Squabble over Commission's report

The European Commission's report on public finances elicited two different interpretations yesterday with the opposition saying it justified their criticism and the government insisting it confirmed its good management of state funds.

Opposition spokesman Charles Mangion said the Commission's report raised doubts over the government's deficit target of 1.5 per cent for 2009 and its projected GDP growth of 2.2 per cent.

He insisted the Commission justified the criticism the opposition had been levelling at the government for its lack of diligence in the management of public funds because of a pre-electoral spending spree. Finance Minister Tonio Fenech was quick to react saying the Commission stopped short of starting formal excessive deficit procedures against Malta since it deemed the government's consolidation of public finances to be on track.

Mr Fenech did not dispute the Commission's prediction that economic growth for 2009 is going to be 0.7 per cent instead of 2.2 per cent but pointed out that Malta is still slated to be one of the few countries in the EU to register growth.

The two sides were reacting to the European Commission's analysis of the government's budgetary plans up to 2011 released this week.

ksansone@timesofmalta.com