Malta's National Debt Nears €12 Billion While Deficit Shrinks

2026-06-03T10:58:16.127+00:00 · Updated 2026-06-03T14:03:31.256+00:00

Malta's national debt has risen to almost €12 billion, according to figures released by the National Statistics Office (NSO). These figures, which were made public after the general election, show a notable increase in government borrowing.

However, other NSO data indicates a positive trend in the government's short-term finances. The Consolidated Fund deficit for the first four months of 2026 significantly decreased to €65.5 million. This marks a substantial reduction from the €261.4 million deficit recorded during the same period last year.

This improvement in the deficit has led to expectations that Malta will be the only country to exit the European Union's Excessive Deficit Procedure this year. The European Commission is anticipated to recommend the closure of these proceedings against Malta on Wednesday, recognising the country's success in managing its finances.

Malta has reportedly met its fiscal targets agreed upon with the European Commission, achieving these benchmarks ahead of the scheduled timeframe. This development signals positive progress in the country's financial management.

Following this, Prime Minister Robert Abela has publicly committed to fostering a stronger economy and enhancing the quality of life for all citizens. His statements underscore the government's priorities in the wake of the recent general election.

The Prime Minister's pledges come as the government begins its new term, with a focus on delivering on its electoral promises related to economic stability and social well-being.

Malta has officially become the first European Union country to emerge from the Excessive Deficit Procedure. This confirmation follows earlier reports that the European Commission was expected to recommend Malta's exit this week.

State broadcaster TVM News reported this development, highlighting Malta's pioneering status among EU member states in exiting the procedure. The move indicates a positive assessment of Malta's public finances and its adherence to EU fiscal rules.