A report on how Malta plans to address its excessive deficit by the end of next year has been sent to Brussels, Times of Malta has learnt, but it is still under wraps.

A European Commission spokesman told this newspaper the report was submitted on time and that the EU Executive was expected to issue its recommendations in November.

According to an excessive deficit procedure opened by Brussels, Malta had until October 1 to declare what corrective measures it will be taking to bring the deficit down to below three per cent of GDP by the end of 2014, indicate revenue and expenditure targets and outline discretionary measures to comply with EU rules.

If the Commission is not satisfied with the proposed programme, it may recommend further action to be taken by the Government.

The Commission spokesman said Malta had also submitted its European partnership programme, which details the structural reforms deemed necessary to support an effective and durable correction of the deficit.

Malta has to forward its draft national Budget for 2014 by October 15. This will also be reviewed by the Commission and eurozone member states to check whether it is complaint with the overall fiscal policy of the euro area.

The EU Executive is expected to issue its recommendations in November

In July, following Finance Minister Edward Scicluna’s announcement that Malta ended 2012 with a deficit of 3.3 per cent of GDP, the Commission started correction procedures against the island.

According to EU rules, member states have to keep their annual deficit below three per cent of GDP.

The previous Nationalist Administration was aiming to end the year with a 2.3 per cent deficit. However, the Labour Government said targets had been overshot.

The Nationalist Opposition accused the new government of playing with figures by adding last year’s deficit to produce a lower deficit for this year.

In his Budget speech, Prof. Scicluna had said the Government intended to persuade the Commission not to proceed with an excessive deficit procedure, as the slippage in 2012 was just temporary. However, its attempts were unsuccessful.