30.6.2015   

EN

Official Journal of the European Union

L 163/35

(1)

By Decision 2013/319/EU (1), on the basis of a recommendation from the Commission, the Council 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. The Council also noted that Malta had not made sufficient progress towards compliance with the debt reduction benchmark and therefore did not fulfil the requirements of the transition period (2) following the correction of its excessive deficit in 2012 (3).

(2)

On 21 June 2013, in accordance with Article 126(7) of the Treaty on the Functioning of the European Union (TFEU) and Article 3(4) of Regulation (EC) No 1467/97, the Council, upon the 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. The recommendation was made public.

(3)

In accordance with Article 4 of the Protocol (No 12) on the excessive deficit procedure annexed to the Treaty on European Union and the TFEU, the Commission provides the data for the implementation of the procedure. As part of the application of that 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, in accordance with Article 3 of Council Regulation (EC) No 479/2009 (4).

(4)

The Council is to take a decision to abrogate a decision on the existence of an excessive deficit on the basis of notified data. Moreover, decisions on the existence of an excessive deficit are to be abrogated only if the Commission's forecasts indicate that the deficit will not exceed the 3 % of GDP threshold over the forecast horizon (5); and the debt ratio fulfils the forward-looking element of the debt benchmark.

(5)

On the basis of the data provided by the Commission (Eurostat) in accordance with Article 14 of Regulation (EC) No 479/2009, following the April 2015 notification by Malta, the 2015 Stability Programme and the Commission's 2015 spring forecast, the following conclusions are justified:

(6)

As from 2015, which is the year following the correction of the excessive deficit, Malta is subject to the preventive arm of the Stability and Growth Pact and should progress towards its medium-term budgetary objective at an appropriate pace, including respecting the expenditure benchmark, and comply with the debt criterion in accordance with Article 2(1a) of Regulation (EC) No 1467/97. In this context, there appears to be a risk of some deviation from the required adjustment of 0,6 % of GDP towards the medium-term budgetary objective in both 2015 and 2016. In 2015, the improvement in the structural balance is forecast to be 0,1 % of GDP below the requirement. While the adjustment projected for 2016 is in line with the requirement, there is a risk of some deviation over 2015 and 2016 taken together. Therefore, further measures will be needed in 2015 and 2016.

(7)

In accordance with Article 126(12) of the TFEU, 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.

(8)

In the view of the Council, the excessive deficit in Malta has been corrected and Decision 2013/319/EU should therefore be abrogated,