The Malta Independent 8 June 2025, Sunday
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‘I was not surprised’, PM Joseph Muscat says in reaction to EU Parliament debate on Malta

Kevin Schembri Orland in Strasbourg Wednesday, 14 June 2017, 18:56 Last update: about 9 years ago

Prime Minister Joseph Muscat was not surprised by what was said during the MEP debate about the Panama Papers, Malta and the rule of law.

Muscat had just emerged from the European Parliament plenary chamber after having defended himself from a barrage of statements made by MEPs from many different parties on the Panama Papers, the rule of law in Malta and Malta's tax system.

He said he was not surprised by the tone the MEPs used. "I defended against what was said I don't think I was aggressive or condescending or rude towards MEPs. Regarding the PN MEPs it confirmed they learnt nothing. It's a broken record and we heard nothing new."

Asked what concrete action he will take following the reactions from MEPs on the situation in Malta, the Prime Minster chose to say that action has already been taken. "I think that the attendance for the debate must also be taken into consideration. I think this shows that this was a debate spurred by local politics. I think you notice this as well as Portuguese members they attacked their own countries as well. I was not surprised, it was a normal debate that occurs in situations that are politically instigated. I am pleased that the majority of groups decided that this debate would not occur before the election campaign. I was surprised by the level of misinformation that there was. For criticism against me, it's part of the system, but I have a problem with completely incorrect statement."

Asked whether he was concerned with criticism regarding Minister Konrad Mizzi and Keith Schembri being kept on, he said that most of that criticism was locally fed. It was part of the repetition. The people decided on Konrad Mizzi, Keith Schembri said that if something is found for criminal proceedings to occur he will resign.

Muscat was also asked whether he could agree that at the very least the structures of Mizzi and Schembri were intended for tax avoidance or tax evasion, he said that there is a contradiction in terms. "If they attack our system saying it causes tax avoidance, then why should a Maltese person go abroad to do that, isn't that a contradiction?"

Asked whether there is doubt regarding these structures, and these men were kept in government, "why should people pay tax comfortably when doubting this is being fairly dealt with?"

In response, Muscat said: "That is a rational point. In the case of Mizzi and Schembri there was a tax investigation, and investigations in this regard are ongoing. I don't believe they concluded."

Turning to the Greens request to the European Commission to look into possibly opening infringement procedures against Malta, he said he does not have any problem with scrutiny. We are transposing directives correctly. I respect the Greens as for them it's a matter of principle. They disagree with a system whwere each state decides on its tax levels. At least it's a principled approach. One might disagree witht heir points but at least one knows where they stand at EU level. We are conforming and OECD compliant. They asked the Commission to further scrutinise and I think that will reinforce our hands.

Asked about Finance Minister Edward Scicluna's statements on the FIAU recently, Muscat said: "he asked a question," and evaded a proper answer.

 


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