EU Finance Commissioner Valdis Dombrovskis and Finance Minister Edward Scicluna today downplayed the burgeoning size of Malta’s public sector.

Asked about the public sector increase, Mr Dombrovskis said it is a matter for the Maltese government to decide, and is not of concern to the EU Commission as long as Malta’s public finances remain in check.

On his part, Finance Minister Edward Scicluna said the government has managed to reduce its spending deficit which has not been done by waving a “magic wand.”

Professor Scicluna said he is satisfied that public sector employment as a ratio of Gross Domestic Product (GDP) “is what it was before.”

On Malta’s economy, the EU Finance Commissioner noted that Malta’s economic performance is substantially above the EU and euro zone average, and the Commissioner has forecast Malta’s economy to grow by a further 3.6 per cent.

The Commissioner said Malta is managing to create jobs and is addressing its fiscal problems. The deficit has come down to 1.8 per cent this year and debt is on a downward trajectory, he said.

Certain challenges need to be address, such as pension reform, female participation in the labour market, public procurement laws and administrative hurdles in the judiciary, the Commissioner said.

Questioned about the potential of a Greek exit from the euro zone, the Mr Dombrovskis said the Commission is basing its work on the assumption that Greece will stick with the euro.