved in a property deal with prime minister Robert Abela, is among those who has walked away from multi-million-euro tax evasion and money laundering charges thanks to the law.