The President of the Eurogroup - the informal body where Ministers of Eurozone Member states discuss issues related to their common responsibilities in relation to the Euro, has praised Malta for its strong economic post-pandemic recovery, and for having the lowest unemployment rate in history.

President of the Eurogroup Paschal Donohoe, who is also the Finance Minister for Ireland, spoke in a press conference alongside Finance Minister Clyde Caruana about the challenges Europe has faced economically in the face of the Covid-19 pandemic, and now with inflation and the war in Ukraine.

Donohoe said that despite the challenges, the Maltese economy continued to grow while the unemployment rate remained below 3%. He said that this is a testament to the work Caruana has done in response to the pandemic.

Donohoe expressed his satisfaction towards the planning of the Maltese government in the way it plans to spend €300 million in European grants. Donohoe said that importance on sustainability should be stressed when giving the aid so that new economic challenges do not arise in the future.

Donohoe said that there is growing uncertainty in the Euro area due to higher levels of inflation, which currently stands at an average of 7.6% this year, and 4% in the coming year.

Despite this, the unemployment rate within the Euro area is at a new low, standing at 6.6% whilst also continuing to see growth in the economy, Donohoe said.

Caruana said that during the private meeting he had with Donohoe, the European agenda for the next six months was discussed as well as the current challenges which include those of energy and inflation.

Caruana said that government will take it upon itself to lessen the burden of inflation for future generations, keeping an eye on the deficit to ensure it is sustainable, and ensure that GDP levels continue to hover around 60%.

Caruana said that the European Funds were also discussed, through which the Maltese economy will be able to continue moving forward.