5. Conclusion
The Maltese Government acknowledges the importance of the Lisbon Strategy. Indeed, Government
considers sound fiscal policies and strong macro-economic policy coordination as a pre-condition for
achieving other reform priorities. To this end, Government took the necessary action to correct the
excessive deficit and in fact, the target of a deficit-to-GDP ratio below 3 per cent was reached in 2006,
with the excessive deficit procedure being abrogated in June 2007. Furthermore, Malta is taking steps to
achieve its Medium Term Objective in 2010.
Government is not solely addressing the current imbalance in public finances, but importance is also
being attached to the need to redirect public expenditure towards growth enhancing categories, in line
with the Lisbon Strategy. Indeed, growth enhancing policies mainly focus on industry and the labour
market, tourism, and education in an effort to increase Malta’s competitiveness, whilst improving the
environment so as to ensure that sustainable development is also being given priority.