Finance Minister Edward Scicluna said this morning that he was confident that the European Commission would drop the excessive deficit procedure for Malta early next year, once government finance figures for 2014 are out.

Speaking during a public consultation meeting in Valletta, Prof. Scicluna argued that the Commission was still wary of Malta's financial plans since the country's financial estimates for 2012 had been off target, leading it to be placed under an excessive deficit procedure a few months after this had been lifted in November 2012.

But he said that in 2013 and this year, the deficit has been reduced below the European Commission's own forecasts. He noted that last year, the government deficit amounted to 2.7% of the GDP, even though the Commission had projected a 3.7% deficit. This year, the Commission estimates a deficit of 2.5%, but the minister assured that the government's 2.1% target would be met.

The government's deficit target for 2015 is also lower than the Commission's estimate of 2.6%, at 1.6% of the GDP.

Prof. Scicluna also discussed the Commission's opinion on Malta's draft budget, in which it warned that the country's budgetary plans were at risk of non-compliance.

He reiterated that the lack of detail on new or revised indirect taxes include in the 2015 Budget - stemming from Maltese custom not to announce such measures before Budget Day - accounted for this, as €28 million in projected revenue was consequently not factored in the Commission's evaluation.

The minister argued that the government should not prepare for tax increases on the eve of a budget but well in advance, with studies looking into the economic impact of new taxes.

Prof. Scicluna noted that when the present government came into power, Malta was not only placed under excessive deficit procedure but also under the macroeconomic imbalance procedure. He pointed out that in spite of its warning on Malta's budgetary plans, the Commission still declared Malta to have addressed its macroeconomic imbalance, and advised that this procedure should be lifted.