Brussels will next month decide whether to put Malta under an excessive deficit procedure after the deficit crept above 3 per cent.

Sources close to the European Commission said that the EU executive is verifying data submitted by Malta and it was “likely” that the island would again be subjected to this scrutiny procedure.

The deficit was 3.3 per cent of GDP. Finance Minister Edward Scicluna explained in his Budget speech that this was caused by a drop in revenue.

He said the government would explain its position to the EU and restore the position to below three per cent by the end of this year.

A Commission spokesman said:

“It is essential for Malta to make every effort to bring the deficit below three per cent of GDP in 2013 in a durable way.”

Full story in The Times.

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