Recommendation for a Council Decision abrogating Decision 2013/319/EU on the existence of an excessive deficit in Malta

By Council Decision 2013/319/EU of 21 June 2013, following a recommendation from the Commission, it was decided that an excessive deficit existed in Malta. The Council noted that the general government deficit in Malta had reached 3.3% of GDP in 2012, thus exceeding the 3% of GDP Treaty reference value, while general government gross debt was above the 60% of GDP Treaty reference value and Malta did not make sufficient progress towards compliance with the debt reduction benchmark, in line with the requirements of the transition period following the correction of its excessive deficit in 2012.

On 21 June 2013 the Council, based on a recommendation from the Commission, addressed a recommendation to Malta with a view to bringing the excessive deficit situation to an end by 2014 at the latest. In accordance with Article 4 of the Protocol on the excessive deficit procedure annexed to the Treaties, the Commission provides the data for the implementation of the procedure. As part of the application of this Protocol, Member States are to notify data on government deficits and debt and other associated variables twice a year, namely before 1 April and before 1 October.

The Council should take a decision to abrogate a decision on the existence of an excessive deficit on the basis of notified data. Moreover, a decision on the existence of an excessive deficit should be abrogated only if (i) the Commission forecasts indicate that the deficit will not exceed the 3% of GDP threshold over the forecast horizon; and (ii) the debt ratio fulfils the forward-looking element of the debt benchmark.

In accordance with Article 126(12) of the Treaty, a Council Decision on the existence of an excessive deficit is to be abrogated when the excessive deficit in the Member State concerned has, in the view of the Council, been corrected. In the view of the Council, the excessive deficit in Malta has been corrected and Decision 2013/319/EU should therefore be abrogated.

EUR-Lex: COM(2015)242: Follow the progress of this recommendation through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2015:242:FIN

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