It was indeed positive news to hear that the EU Council has stopped excessive deficit procedures against Malta. It might sound like a run of the mill return to regulatory framework, but it is not.

The result is more of an achievement than that. The whole of the EU, apart from Estonia, Luxembourg and Sweden, was facing excessive deficit procedures and Malta was the only country which saw them being halted.

The EU’s assessment of Malta’s finances was that we are on track to sustainable growth, but more needs to be done in terms of implementing budgetary measures to ensure good fiscal governance.

In other words, we are doing well, but we need to do more to ensure long-term sustainability. Of course this needs to be taken into context of the altered parameters of the EU’s fiscal regulations. While we may still have a deficit which is higher than 3% of GDP and a public debt which is also higher than the 60% of GDP benchmark, a country now needs to show that its budgetary initiatives correspond with projections in order for the procedures to be lifted. Put simply, if one shows that one is well on the right track to stability, then that is good enough.

When one talks in diplomatic circles, one begins to feel that a few hairs are standing on end at Malta’s firm pledge to join the hardliners on the euro debate – put simply, we are backing the German corner.

There seems to be a general feeling that Malta is being a bit presumptuous in announcing its achievements and in falling into line with Germany.

We do not agree with this sentiment in the slightest. Malta is one of a few nations in Europe that has not drawn out its own self destructive path to economic meltdown. We were prudent, we looked ahead and we never bit off more than we could chew. The reason why Malta is in this ‘good’ position when compared to the rest of Europe is the sacrifices that ordinary people have made to keep the economy afloat. That goes from day to day business to subsidising a hugely inefficient Enemalta. We even managed to keep the dockyard afloat for a good number of years.

Air Malta is the next tough cookie. Changes will have to be made, but we are sure that with the right guidance and a common-sense and business approach, it will continue to succeed.