The government argued that the momentum the Maltese economy had built should be maintained as it sought to persuade the European Commission not to impose any specific cuts to the budget, Finance Minister Edward Scicluna said today.

Prof. Scicluna was speaking at a joint press conference with the Governor of the Council of Europe Development Bank, but he ended up answering a number of questions on the Commission’s decision to recommend that Malta should be placed under Excessive Deficit Procedure, just six months after the procedure was withdrawn.

The minister stressed that European Commission could have identified a package of cuts which Malta would be asked to implement, and said that while the government was obviously not pleased that Malta was under the EDP, he was satisfied to note that the Commission did not order any specific cuts after the matter was discussed.

He said that he discussed the issue with Economic and Monetary Affairs Commissioner Olli Rehn on two occasions, once in a meeting in Brussels – in which Prime Minister Joseph Muscat also participated – and over a long telephone conversation.

Prof. Scicluna noted that Malta’s economy was currently performing well, with indications of increasing consumption spurring increased economic activity.

He noted that in the arguments presented to the Commission, the government noted that the economic momentum which had been built should be maintained, since economic growth would increase the government’s revenue. Any austerity measures resulting from spending cuts could then be detrimental, according to the government.

“Keep us moving and we will deliver,” he said.”

The minister emphasised that while the Commission ordered no cuts, this did not mean that the government would engage in a “free-for-all.” He pointed out that the Finance Ministry is reviewing government expenditure month after month, ready to act if projections are missed.