Updated convergence programme of Malta, 2006-2009

Please note

This page contains a limited version of this dossier in the EU Monitor.

Contents

  1. Current status
  2. Key information
  3. Key dates
  4. Legislative text
  5. Original proposal
  6. Sources and disclaimer
  7. Full version
  8. EU Monitor

1.

Current status

This opinion has been published on March 29, 2007.

2.

Key information

official title

Council opinion of 27 February 2007 on the updated convergence programme of Malta, 2006-2009
 
Legal instrument Opinion
Original proposal SEC(2007)140 EN
CELEX number23 32007A0329(03)

3.

Key dates

Document 27-02-2007
Publication in Official Journal 29-03-2007; OJ C 72 p. 9-12
End of validity 31-12-9999

4.

Legislative text

29.3.2007   

EN

Official Journal of the European Union

C 72/9
 

COUNCIL OPINION

of 27 February 2007

on the updated convergence programme of Malta, 2006-2009

(2007/C 72/03)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 9(3) thereof,

Having regard to the recommendation of the Commission,

After consulting the Economic and Financial Committee,

HAS DELIVERED THIS OPINION:

 

(1)

On 27 February 2007 the Council examined the updated convergence programme of Malta, which covers the period 2006 to 2009.
 

(2)

The macroeconomic scenario underlying the programme envisages that real GDP growth will hover around 3 % over the programme period. Assessed against currently available information, this scenario appears to be based on favourable growth assumptions for 2007 and markedly favourable ones thereafter, especially due to the optimistic medium-term evolution of the external sector. Less favourable net exports in the medium term than foreseen in the programme could heighten the external imbalance recorded in recent years. Inflation projections appear plausible.
 

(3)

For 2006, the general government deficit is estimated at 2,9 % of GDP in the Commission services' autumn 2006 forecast, against a target of 2,7 % of GDP set in the previous update of the convergence programme. The estimated outturn for 2006 in the new update (2,6 % of GDP) is below that projected in the Commission services' autumn 2006 forecast and seems plausible in the light of recent information on GDP growth and government finance cash data.
 

(4)

The budgetary strategy outlined in the update aims at reducing the deficit below the 3 % of GDP reference value in 2006 and at pursuing fiscal consolidation thereafter. The update foresees a gradual reduction in the general government deficit leading to a broadly balanced budget by 2009. With a projected decline in the interest burden, the primary surplus is expected to reach 3

% of GDP by 2009. The adjustment is to be achieved through a cut in the primary expenditure ratio by almost 5

Formula

percentage points of GDP, which more than offsets a decline in the revenue ratio by almost 3

Formula

percentage points of GDP. Despite the success in restraining overall spending, healthcare expenditure followed an upward trend in the past years. Lower recourse will be made to deficit-reducing one-off measures than in the recent past. The programme broadly confirms the planned nominal budgetary adjustment in the previous update against a much more favourable macroeconomic scenario.
 

(5)

The structural deficit (i.e. the cyclically-adjusted deficit net of one-off and other temporary measures) calculated according to the commonly agreed methodology is planned to improve from around 3 % of GDP in 2006 to

Formula

% of GDP at the end of the programme period. As in the previous update of the convergence programme, the medium-term objective (MTO) for the budgetary position presented in the programme is a balanced position in structural terms but the new programme does not aim to achieve the MTO within the programme period. As the MTO is more demanding than the minimum benchmark (estimated at a deficit of around 1

Formula

% of GDP), achieving it should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit. The MTO lies within the range indicated for euro-area and ERM II Member States in the Stability and Growth Pact and the code of conduct and adequately reflects the debt ratio and average potential output growth in the long term.
 

(6)

The risks to the budgetary projections in the programme appear broadly balanced...


More

This text has been adopted from EUR-Lex.

5.

Original proposal

 

6.

Sources and disclaimer

For further information you may want to consult the following sources that have been used to compile this dossier:

This dossier is compiled each night drawing from aforementioned sources through automated processes. We have invested a great deal in optimising the programming underlying these processes. However, we cannot guarantee the sources we draw our information from nor the resulting dossier are without fault.

 

7.

