Prime Minister Joseph Muscat said this morning that Opposition Leader Simon Busuttil needs to make clear the insinuations made yesterday and speak clearly, after which he will take legal action.

"He should make these insinuations clear and then I will file a libel against him myself,” Dr Muscat said.

He was responding to questions regarding the Opposition statements that he is now an accomplice with Mr Schembri and Dr Mizzi and that he is being blackmailed by them.

Asked about his decision to keep Konrad Mizzi as a minister, and that according to the opposition this decision was a farce, he said: “Dr Busuttil is a farce who, when there are clear accusations against Deputy Leader Mario de Marco that works were carried out for free, Dr Busuttil is still not taking steps”.

Turning to Dr Manuel Mallia, who has been named Competitiveness Minister, the Prime Minister said that Dr Mallia has been out of Cabinet for over a year, and has been held politically responsible for the period necessary. ”I felt he had to come back to Cabinet”.

Dr Mallia had been dismissed after he refused to resign following the shooting incident involving his driver in November 2014.

Asked why he didn’t remove Konrad Mizzi and Keith Schembri, the Prime Minister said he does not take decisions based on popularity. I take decisions according to need, when I see the facts, after I see public sentiment and at the end of the day I see what is in the best interest of the country. I did what no other Prime Minister has done. Yet again I’ve taken a decision and removed the portfolio from an important minister and kept that responsibility myself. But I must also ensure that a minister, who according to my understanding is capable of delivering and has already delivered, continues providing his services so that as, apart of his redemption, would be the fact that he completes the power station to move from oil to gas. I expect nobody to cheer me on today, I await however, that the results will show everyone that my decision was the best one.

Asked whether he believes it is double standards that in 2012, the PL put forward a motion to get rid of ambassador Richard Cacchia Caruana, yet yesterday the Prime Minister said he would not remove OPM chief of staff Keith Schembri as he was not publicly elected, the Prime Minister said: “no, he (Mr Cachia Caruana) had a public office, he was ambassador and as an ambassador he was a holder of a public office”.

Following up on this answer, the Prime Minister was asked whether, given that Keith Schembri is a person of trust he was tying his personal reputation to Mr Schembri, the Prime Minister said: “no, that’s the point that he enjoys my trust. He has always done his work very well and I think I should keep on trusting him”.

On Jose Herrera's appointment to environment minister, he said: "I believe he can continue to build upon the work of Leo Brincat and his main task will be to reach out to NGOs, not to necessarily agree on every point, but to improve the level of communication".

Dr Muscat was speaking to journalists after delivering his address at The Mediterranean Leadership Summit organised by The Economist.