Repeated failure by the Government to meet fiscal targets over the past few years has left the country with “massive” increases in public debt, according to Opposition economic development spokesman Charles Mangion.

He was reacting to a recent report by Moody’s, which affirmed Malta’s A3 rating while leaving its ‘negative’ out-look unchanged.

Moody’s complimented the Government on successfully trimming the deficit to 2.7 per cent but also warned that debt was too high and the risk of missing 2012 targets remained.

Malta’s debt, at well over 70 per cent, is significantly higher than the 60 per cent threshold established by the EU but still lower than that in many other eurozone econ-omies.Moody’s also diverged from the Government’s predicted growth and deficit figures. While the Government expects growth of 1.5 per cent and a deficit level “well below” the three per cent mark this year, Moody’s was less bullish, forecasting a growth of 0.5 per cent and a 2.9 per cent deficit by the end of this year.

To Dr Mangion, Moody’s GDP growth forecast was evidence that the Government “has grossly overestimated 2012 growth figures”. Political instability,Dr Mangion added, was fostering uncertainty among econo-mic operators.