Malta is expected to reach the financial targets required to enable the country to adopt the euro in 2008 as projected, Prime Minister Lawrence Gonzi said. The Prime Minister was speaking to journalists in Helsinki, where he was attending the informal meeting of EU finance ministers.
The Malta Sunday Times reported Dr Gonzi saying that independent projections by the government as well as those being made by the European Union showed that Malta was on the right track to keep the deficit under control and introduce the euro in 2008.
Dr Gonzi said he had discussed the government's pre-budget document with Joaquin Almunia, the EU Commissioner for Economic and Monetary Affairs and informed him that last year's budget targets would be met.
On his part, Commissioner Almunia informed him that the Commission's forecasts were very similar to those of the government. "The Commission is confirming what we are saying and I am confident that Malta would satisfy the criteria to enable it to adopt the euro in 2008," Dr Gonzi said.
During the informal meeting of EU finance ministers, higher energy prices and their impact on EU inflation were also discussed, The Malta Sunday Times reported.
Prime Minister Gonzi said that the Maltese government is doing its utmost to ensure that the impact of higher oil prices is minimised and to stimulate economic growth and attract foreign direct investment.
Dr Gonzi also said that the tourism sector is a challenge to the economy. Another issue that has to be tackled is the control of prices, especially of medicinal products.
The government would be announcing its position on this issue very shortly, Dr Gonzi said.
Asked about what type of tax relief one could expect in the budget, Dr Gonzi mentioned the reduction of the surcharge on water and electricity, which would affect people across the board, including the self-employed, the adjustment of the income tax bands or alterations to the departure tax.