The Prime Minister said this afternoon that EU forecasts that Malta's deficit would widen next year were a consequence of the European Commission not believing Malta because of the actions of the former government.

"Unfortunately, our predecessors did not keep their word," Dr Muscat told a press conference.  

Dr Muscat said he was hopeful of encouraging signs from the EU in the coming weeks.

The new government, he said, was getting results because it was already showing that the deficit would drop below 3% this year.

Asked whether he was expecting the EU to close its excessive deficit procedure for Malta next year, Dr Muscat said that he would like to examine the situation on a quarter by quarter basis.

He also noted that while the government yesterday projected economic growth of 1.7 per cent next year, the EU's projection was actually slightly higher, a situation which showed how the government could not be accused of being optimistic in its projections, something which also used to happen in the past.

TAX BURDEN

Dr Muscat also denied PN claims on the tax burden in the wake of yesterday's Budget.

He said it was simplistic of the Nationalist Party to have claimed yesterday that the tax burden was increasing to €400 for every person.

Tax revenue, he said, had been divided by 400,000 (the size of the population). However taxation was also paid by companies and institutions.

Dr Muscat insisted that revenue from indirect taxation announced in the Budget would be increasing by €21.4 million.

Deputy Prime Minister Louis Grech said the tax burden on ordinary people would be about €55 per capita, but, he said, the people would be given €206 back.

CITIZENSHIP PROGRAMME

Dr Muscat defended the Individual Investment Programme and harshly criticised the Nationalist opposition for its “childish attitude”.

He denied that Malta was selling citizenship cheaply.

Accusing the opposition of “scaremongering” in order to harm the country, Dr Muscat alleged that a Nationalist MP was involved in a bid by one of the competing companies when the government issued its call for submissions by companies wishing to run the scheme. He refused to name the MP.

Asked specifically whether Malta was having talks with the United States over this scheme (and its possible impact on the Visa Waiver Programme), the Prime Minister avoided a direct reply and said that “the government discusses with various foreign governments.”

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