Addressing a seminar discussing “The Role of Fiscal Policy for Sustainable Economic Growth”, organised by the European Commission Representation in Malta and the Malta Fiscal Advisory Council (MFAC), Minister for Finance Edward Scicluna said that the principle behind the setting up of Malta’s independent fiscal institution was crucial for the Government’s success in the fiscal field.

PRESS RELEASE BY THE MINISTRY FOR FINANCE

“The Government believed in such principle. We didn’t drag our feet on it and took it up to have an independent judgement. Such institution strengthens the Government’s hands in order to get a good diligence accompanied by a sound economic and financial governance,” said Minister Scicluna.

With respect to the surplus Minister Scicluna said, “we worked hard for it and managed to achieve it through reforms and controlled spending. We adhered to the principle that you cannot, and must not, spend what you don’t have. It’s a pity that there’s an attempt to trivialise the surplus by saying that it doesn’t exist or that it’s not real.”

Spending beyond one’s means pitted Malta in Excessive Deficit Procedures three times by the EU Commission between 2003 and 2013, and “it wasn’t a coincidence that each occasion happened on the eve or morrow of a general election.”

Minister Scicluna concluded by referring to the Eurogroup and the European semester. “We are quite proud of what we did. Looking at the future we hope that with other members of the European Union we find a better way that improves the economic semester.”

Tuesday 24th October 2017