The European Commissioner for Economic and Monetary Affairs, Joaquim Almunia, announced this morning that the European Commission will not recommend the opening of an Excessive Deficit Procedure (EDP) against Malta despite going over the 3% to GDP deficit benchmark allowed by EU rules.

Speaking in Brussels, Mr Almunia said that although Malta has indeed broken the rules in 2008, the situation was under control.

"We think that Malta’s deficit problem last year was temporary and the government is taking steps to address the situation this year. That is why we think that an EDP should not be opened against Malta this year."

He added that the EU executive’s analyses shows that the island’s deficit should fall to 2.9 percent this year from 3.3 registered in 2008.

At the same time, Mr Almunia said that the Commission is recommending the start of EDP procedures against France, Greece, Spain, Ireland and Latvia.

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