Malta over-ruled as EU approves country specific recommendations

Malta was over-ruled today as the European Commission approved Country-Specific Recommendations calling on each member state to bring about major economic reform.

Malta was the only country to object to the recommendations, disagreeing with its proposals for Malta to gradually further raise the retirement age and change the cost of living mechanism.

Finance Minister Tonio Fenech renewed Malta's opposition during a meeting of EU Finance Ministers. 

Mr Fenech said this was an unacceptable take-it or leave it approach.

He insisted that retirement age did not need to be raised further since the pensions component in GDP was not expected to rise.

Furthermore, the EU was proposing to omit from the Cost of Living formula imported items which were contributors to inflation and which the government therefore felt should not be omitted. 

The recommendations are not legally binding, although the EU is expected to insist on their implementation.