The government said it is considering submissions made by stakeholders on a deal reached on the transfer of land in Pembroke to be converted into a six-star complex by Corinthia.

In a statement today, the government said it is trying to understand what these concerns are. Currently, very positive discussions are underway with Corinthia to address reasonable concerns, the government said.

The government statement was issued to deny allegations published in today’s edition of the Times of Malta, under the heading ‘Corinthia deal talks reopen after warning’.

The Times of Malta alleged that the government has reopened talks with the Corinthia Group to modify the terms of negotiated agreements on projects on the St George’s Bay peninsula after receiving legal advice that EU state aid rules could be breached.

“This is an outright fabrication and the government has no reason to change its opinion that the transaction fully complies with the precepts of state aid,” the government said.