Euro Monitoring the EMU Countries- Malta in perspective
The Euro Monitor published jointly by Allianz SE and the Lisbon Council is intended to be an annual macroeconomic scorecard which plots the performance of EMU countries in terms of macroeconomic growth. In the relative report published by the Brussels-based research institute, there is a strong recognition of how the debt crises in a number of EMU countries has exposed the vulnerability of the single currency area, and the need to curtail the spillover effects of the EMU countries in view of the close-knit financial markets, with the corollary imperativeness of valorizing the individual countries’ performance.
In this context, given the impact individual countries’ performance has on the entire single currency area, there is the need for enhanced, macroeconomic monitoring and early warning system. In this evaluative exercise, Malta together with Germany, were singled out as the only 2 countries from the EMU 16 which did not experience the overall measure of balanced growth in the country decline since 2005. The decline across the EMU has been largely catalyzed by the economic downturn in 2008/2009. Malta has seen improved rankings when compared to its 2005 scoreboard, now ranking 9th in the fiscal sustainability ranking based largely on the management of the country’s structural deficit and 5th in the jobs, productivity and resource efficiency ranking with unemployment levels in the country being reduced as well as a consistent employment ratio.
This exercise, while allowing individual countries to evaluate their performance over the years, also allows a comparative exercise to be projected across the EMU, allowing the aim of buttressing the credibility of the common currency and the objective for the attainment of sustainable and balanced growth across the EMU to be attained, based on the performance of the individual countries.