In an informal Eurogroup meeting taking place in Riga, Malta's finance minister Prof. Edward Scicluna defended the European Commission with regards to the flexibility it granted to EU member states in drawing and carrying out their own fiscal policies and public spending plans. Prof. Scicluna's argument pointed out that Malta utilised the European Commission's country-specific recommendations wisely in drawing and executing its own public spending strategy.
The background against which Prof. Scicluna's argument was set was Greek's alarming situation. During the informal meeting, the European Commission, European Central Bank and International Monetary Fund informed the ministers about the latest updates and turn of events in the discussions with Greek authorities related to Greek's bailout programme and fiscal policy was an important subject to take into account.
Prof. Scicluna pointed out that making good use of flexibility and space in fiscal policy planning and execution is central. According to the Maltese minister, Malta was able to address the European Commission's country specific recommendations in a way that encouraged economic growth without compromising the current economic stability. Malta endorsed the European Commission's recommendations and then took the initiative to carry out plans that enabled it to successfully achieve its goals.
The minister advised that the Greek situation is dramatic and a solution needs to be found immediately. This needs to be done without further postponing and without following a self-destructive path.
In the afternoon, the minister participated in an informal Economic and Financial Affairs meeting focusing on various factors determining the EU's economic situation. The working session addressed Europe's growth potential and the structural reforms needed to boost it, barriers to investment and issues surrounding financial stability.
On Saturday morning, the meeting will be resumed and the focus will be turn towards the Capital Markets Union and the roles and impacts of banks on various markets.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
