Malta - Economic Reform

Short-term priorities:

• establish a medium-term economic policy for the creation of a stable and sound macroeconomic environment;
• establish clear long-term policies on taxation and bring previously unrecorded economic activity within the tax net;
• define an industrial restructuring policy to accelerate that process, in particular in the agri-food and furniture industries;
• continue with privatisation.

Assessment (November 2001)

These priorities had already been met in 2000.

Evaluation (October 2002)

Studies have been carried out to help define a restructuring policy for the agri-foodstuffs sector but no clear plan has been adopted.

Assessment (November 2003)

Please refer to the fact sheets on the adoption of the Community acquis.

Medium-term priorities:

• reduce public expenditure and the budget deficit;
• improve tax collection and reform the public sector;
• restructure loss-making public sector enterprises and ensure that they face market discipline;
• strengthen the financial system to prepare for a fully liberalised capital account regime;
• complete the process of privatisation;
• continue efforts to create the right climate for business start-ups and development;
• establish an annual fiscal surveillance procedure with a view to approximating accounting, monitoring and control arrangements for public finances, specifically fiscal positions, in the European Union.

Assessment (November 2001)

The Maltese budget deficit has been reduced. Tax collection has been improved. Restructuring of loss-making public sector enterprises has not been completed, nor has the privatisation process. The financial system has been strengthened by liberalisation, greater competition and privatisation. Efforts to create the right climate for business have continued, inter alia via the institute for the promotion of SMEs. An annual fiscal surveillance procedure has been established.

Evaluation (October 2002)

Government efforts on budgetary consolidation have been hindered by the worldwide economic slowdown. The restructuring of loss-making public sector enterprises has progressed slowly. Privatisations have continued, including the Maltese postal service and the airport. Restructuring and development of SMEs has continued. Partnership for accession priorities in this field have been met to a limited extent.

Assessment (November 2003)

Please refer to the fact sheets on the adoption of the Community acquis.

Following the signing of the Accession Treaty on 16 April 2003, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia acceded to the European Union on 1 May 2004.

REFERENCES

Council Decision 2000/249/EC of 20.03.2000Official Journal L 78, 29.03.2000

Commission Report COM(2001) 700 final - SEC(2001) 1751Not published in the Official Journal

Commission Report COM(2002) 700 final - SEC(2002) 1407Not published in the Official Journal

Commission Report COM(2003) 675 final - SEC(2003) 1206Not published in the Official Journal

Treaty of Accession to the European Union [Official Journal L 236, 23.09.2003]

Last updated: 19.11.2004