Minister for Finance, Prof. Edward Scicluna, has defended the flexibility granted by the European Commission to EU Member States in determining and executing their fiscal policies, arguing that a more binding country-specific recommendations made by the Commission could stifle Member States' economic growth potential.

Addressing a Eurogroup informal meeting in the Latvian capital, Riga, on Thursday morning, Minister Scicluna spoke about how Malta has exploited this elbow room to come up with its own public spending plan and take a number of important pragmatic measures that have succeeded in catalysing an encouraging economic growth.

"We have achieved our fiscal objectives by making good use of the latitude that was granted to us by the Commission," said Minister Scicluna. "We have managed to consolidate our finances without killing off the economy. Malta's economy is growing, and we managed to achieve this because we agreed to, and believed in, the country-specific recommendations made to us by the Commission. It is encouraging to see the results of our growth-friendly fiscal consolidation strategy."

During the meeting, the European Commission, the European Central Bank and the International Monetary Fund informed the Ministers on the progress in the current discussions with the Greek authorities with regard to the country's bailout programme.

On Greece, Minister Scicluna said that the situation is dramatic enough, and warned against following a self-destructive path. He stressed that a solution must be found without delay, and that postponing taking decisions till May or June will not work because at the end of the day nothing will happen. "We need to find solutions in this very meeting," he said. In comment given to international media, he described the meeting as a "complete breakdown in communication with Greece".

In the afternoon, Minister Scicluna joined his EU counterparts for an informal Economic and Financial Affairs meeting. The working session focused mainly on the economic situation in the EU and financial stability issues, the main barriers to investment, and the structural reforms needed to boost Europe's growth potential. The meeting continues on Saturday morning with an exchange of views on the Capital Markets Union and its form, including the role of banks and its impact on markets of various size and complexity.

In Riga, Minister Scicluna is accompanied by the Permanent Secretary in the Ministry for Finance, Alfred Camilleri.