The Nationalist Party today expressed concern that the government is undermining Malta's credibility and thus harming the economy.

In a statement following comments made by the finance minister at the parliamentary economic affairs committee yesterday  (see http://www.timesofmalta.com/articles/view/20130521/local/scicluna-says-malta-not-being-believed-in-talks-to-avoid-excessive-deficit-procedure.470677 ) the PN noted that Prof Scicluna in his budget speech had expressed confidence that Malta would not be put under an excessive deficit procedure despite the deficit having risen beyond three per cent.

But Prof Scicluna beat the retreat yesterday and admitted that the European Commission had reacted negatively to the government's decision to retain the budget while raising the deficit projection, and without taking corrective action.

It was especially worrying, the PN said, that the government had no plan to address the country's economic problems. It was this which was undermining Malta's credibility and thus harming the economy, the PN said.