Malta has been given until the middle of next month to show Brussels "convincing evidence over sufficient, permanent fiscal measures" to rein in its structural deficit on a sustainable manner.

EU Economic Chief Olli Rehn said this morning in Brussels that Malta, together with Cyprus, Belgium, Hungary and Poland are being given an early warning on the state of their public finances and will later today be receiving a letter specifying what the Commission is expecting out of them.

"I have already given an early warning to the ministers of these countries during the last Ecofin Council (held on Tuesday) and will be sending letters with our requests to these specific member states," Commissioner Rehn said.

Under the excessive deficit procedure, Malta has until the end of this year to cut its deficit to under 3 per cent of GDP.

According to the Commission's forecasts, issued this morning, Malta might be missing its target as it is expected that its deficit will rise again to 3.5 per cent in 2012.

The Prime Minister said last Sunday that Malta's deficit will slip below 3% of GDP by the end of the year.

Malta has already managed to slash its deficit considerably from 4.6 per cent in 2008.

The Commission is also asking Malta to give in writing "full and detailed plans" for the 2012 budget.