In the world of economics one doesn’t frequently encounter bouts of amusement. After all, it is known as the ‘ dismal science’!

I am, therefore, thankful to the Chamber for Small and Medium Enterprises – GRTU for obliging us in its press release on the decision to initiate an excessive deficit procedure.

The GRTU lamented that the European Commission did not give “much weight to the fact that Malta’s is an open economy that depends on its external environment”.

Which economy doesn’t? Furthermore, where is the relevance to a government’s deficit budgeting? Confusion with ‘balance of payments’, perhaps?

I feel satisfied that, finally, we have prevailed on the Commission to remove the cost of living adjustment altogether from its list of ‘country-specific recommendations’.

It could even go further by actually encouraging other member states to emulate it.

I’m perplexed, however, at the Commission’s criticism that there exists too heavy a bias in our economy’s financial structure in favour of loan, rather than, equity capital. Quite disturbing if true. Not a single rectifying recommendation, though. Pity.