Government, opposition reaffirm Malta’s robust banking sector

Prime Minister Joseph Muscat and Opposition leader Lawrence Gonzi both stressed that Malta's banking sector was robust and stable, with no risk of contagion from the Cypriot crisis across the Mediterranean sea.

In a reply to queries raised by the Opposition following Muscat's briefing on the EU March summit, Muscat revealed his intentions to tap into more EU funds, over and above the €60 million commitment secured by former PM Lawrence Gonzi for the gas pipeline.

Whilst reminding that the €1.1 billion secured by Gonzi in the multiannual financial framework 2014 - 2020 hadn't yet been approved, he insisted there were no risks that Malta should lose any of its funds.

"The only risk that may exist is that instead of the multiannual financial framework providing for six years, it would be worked out on a yearly basis," the Prime Minister said.

With regard to the national reform programme, Muscat said government will depart from what was left by the previous administration but will widen the consultation with MCESD and MEUSAC.

"In June, the European Commission will adopt country specific recommendations. Where we feel that a recommendations impinges on our sovereignty or is not in agreement with our policies, we will oppose it," Muscat said.

He added, that just like the PN government last year opposed the EC's recommendation for an increase in retirement age, the Labour government would do the same.

"We are also in disagreement with the proposals that recommendations made should be contractually binding. Issues of national sovereignty, including economic policies, should only be decided by the Member States," Muscat said.

The EU is currently also working on the completion of the Internal Energy Market and on interconnections with European energy markets. The EU is adamant that no EU Member State should remain isolated from the European gas and electricity networks after 2015.

The Prime Minister said the government agreed with the direction which the EU energy policy was taking. He however warned that the committed €60 million had not yet been secured and "tensions" existed among EU institutions on the funds being forked out by the Euroepan Union.

"We don't have the full certainty yet and clear indications will come at the end of May after the Energy Summit," Muscat said, adding that the government was hoping to obtaining more funds for the development of the gas pipeline.