The European Commission is seeking clarifications on Malta’s Budget for next year, along with five other eurozone countries.
The government yesterday said it had no knowledge of this issue, but Times of Malta confirmed that Malta, with Italy, France, Austria and Slovenia, have been asked for clarifications on their draft Budgets sent to Brussels last week.
“At this stage, the Commission is demanding clarifications,” Commission sources told this newspaper .“This doesn’t mean we will not approve Malta’s draft Budget or will ask the island for a revision. We are just seeking more information.”
Since last year eurozone members have been obliged to show their plans to Brussels before approving their Budgets in their respective parliaments.
According to EU rules, within a week of receipt the Commission is obliged to request additional information from member states whose plans might pose a problem.
In Brussels, this is considered to be an initial warning that the plan may be rejected.
Last year, the Commission had rejected the draft Budget sent to Brussels by Finance Minister Edward Scicluna.
In its formal opinion, the Commission had invited Malta to take the necessary measures within the national budgetary process to ensure the Budget was fully compliant with the EU’s stability and growth pact.
This year, the Commission’s formal opinions are expected to be published by next week.
The government yesterday said that although it was not aware of an issue with the Commission, it recognised that it could be asked for further clarifications.
“The main issue in Malta’s case is when the measures related to the Budget are announced,” the government said.
Asked to confirm whether Malta had received a letter from the Commission and to say why its Budget was being singled out for the second year in a row, the Finance Ministry said it had not yet received any communication from Brussels.
According to the Maltese draft Budget plan, higher excise duties and car licence fees could be announced in line with the government’s policy of shifting from direct to indirect taxation measures.
The government is looking to increase revenue by €50 million.
It is also forecasting an income of €41 million from the sale of passports, an additional €21.6 million in indirect taxation on consumer goods and services, and €4.3 million from a revision in fees.
On the expenditure side, the government is anticipating €5.7 million more on supplementary children’s allowance and a higher equity injection in Air Malta to the tune of €24.4 million as part of the restructuring plan.