Finance Minister Edward Scicluna said that Malta supports the establishment of a stabilisation function for the eurozone.
Speaking at the Eurogroup’s extraordinary meeting, Prof. Scicluna said that Malta welcomed the Franco-German initiative which provides an alternative proposal to that of the European Commission.
The stabilisation function is a European Commission proposal which, amongst others, seeks to establish a separate budget for the eurozone area to provide finance for countries suffering from a recession.
However, France and Germany have vowed to press ahead with plans for a common eurozone budget after a number of governments indicated they were prepared to work on a blueprint drawn up by the two countries.
Minister Scicluna also stated that Malta believes that the budget financing options attached to the proposal may conflict with small countries’ interests and open up a needless and protracted discussion.
Another Eurogroup meeting will be held in December during which important decisions will be taken, but Prof. Scicluna said he believed reaching agreement would be hard to achieve within the set timeframes.
“All in all, the discussion indicates that agreement on all the proposals amongst eurozone countries would be hard to achieve by December,” Prof. Scicluna said.