Messages in the Media - University of Toronto

EFSF in order to “decisively improve the debt sustainability
and refinancing profile of Greece.” Prime Minister
Gonzi said that the summit underscored the importance
of EU Member States’ ability to achieve the kind of “fiscal
consolidation” that “sends a positive message to the financial
markets [and] creates stability.” 9
- On 9 September 2011, the EC released its 2011 Public
Finances Report, which offered several recommendations
for Malta. It stated that Malta must adopt a “binding, rulebased”
framework to push its deficit to below 3% of its
GDP and reduce its growing debt. Also, the EC urged that
Malta “take action” to ensure the sustainability of its
pension system. 10 On 11 November 2011, the EC again
warned Malta of an economic downturn, citing the fact
that the country’s deficit and debt were projected to increase
next year despite projected GDP growth. 11
- On 8 November 2011, Malta, together with Bulgaria, Cyprus,
and the Czech Republic, backed Sweden and Britain’s
opposition to the so-called ‘Tobin Tax’ proposal
(placing excise tax on cross border currency transactions)
supported, most notably, by France and Germany. 12 The
states in opposition argued that the levy would negatively
impact both business and consumers. The ruling Nationalist
Party led by Prime Minister Gonzi was supported in
their position by the Opposition Labour Party; however,
the Green Party (Alternattiva Demokratika), expressed
“disappointment”, calling for banks and financial institutions
to “participate in responsibility sharing for the economic
crisis.” 13
- On 10 December 2011, Malta, along with 25 other members
of the EU reached a consensus on a new treaty (the
European fiscal treaty) to be signed in March 2012. The
treaty called for greater fiscal discipline and integration
amongst members by reducing bloated deficits, mutually
“approved” budgets, and progressing towards balanced
budget legislation. 14
114