EU must treat all countries equally - Tonio Fenech

As parliament continued discussing the Government Borrowing and Granting of Loans to the Hellenic Republic bill at committee stage, Nationalist backbencher Jesmond  Mugliett asked why did the European Commission only intervene in regards to the Greek economic crisis when the country's economy imploded.

"Why did the European Commission not intervene earlier regarding the Greek situation, when the commission imposes stringent rules on Malta and other small countries?" asked Mugliett. He noted that the EU should have acted earlier especially since the bloc has all necessary tools to assess the economic performance of all member states.    

The former transport minister added that Malta is now being "asked to do good" for the errors committed by consecutive Greek administrations.

Reacting to Mugliett's concerns, finance minister Tonio Fenech said that he shares Mugliett's feelings and said that he is "not here to defend the European Commission or Eurostat." Fenech added that he remembers very well the soaring levels of Greek debt and the excuses brought up by Greece such as the 2004 Athens Olympic Games.

Fenech said that Greece had "misguided" the EU by submitting false reports. "It is easy to evaluate small countries like Malta however we have always made it a point that all countries should be treated equally. No exceptions should be done with the bigger countries."  

He added that Malta took this stand in all EU summits because it is not acceptable to be tough with smaller countries and weak with the bigger countries. "The EU must be transparent and fair with all member countries."

Opposition backbencher and former prime minister Alfred Sant pointed out that the EU has already moved the goalposts for Spain as the economic targets have been lowered for the current year.

Sant also reiterated the criticism he levelled at the austerity measures being imposed on Greece last week and described the measures as "schizophrenic."

The bill was approved at committee level and will now proceed to be discussed at third reading level.

At the end of the debate on the Greek loan, the finance minister Tonio Fenech kicked-off the debate on the Budget Measures Implementation Bill. The bill includes clauses authorising the government to borrow up to €700 million.

The bill is a potential minefield for the government as it is a money bill which must be approved by 14 May. Its rejection would effectively nullify the budget measures and could spell the end for the government.

The vote on the budget is on a par with a vote of confidence and if the government fails to muster a majority, even if only through the Speaker's casting vote, the Prime Minister is con­stitutionally bound to call an early election.

Following the no-confidence vote in the government on 26 January which was only defeated with the Speaker's Casting vote after a tie of 34 votes in favour and 34 votes against, no other vote was taken in parliament.  

Nationalist backbencher Franco Debono who had abstained on the 26 January no-confidence vote had previously stated that he would not back the government on the budget bill, however since his abstention Debono has somewhat toned down his opposition to the Gonzi administration.