Full version

This page is also available in a full version containing the legal context, de Europese rechtsgrond, other dossiers related to the dossier at hand and the related cases of the European Court of Justice.

The full version is available for registered users of the EU Monitor by ANP and PDC Informatie Architectuur.

8.

EU Monitor

The EU Monitor enables its users to keep track of the European process of lawmaking, focusing on the relevant dossiers. It automatically signals developments in your chosen topics of interest. Apologies to unregistered users, we can no longer add new users.This service will discontinue in the near future.

  • 1. 
    OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). All the documents referred to in this text can be found at the following website:

     
  • 2. 
    On 7 December 2006, the Maltese authorities transmitted to Eurostat new GDP data since 1995, showing - with respect to figures published in September 2006 - downward revisions in nominal GDP levels up to around 1% between 1996 and 2003. For 2004 and 2005, nominal GDP has been revised upwards by 0.4% and 0.9%, respectively, and for the first half of 2006 the revision corresponds to 1.1%. These revisions were carried out within the regular assessment process of compliance with Eurostat's statistical practices. The latest figures have been used by the Commission in its assessment of the updated programme.

     
  • 3. 
    OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). The documents referred to in this text can be found at the following website:

     
  • 4. 
    In particular, the data on sectoral balances in particular forecasts for net lending/borrowing vis-à-vis the rest of the world for 2006-2009 and employment and labour productivity in hours worked are not provided.

     
  • 5. 
    Communication from the Commission to the Spring European Council,
     
  • 6. 
    OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). All the documents referred to in this text can be found at the following website:

     
  • 7. 
    OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). All the documents referred to in this text can be found at the following website:

     
  • 8. 
    Communication from the Commission to the Council and the European Parliament,
     
  • 9. 
    OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). The documents referred to in this text can be found at the following website:

     
  • 10. 
    Communication from the Commission to the Spring European Council,
     
  • 11. 
    In particular, the data on sectoral balances in particular forecasts for net lending/borrowing vis-à-vis the rest of the world for 2006-2009 and employment and labour productivity in hours worked are not provided.

     
  • 12. 
    OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p.

    1). All the documents referred to in this text can be found at the following website:

     
  • 13. 
    On 7 December 2006, the Maltese authorities transmitted to Eurostat new GDP data since 1995, showing - with respect to figures published in September 2006 - downward revisions in nominal GDP levels up to around 1% between 1996 and 2003. For 2004 and 2005, nominal GDP has been revised upwards by 0.4% and 0.9%, respectively, and for the first half of 2006 the revision corresponds to 1.1%. These revisions were carried out within the regular assessment process of compliance with Eurostat's statistical practices. The latest figures have been used by the Commission in its assessment of the updated programme.

     
  • 14. 
    OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p.

    1). The documents referred to in this text can be found at the following website:

     
  • 15. 
    In particular, the data on sectoral balances in particular forecasts for net lending/borrowing vis-à-vis the rest of the world for 2006-2009 and employment and labour productivity in hours worked are not
     
  • 16. 
    Communication from the Commission to the Spring European Council,
     
  • 17. 
    OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p.

    1). All the documents referred to in this text can be found at the following website:

     
  • 18. 
    OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p.

    1). All the documents referred to in this text can be found at the following website:

     
  • 19. 
    Communication from the Commission to the Council and the European Parliament,
     
  • 20. 
    OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p.

    1). The documents referred to in this text can be found at the following website:

     
  • 21. 
    Communication from the Commission to the Spring European Council,
     
  • 22. 
    In particular, the data on sectoral balances in particular forecasts for net lending/borrowing vis-à-vis the rest of the world for 2006-2009 and employment and labour productivity in hours worked are not
     
  • 23. 
    Deze databank van de Europese Unie biedt de mogelijkheid de actuele werkzaamheden (workflow) van de Europese instellingen (Europees Parlement, Raad, ESC, Comité van de Regio's, Europese Centrale Bank, Hof van Justitie enz.) te volgen. EURlex volgt alle voorstellen (zoals wetgevende en begrotingsdossiers) en mededelingen van de Commissie, vanaf het moment dat ze aan de Raad of het Europees Parlement worden voorgelegd.
     
  • 24. 
    EUR-lex provides an overview of the proposal, amendments, citations and legality.