Update 2: EU calls for changes to COLA mechanism removed from Commission's recommendations

The government this afternoon reacted to the European Commission's decision to place Malta under an Excessive Deficit Procedure by reiterating its commitment to get the deficit down below 3% by the end of this year. The government said it welcomed the Commission's decision to not impose additional measures on the country's budget. "This shows that the European Commission is confident in the new Government's plan, which is a positive sign for the future of the Maltese economy." It said it is committed to ending 2013 with a deficit below the 3% threshold despite the Commission's decision to allow Malta the freedom to do so by the end of 2014. "The Government is committed to meeting these targets, while also carefully addressing inefficiencies and introducing incentives aimed at boosting the country's revenue." It was also noted that in its country specific recommendations, the Commission had removed any reference to changes to the cost of living adjustment mechanism. "This is thanks to the strong defence mounted by the Maltese Government in this regard," the government said. PL STATEMENT In a statement, the Labour Party said the European Commission had given a clear sign of...