European Union finance ministers will today analyse the opinion of the European Commission on Malta's progress towards reaching the targets of the stability and growth pact, particularly the efforts being made to bring the deficit in line with EU rules.

The discussion in Brussels will be held in the presence of Prime Minister Lawrence Gonzi assisted by Parliamentary Secretary Tonio Fenech.

The Ecofin council will today give its final recommendation. Sources close to the Council told The Times that the finance ministers are expected to adopt the Commission's conclusion that the policies and reforms being adopted by the government are delivering results and are consistent with EU policies.

Last December Malta submitted an update of its stability and convergence programme to the Council and to the Commission highlighting the medium-term financial and economic objectives of the government. Following its preliminary analysis, published last month, the Commission concluded that during this year, Malta should be able to correct its structural deficit below the three per cent of GDP mark allowed by the EU.

This would allow the Commission to withdraw the excessive deficit procedure initiated against Malta in 2004.

The Commission's report also forecasts an improvement in a number of other important economic and financial indicators including the lowering of debt levels and inflation.