The reduction of Malta's deficit to below the three per cent mark was on target and will be achieved by the end of the year, Prime Minister Joseph Muscat said today.

In a meeting with the Confederation of Malta Trade Unions, Dr Muscat said that soon after being elected to office, the Government faced a slippage in the deficit which resulted in the EU opening an excessive deficit procedure against Malta.

He said he was confident - and figures so far showed - that the country was on target and would manage to reduce its deficit under the EU’s three per cent threshold.

Dr Muscat noted that the EU had not imposed any specific measures on Malta but the Government made an internal spending review and cut its costs, while focusing on output.

He told the unions that the Government had an ambitious legislative programme to set in motion once Parliament reconvened in a week’s time, among which was the budget.

He said there would be no surprises in the budget and said this was just the first phase of the implementation of the electoral programme.

Dr Muscat also said that the Government's energy programme was on target and would be achieved within the promised time frames.

He mentioned the investment programmes the Government had embarked upon, with which it was attracting investment from foreign companies.

Among these, he said was the promise of sale agreement with China which would invest in Enemalta.

Dr Muscat will next week travel to Israel where potential investment existed, especially in the health sector.