The Council of the European Union on Tuesday endorsed the national medium-term fiscal-structural plan of Malta and several other member states.

In its remarks about Malta, the council said that if the net expenditure path committed to in the plan and the underlying assumptions materialise, general government debt would slightly decrease from 49.2% in 2024 to 48.8% of GDP at the end of the adjustment period (2028). Over the medium term (i.e. until 2038), the debt ratio is set to decrease further, reaching 42.3% of GDP in 2038. Thus, according to the plan, general government debt would remain below the Treaty reference value of 60% of GDP over the medium term.

"This is plausible based on the plan's assumptions, as debt would be projected to stand below 60% of GDP by 2038 under all deterministic stress tests of the Commission's Debt Sustainability Analysis," the council said. 

The government in a statement welcomed the council's assessment, viewing it as a vote of confidence in Malta's fiscal administration. 

"The government remains committed to wise fiscal administration with a view to further strengthening the economy and public finances, improving the quality of life of the people of Malta and Gozo," the government said.