Brussels says Malta must cut spending

The European Commission will be asking the Government to lower its spending, particularly by introducing health and pension reforms to rein in its growing deficit. Commission sources told Times of Malta that EU Commissioners are tomorrow expected to approve a decision to recommend the start of another Excessive Deficit Procedure (EDP) against Malta, a few months after the island was let off the hook over its government finances. In 2009, after exceeding the three per cent deficit threshold allowed by EU rules, the Commission had started an EDP against Malta. This was closed last year after the Commission made sure the island had come into line. Following the Commission’s recommendation, which will have to be backed by EU finance ministers later this year, Malta must present the EU with plans on how to bring down its deficit beneath three per cent of GDP (the country’s economic output). Tomorrow, the Commission is also expected to publish specific economic recommendations to be followed by Malta in the coming months. The sources said the Maltese plan should include lower spending in certain areas and the Commission will have the right to instruct the Government to revise its plans...