Malta has second biggest drop in national debt in the EU

Statistics published by Eurostat show that Malta’s national debt level has fallen below that of Germany and approached that of the Netherlands

Malta had the second greatest fall in national debt among EU countries between the second and third quarter of 2014. 

According to the government, reports by Eurostat confirm that towards the end of September 2014, national debt fell by 2.7% of gross domestic product (GDP).

According to the government, this reduction also means that compared to the previous year, national debt fell by around 0.5%. There were only nine other EU countries besides Malta where national debt dropped compared to the previous year.

Alternately, whereas national debts in the EU increased by an average of 1.3% of national wealth, in Malta there was a decrease.

The government said that this development increased the gap in national debt between Malta and the rest of EU countries. Malta’s national debt level has fallen below that of Germany and it has approached that of the Netherlands, two countries that are highly respected for their management of public finances.

“The results published by Eurostat negate the Opposition’s claims that national debt is ballooning under the current administration. Furthermore, when Simon Busuttil was vice leader of party in government, in the first quarter of 2013, national debts increased by 3.6% of GDP,” the government said.

According to the government this was the greatest increase in three months ever registered by Eurostat, since it started collecting statistics about Malta, fifteen years ago.

“Had our country continued in the increases it experienced during this period, Malta would currently be facing serious problems.”

The government said that the figures published by Eurostat show how important the change in administration was for our country.

“The change in administration has meant stronger public finances without having to resort to austerity measures,” it said.

“The government will continue to enact its policy of economic growth in the coming weeks. This policy will build on the optimism and dynamism of the people Malta and Gozo.”