Muscat reiterates Opposition’s support to government

Reacting to the Prime Minister's speech in Parliament this morning, Opposition leader Joseph Muscat said his side of the House will continue to support government on the agreement reached in the European Council, as long as decisions on taxes are taken by the Maltese government.

Muscat has reiterated that all measures must be taken to safeguard the Euro, but this must not come at the detriment of the sovereignty member states currently have, the ability to set taxes themselves.

"The red line of fiscal harmonisations must never be skipped," Muscat said. "This line was not skipped with the agreement reached on Friday in the European Council."

He said government's aim must always be towards a balanced budget and debt reduction. He added, the Constitutional amendment to add the so-called "golden rule" of a balanced national budget should not be hastily implemented.

"We should wait until discussions on a European level are concluded," Muscat said.

He went on to say he could not understand how government chose to embark of the City Gate project and the building of a new Parliament, during a time that required financial discipline.

Muscat added government did not include the cost in its books.

The Opposition leader also said the common consolidated corporate tax base and the financial transaction tax should be resisted by Malta: "This because they are not in the interest of our competitiveness."

Muscat reiterated a new government assures stability in the change of the country's leadership.