Euro Area Finance Ministers recognised that Malta has taken additional measures within its own budgetary process to address the risk of non-compliance with the rules of the Stability and Growth Pact.

The positive assessment was delivered during a meeting of the Eurogroup held in Brussels yesterday to assess Euro Area member states’ draft budget plans. International financial markets have termed this first meeting of Euro Area Finance Ministers to undertake such a coordination exercise ‘a historic occasion’.

During the meeting, Finance Minister Edward Scicluna informed his counterparts of the measures undertaken during the budgetary process and in particular the 2014 Budget to consolidate Malta’s fiscal situation.

While admitting that Malta’s deficit forecast was at odds with the Commission’s 2013 autumn deficit forecast, in particular as regards indirect tax revenue for 2013, Prof. Scicluna noted that the discrepancies outlined mainly originate from elasticity estimates in the Commission projections, as compared to the ministry’s own fiscal performance reports. He augured that the year-end final results would resolve these differences.

The minister expressed satisfaction at the outcome of the meeting and the approved Eurogroup statement. He said: “the measures which have been undertaken in the 2014 Budget, combined with the acknowledgement expressed today by the Commission, confirm that Malta is heading in the right direction.”