The Nationalist Party has welcomed the retention of Malta’s ratings by agency Standard & Poor’s, which recognised the continuous efforts taken in recent years to strengthen its economy.
The agency kept the rating at BBB+/A-2’ with a stable outlook, but PN finance spokesman Tonio Fenech said its warning about the country’s fiscal policy that led to an excessive deficit procedure by the EU could not be taken lightly.
He said the agency had noted a six per cent increase in public expenditure, which led it to question the government’s fiscal targets.
Mr Fenech said this comment did not bode well for Malta’s efforts to show it enjoyed fiscal stability, a prerequisite for the attraction of foreign direct investment.
While admitting economic growth was higher than it had predicted, the agency drew the government’s attention to the fact that it was still below the level reached before the 2008 financial crisis.
Mr Fenech urged the government to draw up an economic plan to attract productive investment to Malta.