Prime Minister Joseph Muscat will not speculate on how government would respond to a potential opinion by the European Commission with regard to money laundering issues, but said that if an opinion is released government will examine it and respond point by point.

The European Commission is said to be preparing to use little-known powers in EU law to issue binding demands on Malta’s financial regulator after an EU watchdog found “systematic” weaknesses in its enforcement of anti-money laundering rules, the Financial Times had reported. It will be the first time that Brussels orders a member state to strengthen enforcement of its anti-money laundering rules after a string of scandals across Europe’s banking system.

Vera Jourova, the EU’s justice commissioner, told the Financial Times that Brussels would publish a “formal opinion” on action that must be taken by Malta after its financial conduct regulator failed to address concerns raised by the EBA, a pan-EU banking watchdog, in July. “We will react because the EBA’s report has concrete proposals for improving the functions of [Malta’s] financial intelligence unit. The situation obliges us to come with an opinion,” said Ms Jourova.

Muscat was responding to questions posed by the press during the inauguration of Residenza San Ġużepp, a home for the elderly in Fgura.

The Prime Minister was asked by this newsroom whether he takes this to be a failure on government’s part to legislate and regulate and was also asked to state concretely what is being done to solve the situation.

Muscat said that Finance Minister Edward Scicluna gave a strong expose in terms of what government is doing in this regard, and said that even from what was reported, it was clear that in the meeting that occurred a lot of information from the Maltese government was given.

“I will not speculate and say what we would respond to the European Commission when we don’t have the EC’s opinion, if they release one.  If an opinion is released we will examine it and respond point by point. The context is now also changing. There are at least four countries where, if there are points regarding Malta on a particular case, there are much larger cases with other EU countries and to my understanding the European commission is taking this context, where it now has to look at what is happening in other countries.”

He was asked about Joe Gerada withdrawing his libel case against assassinated journalist Daphne Caruana Galizia over allegations that he and Economy Minister Chris Cardona had gone to a brothel while in Germany. The case issued by Cardona himself had also been dropped.

“This means that the phone location data will not be released and we will not know the truth. Do you think Cardona should have continued with the case to clear his name?” Muscat was asked.

Muscat said that there were two arguments at the time. "Firstly that it was not right that a libel case continues against a dead person. The second was the argument you made. The choices were made. To my understanding if the opposite happened the arguments would have been that it is not right for libel cases against a dead person to continue.”

The Prime Minister was also asked about the memorial to the assassinated journalist. He was asked whether he believes the situation hurts his European credentials. Muscat said that one must let the rule of law work. “There is a Constitutional case where one side argues the right to freedom of expression where one could place something on a national monument, and the other argument is that it is a national monument on a particular topic of national importance and it should not be taken by anyone.”

Asked if he agrees with that, he said that they will let the courts decide. “My personal position is that of the Prime Minister. I will let the rule of law take its course.”

Prior to the press conference, the Prime Minister spoke at the inauguration of the home for the elderly.

The home will host some 295 residents and offers varied care. It will also offer specialised care for persons with dementia. Nearly all rooms will have two beds. Residents will be able to make use of free services including a hair salon, excursions and other activities. The project was done through a €9 million investment and will create 150 new jobs.

Muscat, on his part, spoke of the sandwich generation, where, since people are giving birth at an older age, take care of their parents and children at the same time. He said that government has around 20 schemes currently in operation to help elderly persons who want to continue living in their own homes within the community. He also said that currently there are 2,187 beds owned by government in elderly homes, however said that more are needed.