Malta registers highest surplus in the EU

Just a few hours ahead of this year's budget, figures show Malta as having registered the highest surplus in the EU.

The figures released by the National Statistics Office and Eurostat show an increase of  €296.3 million over the previous year's surplus.

The results come on the day that Finance Minister Edward Scicluna is expected to deliver his seventh consecutive budget later on this evening.

In 2017, the total government revenue stood at €4.4 million, an increase of €554.3 million from the previous year, and the total expenditure amounted to €4 million, an increase of €257.9 million from the previous year. 

Eurostat infographic with Malta's fiscal data from 2017

The gross consolidated debt was shorn by €64.3 million from last year and now stands at €5.7 billion, amounting to 50.9% of the GDP. This is in line with the Maastricht Treaty which stipulates that members are obliged to keep "sound fiscal policies, with debt limited to 60% of GDP and annual deficits no greater than 3% of GDP."

With regards to the latter, Malta has strayed even further than it did last year from signs of alarm, registering the highest surplus in the EU. 

Malta's surplus is 1.7% greater than the country in second place—Cyprus, also an island nation—which has registered a surplus of 1.8%. This is followed by Sweden, Czechia, Luxembourg, the Netherlands, Bulgaria and Denmark, Germany, Croatia, Greece, Lithuania and Slovenia.

All the other unmentioned member states registered deficits in 2017. Spain and Portugal were both in breach of the Maastricht Treaty with deficits at 3.1% and 3.0% of the GDP respectively.

Greece, Italy, Portugal, Belgium, France and Spain all had government debt ratios higher than 60% of their GDP with Greece, though registering a surplus last year, having the highest amount of gross consolidated debt.

The average expenditure of countries in the euro area was approximately 1% higher than the average revenue.

Joseph Muscat took to Twitter to convey that data from 2018's spending showed a similar trend to that for 2017. "In #maltabudget2019 we will continue rolling out our economic and social strategy," he said.

#Malta had the highest fiscal surplus in the #EU in 2017, as confirmed by @EU_Eurostat. Data for first half of 2018 indicates similar trend. In #maltabudget19 we will continue rolling out our economic and social strategy -JM @edward_scicluna

— Joseph Muscat (@JosephMuscat_JM) October 22, 2018

Prime Minister Joseph Muscat has said Budget 2019 will deliver increases in pensions and the minimum wage, and include no tax hikes. Muscat argued that it was thanks to increased investment and a rising workforce that a surplus was once again possible.