Brussels will be keeping a keen eye on Malta’s public finances for at least another year despite a recent positive forecast of the economy. European Commission sources told Times of Malta that, although the deficit was coming down, Brussels was still not convinced that the situation would continue to improve in the coming years.

The Commission’s analysis showed that structural deficit problems remained and was predicting the situation would be turning for the worse.

According to the excessive deficit procedure recommendations issued against Malta last July, the government had to make a structural deficit adjustment of 0.7 per cent of GDP per year for 2013 and 2014. However, according to the forecasts, although Malta will reach its targets for 2013 it will not remain on track this year.

More in Times of Malta and the e-paper on timesofmalta.com Premium.

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