Finance Minister Edward Scicluna this morning expressed himself confident that Brussels will drop the excessive deficit procedure for Malta early next year, probably sometime in March or April.
Addressing a Budget consultation meeting at St George's Square in Valletta, Prof. Scicluna said that the deficit has been reduced below the forecasts of the European Commission both this year and in 2013.
He noted that this year deficit will be of 2.1 per cent by the end of this year, whereas the Commission's estimate was of 2.5 per cent.
Last year the government's deficit was 2.7 per cent, even though Brussels had projected a 3.7 per cent deficit.
As for next year the target was 1.6 per cent while the Commission's estimate was 2.6, the minister said.
He argued that the Commission was still "suspicious" of Malta's financial plan in the wake of the fact that in 2013 Malta had been placed under the excessive deficit procedure, a few months after it had gone out of such a procedure in November 2012.
Touching on the Commission's opinion on the Budget, he said that Malta together with nine other countries was declared 'clean' in terms of its macro economic imbalance. "This means that no red lights are on for the economy contrary to the Opposition's claims," he said.
Commenting on the Budget measures, Prof. Scicluna remarked that this was no longer an accounting exercise. Instead it aimed to promote a certain way of life among sectors of society such as the unemployed, single parents and to reduce dependency on the State.
The chairman of the Malta Council for Economic and Social Development (MCESD), John Bencini, who was present among the audience, urged the government to address concerns on declining exports which had been raised by employers, and the issue of precarious employment which was raised by the unions.
"The government has to put his foot down on the issue of precarious employment," Mr Bencini said.
The minister said that this issue of precarious employment was being taken very seriously, but at the same time he warned that the government had to keep an eye on the country's competitiveness.
Philip Fenech from the GRTU spoke about the introduction of excise tax on tyres which has replaced eco tax. He noted that in the case of heavy trucks this woud translate to an expense of some €200.
The minister said that the government would study the GRTU's concerns