Malta is poised to become the first country this year to exit the European Union's excessive deficit procedure, a financial monitoring mechanism, as the European Commission is expected to recommend the closure of proceedings on Wednesday. This development follows Malta's success in reducing its deficit below the EU's 3% of GDP threshold, a significant turnaround from its placement under the procedure in 2022. Despite substantial public finance pressures due to COVID-19 pandemic support measures, energy subsidies, and the Stabbiltà scheme, Malta's deficit fell to 2.2% in April, significantly ahead of the initially projected 2027 target. The formal approval by EU finance ministers in July is anticipated as a formality, with forecasts indicating Malta's deficit will remain below the threshold in the coming years.