The agreement reached between EU Finance Ministers to retain the VAT exemption on food and medicines, was important from an economic point of view, the Malta Chamber of Commerce, Enterprise and Industry said in a statement.

Primarily, the agreement ensures that there is no shock to the general price level - to the benefit of local consumers. It also avoids an element of cost-push inflation, given that food is also a basic raw-material for many business sectors. The avoidance of any unnecessary economic pressures – at this particular moment in time – is positive, the chamber said.

The agreement also underlines an important issue for the country in that if our arguments are sound and backed by solid facts, Malta’s influence - however small - within the European Union will be heard.