Malta is objecting to Brussels’ intrusion in the presentation of member states’ national budgets and wants a significant differentiation between the offenders and those abiding by the rules.
Malta, together with Sweden and Finland, formally objected to the European Commission’s latest proposals during a meeting of EU finance ministers held behind closed doors.
The Commission is recommending that member states should first submit their draft budgets to its attention by October 15 of each year before presenting them to their national parliaments.
The European Parliament is proposing an even tighter time frame, opting for October 1.
European Council sources said Malta had objected to such intrusion and wanted laxer rules for member states that were in line with the general budgetary rules of the EU.
Asked for an official position over this sensitive issue in ongoing negotiations on the “two-pack” rules presented by the Commission last November, a government spokesman confirmed Malta was resisting the time frame proposed by Brussels.
“Malta’s position... is that the level of intrusion by the Commission into member states’ budgetary processes should be differentiated according to the level of risk which that member state presents to the stability of the euro area,” the spokesman said.
According to Malta, member states not under the excessive deficit procedure should not be burdened with the same level of reporting requirements as those breaching EU commitments.
“The Commission has recognised this principle and is proposing member states under the excessive deficit procedure to report more frequently,” the spokesman said.
Although Malta is facing an excessive deficit procedure for surpassing the three per cent of GDP deficit threshold in 2009, it is expected to be one of a few member states where the situation will change within a few months.
In a move to deepen further economic and fiscal integration in the eurozone, the Commission published a raft of rules last November aimed at strengthening those underpinning the euro and their surveillance.
If, following the Commission’s assessment, national budgets are not in line with the EU’s plans and the euro’s rules, Brussels will have the right to publish its opinion and request a revision of the Budget in question before this can be presented to the national Parliament for its consent.
EU president José Manuel Barroso rejected accusations that the rules might be infringing member states’ sovereignty. He insisted the EU Executive was just trying to exercise fiscal and economic discipline to ensure problems facing the euro, particularly due to high deficits and debt, were not repeated.
The new rules will have to be agreed by member states and the EP before coming into force.