Malta stands against EU fiscal union

Prime Minister Lawrence Gonzi in a reply to Labour MPs George Vella and Alfred Sant in parliament, confirmed that Malta "categorically stands against the introduction of the Financial Transaction Tax".

However, Malta agreed about having single banking supervision because the absence of such supervision was one of the reasons for the current financial turmoil.

The latest proposal in this context was the introduction of a stamp duty. Malta already has a stamp duty and it was prepared to discuss this concept, but it remained against a financial transactions tax.

On the EU Budget he said Malta was continuing to insist on its eligibility for Objective 1 status – the maximum rate of assistance. If Malta exceeded the threshold of eligibility, Malta would still insist on eligibility through its status as a small island nation.

He held that the formal launch and inaugural board meeting of the European Stability Mechanism, in which Finance Minister Tonio Fenech is present, comes just 10 days before the EU's 27 leaders hold a Brussels summit, with expectations low that there will be any breakthrough on the big issues.

EU-IMF-ECB officials have been locked in discussions with Athens over the need for more austerity measures while Greece insists it has done as much as it can and now needs more time to meet the troika's targets, Dr Gonzi said.

Last May, the Labour Party's delegation in the European Parliament voted consistently against the Financial Transactions Tax during the plenary voting  session. The Labour Party maintains that such a tax will damage the financial sector in Malta and will affect the country's economy.