Juncker exonerates Malta from excessive deficit procedure

Juncker was addressing the media in Brussels at the end of a meeting for the EU's economic and finance ministers (ECOFIN) and the eurozone.

On January 12, the European Commission approved the action taken by the Maltese government to curb the national deficit.

"Malta took the right corrective measures to make sure to keep to its commitments. We are very confident that the island is on the path to keep its public finances under the three per cent level of GDP in both 2012 and 2013," Economic and Monetary Affairs Commissioner Olli Rehn told a the media in Brussels.

He praised Malta's efforts and commended the steps it took in the last budget.

In its 2012 budget estimates, the government announced a number of measures to tweak its recurrent costs this year and further adjustments were taken last week to reduce its expenditure by a further 0.5 per cent of GDP.

Finance Minister Tonio Fenech welcomed this preliminary decision, describing it as the best "certificate" that Malta's finances were now in a sustainable position.

On January 6, Prime Minister Lawrence Gonzi announced further measures to curb the deficit, which included the withdrawal of all ministers hononaria increase, and cuts to the tune of a further €40 million in government expenditure across the board.