VALLETTA (MALTA) (ITALPRESS/MNA) – Malta’s debt burden is expected to return to levels last seen three decades ago within the next four years, Finance Minister Clyde Caruana said.
Speaking at a news conference marking Malta’s exit from the European Union’s excessive deficit procedure, Caruana said strong government revenues are projected to continue despite external economic challenges.
He said the healthy revenue outlook would enable further reductions in both the deficit and debt-to-GDP ratios.
“I expect that, over the next four years, the debt burden will go back to what it was 30 years ago,” Caruana said.
The European Commission announced on Wednesday that it was closing the excessive deficit procedure against Malta after the country reduced its deficit to 2.2% of GDP, below the EU threshold of 3%.
Malta had been placed under the procedure in 2024 when its deficit stood at 4.9% of GDP.
Caruana noted that Malta was the only EU member state removed from the procedure this week, while the Commission expects 14 countries to remain under it next year.
“The trends also show that while deficits in Europe will worsen, the European Commission’s forecasts are different for Malta,” he said.
Prime Minister Robert Abela attributed Malta’s fiscal performance to progressive economic policies and a rejection of austerity measures.
He argued that austerity would have led to weaker economic growth, lower consumption and greater pressure on families and businesses.
Abela said Malta’s economic strategy had helped shield the country from external shocks, including the wars in Ukraine and the Middle East, as well as energy and logistics disruptions.
He also cited recent Eurostat figures showing Malta recorded the lowest inflation rate in the eurozone, describing it as evidence of policies designed to protect households and businesses from global challenges.
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(ITALPRESS).
