Muscat warns against tax harmonisation, 'Opposition will never agree to it'

Labour leader Joseph Muscat reiterated his disagreement to tax harmonisation, saying decisions on the eurozone crisis should be based on national interest and safeguarding the Euro.

"This is a crucial and delicate time for Europe, the eurozone and our country ... a time that calls for prudence and responsibility," Muscat said this evening, when speaking during a political activity organised by MEP Edward Scicluna.

He called on Prime Minister Lawrence Gonzi to work hand in hand with the Opposition, to together find a solution which would be of benefit not only to today's problems, but also safeguarding future generations.

"We cannot think as government and opposition, but as one country. Decisions to be taken this week on a European level will impact our country for a whole generation," Muscat warned.

He said the decisions should be based on safeguarding two interests: national interest and the Euro as a currency. "This does not mean flying our flag, but find ways to protect jobs, the growth, the industry and financial services," he said, adding that Malta should not simply protect its interest by defending itself from what's going on outside the country.

"I believe Malta can hold consensual positions on what changes are acceptable for us, what changes could be of benefit and what changes safeguard common sense. We can reach this by pulling one rope. This is not the time for populism and mass meetings. Governments come and go, but the country remains. We should send the message that we have the will to face the challenges that lie ahead."

Muscat said one could elaborate for why the eurozone is in its present situation for various reasons: "But the root of all problems is lack of prudence by other countries, who went on to accumulate unsustainable debt. It is our responsibility to face those debts: it's a bill that must be paid."

The Opposition leader said future generations should not be left with today's debt: "They should be faced with jobs and economic growth, with a future where they can work, gain money and move forward."

He reiterated that the key to everything is economic growth. Without it, no plan can exist for sustainable reduction of debt, Muscat said, adding that coherent and not contradictory decisions should be taken.

"We cannot see countries with problems of economic growth and then base our own budget on foreign direct investment."

Muscat said Malta should never cross the "red line of tax harmonisation".

"Tax should be decided by the individual member state. No one should order us what to do. It is the bases of sovereignty and democracy ... a basic principle which we must never give up. We will not agree to it."

Muscat also said the international community must receive the message that a change in Malta's leadership would mean a transition to a stronger leadership which safeguards national interest, and understands European fiscal policies.

Muscat also expressed his disapproval of France and Germany's proposal for a new European Treaty. "Europe's strength comes from its ability to take decisions on a community level. However, this is no slowly being lost, with two leaders of two countries deciding they can choose for themselves and force other countries to follow suit. We want Europe to be a success, and this could be reached with joint decision making and not by imposition," he said.

Muscat said Europe shouldn't be divided in two - a first and second class Europe. "It should be all 27 countries who decide whether a change in the Treaty is needed, not just 17 member states. The eurozone crisis also affects those who are not members of the eurozone," he said.

Muscat added that it is in such moments that people should turn to those who are competent: "With what we have managed to build in the past three years and a half, shows the Labour Party is competent and credible. It shows that we look at issues through the economic lens."

He said the PL supports businesses, which in itself proves that Labour is the workers' party. He said a workers' party supports businesses and there exists no contradiction between the two.

"We are an open party. And that is why I am pleased to see Edward Scicluna joining our team. It proves we will have a credible leadership, a leadership which brings stability."

Muscat went on thank Scicluna for accepting his offer and announce his candidature for the coming general elections.