FILE PHOTO – Three flags of the European Union fly in front of the Berlaymont building in Brussels, the seat of the European Commission. (is associated with: «EU proceedings against Malta dropped after budget deficit reined in») Alicia Windzio/dpa
EU infringement proceedings against member state Malta over its excessive government deficit have been dropped, the bloc’s finance ministers announced in Luxembourg on Friday.
The decision was justified because the general government deficit had been sustainably reduced to below 3% of gross domestic product (GDP), according to a statement.
The European Commission monitors whether EU member states comply with strict limits. The so-called Stability and Growth Pact stipulates, among other things, that a member state’s debt level must not exceed 60% of economic output and its budget deficit remains below 3% of GDP.
Due to excessive deficits, infringement proceedings are currently pending against Austria, Belgium, Finland, France, Hungary, Italy, Poland, Romania, and Slovakia. The possibility of action against Bulgaria is also on the table.