Malta with the third highest EU deficit in 2020
Malta recorded the third largest deficit in the European Union last year, Eurostat data revealed.
Malta’s deficit in 2020 was € 1.2 billion, or 9.7% of GDP. According to the National Statistics Office, Malta recorded a decrease of € 1.33 billion on the surplus recorded in the previous year.
The balance is calculated as the difference between total revenue (€ 4,729.9 million) and expenditure (€ 5,997.8 million). Comparing 2020 to 2019, total revenue decreased by € 384.4 million, while total expenditure increased by € 947.8 million.
In addition, Malta’s national debt increased by € 1.25 billion over 2019 and was € 6.97 billion. Along with a decline in GDP, the debt-to-GDP ratio for 2020 rose to 53.4% from 40.7% in 2019.
The NSO said that Malta’s fiscal outcomes for 2020 were largely affected by the Covid-19 pandemic and subsequent government measures to mitigate economic, social and economic risks. health associated with the pandemic.
Eurostat data show that the highest deficits in the EU were recorded in Spain (-11.0%), Greece (10.1%), Malta (-9.7%), Italy (-9.6%), -Romania (-9.4%), Belgium and France. (both -9.1%), Austria (-8.3%), Hungary (8.0%), Slovenia (-7.7%), Croatia (-7.4%), Lithuania (-7.2%) %) and Poland (-7.1%).
All Member States, except Denmark (-0.2%) and Sweden (2.8%), had deficits above 3% of GDP.
The so-called Stability and Growth Pact, a fiscal framework that dictates countries’ debt and deficit levels requires countries to target budget deficits of less than 3% and debt burdens below -60% of gross domestic product.
The rules have been relaxed to allow member states to keep their economies afloat during the Covid pandemic, however the EU is now divided on whether it should tighten its fiscal rules again.