Commission’s 2018 Country-Specific Recommendations addressed to Malta

In particular, improvements are needed in the management of waste alongside investment in recycling facilities for construction and demolition waste and the implementation of controls to prevent illegal landfill or dumping at sea of construction and demolition waste.

The justice system continues to face challenges with regards to its efficiency and a strengthened legal and institutional framework to fight corruption is necessary to ensure a high quality business environment. Governance shortcomings in the anticorruption framework may adversely affect the business climate and weigh negatively on investment. The effectiveness of Malta’s efforts to fight corruption needs to be further improved, especially with regards to the investigation and prosecution of corruption. Improving the governance framework is crucial to preserving Malta’s reputation and attractiveness as an international investment destination

In the context of the 2018 European Semester, the Commission has carried out a comprehensive analysis of Malta’s economic policy and published it in the 2018 country report. It has also assessed the 2018 Stability Programme and the 2018 National Reform Programme and the follow-up given to the recommendations addressed to Malta in previous years. It has taken into account not only their relevance for sustainable fiscal and socioeconomic policy in Malta, but also their compliance with Union rules and guidance, given the need to strengthen the Union’s overall economic governance by providing Union-level input into future national decisions.

In the light of this assessment, the Council has examined the 2018 Stability Programme and is of the opinion that Malta is expected to comply with the Stability and Growth Pact.

HEREBY RECOMMENDS

that Malta take action in 2018 and 2019 to: 1. Strengthen the overall governance framework by enhancing the national supervision of internationally oriented financial businesses licensed in Malta, by ensuring the effective enforcement of the Anti-Money Laundering framework and by continuing to step up the fight against corruption. 2. Ensure the sustainability of the health care and the pension systems, including by increasing the statutory retirement age and by restricting early retirement.