The European Commission is expected to recommend removing Malta from the Excessive Deficit Procedure (EDP).
Malta would be the only country leaving the procedure this year, while several other EU countries remain under enhanced fiscal scrutiny.
Two years ago, Malta’s budget deficit stood at 4.9% of GDP, well above the European Union limit of 3% of GDP.
By reducing its deficit below the 3% threshold, Malta has met one of the main requirements for exiting the EDP.
Exiting the EDP signals that Malta’s public finances are considered to be back within EU fiscal rules. This can:
- Improve confidence among investors and credit-rating agencies.
- Reduce pressure from EU institutions to implement corrective budget measures.
- Give the government greater flexibility in economic and fiscal planning.
- Enhance Malta’s reputation for fiscal discipline within the EU.
