EU to lift Excessive Deficit Procedure for Malta

The European Commission has recommended a lifting the Excessive Deficit Prodecure for Malta in view of the country's consistent path towards a smaller deficit, Finance Minister Tonio Fenech said this afternoon. He said the decision was taken in view of the fact that Malta's deficit had slipped below 3% of GDP last year and remained below that threshold. Speaking at a press conference, Mr Fenech also welcomed an assessment of Malta's economy made by the Commission in its autumn country report. "Economic growth rebounded in the second quarter of 2012 and soft indicators suggest it is still picking up in the second half of the year. For 2012 as a whole, real GDP is forecast to expand by 1%, driven entirely by net exports, which benefit from improved external competitiveness and a remarkably resilient tourist sector. These developments are projected to result in a marked improvement in the current-account balance, which is forecast to reach a surplus of around 2% of GDP, after having recorded a deficit for over a decade. On the downside, domestic demand, including inventories, appears to be rather weak and is forecast to be a drag on growth in 2012," the Commission said. A gradual...