Updated convergence plan submitted to EU

A revised convergence report incorporating the new measures announced in the budget for 2005 has been presented to the European Commission.

Sources close to the Commisison described the update as a routine excercise. Yet, the report will be examined with particular attention as it includes concrete measures as to how Malta's financial situation will fall in line with the EU's strict financial criteria.

The sources said the Commission services will now draw up a counter report which will be discussed during a coming EU Finance Ministers' meeting in the begining of next year.

Tonio Fenech, Parliamentary Secretary in the Finance Ministry, confirmed that Malta had in deed submitted the update plan.

The government had presented its original convergence programme to the European Commission last May. The document sets out a framework for the consolidation of the country's fiscal situation and for the containment and gradual reversal of its growth in debt levels for the period 2004-7.

Prime Minister Lawrence Gonzi, in his capacity as Minister of Finance, discussed the convergence programme during a meeting of the EU Council of Economic and Financial Affairs Ministers (ECOFIN) early last July.

According to EU rules a member state's deficit cannot exceed three per cent of GDP and the national debt should be below 60 per cent of GDP. The government's aim is to reach these targets by the end of 2007.