This article highlights the European growth pact agreed to by the European Council last week and the strong role Malta has played to date in this regard.
The European growth pact
Last week the European Council committed to further steps in pursuit of the fiscal compact determined late last year to help the currency union get back on its feet. Heads of State and Government have pledged a further €120bn to sustain infrastructural projects in Spain and Italy and also to promote employment and increase labour mobility throughout Europe. EU leaders also committed to the establishment of a supervisory body for eurozone banks by the end of 2012 to enable the formerly agreed European Stability Mechanism (ESM) come into force as well as tighter economic and monetary collaboration amongst eurozone member states.
Malta’s role
Both sides of the House of Parliament have readily agreed to implement the necessary constitutional amendments to implement further European integration. During proceedings for the approval of the European fiscal compact the Hon. Dr. Lawrence Gonzi, Prime Minister of Malta, confirmed that Malta’s financial credentials were strong. In fact it was one the few EU members to end 2012 with a deficit of less than 3% of its GDP. The Central Bank of Malta has so far contributed upwards of €150m to the IMF and the European Financial Stability Facility (EFSF) and European Financial Stabilisation Mechanism (EFSM).
