The European parliament elections in June would not shift the government's focus from the country's financial problems, Prime Minister Lawrence Gonzi said, denying that there was a downbeat feeling within the civil society that problems would be shelved for yet another month in order for the election fever to subside.

Speaking at a televised press conference with the Nationalist Party's candidates for the European parliament on Saturday, the Prime Minister said the government would not cease working to reach its targets to slash the deficit, according to a three-year deadline it has set for itself.

A European Commission report last Wednesday warned Malta, Poland, the Czech Republic, Hungary, Cyprus and Slovakia about the state of their finances.

Dr Gonzi reiterated that the EU report, based on figures recorded at the end of 2003, included the Lm57 million soaked up from the shipyards last year.

The deficit is now 9.7 per cent of GDP as this included the shipyards injection, a one-off operation that increased the GDP by an additional 3.2 per cent. What is important is that we will continue working to reach projected results, even by this year's budget, Dr Gonzi said.

He launched the electoral manifesto and the "action plan" the PN is sharing with the European People's Party.

In two separate interventions, candidates Roberta Tedesco Triccas and Ian Spiteri Bailey spoke about the PN's place in the "family" of European parties of Christian Democratic values and on how the EPP would safeguard the interests of workers respectively.

Dr Gonzi said the PN candidates would work on naming five priority areas once elected.

First, the EPP and the PN believe in solidarity. The implications of this were that large countries with strong economies were committed to help countries that have not reached the average targets set by the Union achieve those aims.

"The EPP want no one in the EU to be left behind," Dr Gonzi said, pointing out that this had been a long-standing Nationalist slogan.

A second point regarded education and training. Dr Gonzi said that in the case of Malta, this priority area related to the capacity of the country to use its knowledge and to make best use of its human resources in a European framework.

Third, the EPP was lobbying for the common good of Europe and for a secure Europe where people can benefit from economic prosperity.

Another priority on the list of the EPP was the environment.

Fifth, the PN and EPP were lobbying for a Europe where citizens could live in tranquillity and in a safe environment.

Dr Gonzi said that thanks to the visit of Irish Prime Minister Bertie Ahern to Malta last week, the Maltese could already bear witness to what consultation really meant.

He said he was disappointed that the government did not receive any support from neither the Labour Party nor from Alternattiva Demokratika when telling Mr Ahern that Malta still wanted a sixth seat in the European parliament.

Dr Gonzi said Malta was still pushing for a reference to Christianity in the European constitution.

He said the government agreed on the polluter pays principle but an issue on eco taxes before the European parliament was related to a tax on tourism that the European Greens were lobbying for. "Arnold Cassola, who is the AD candidate for the European elections, is the general secretary of the European Greens, the group which is lobbying for a tax on tourism. Such a tax would have a devastating effect on our economy," Dr Gonzi said.

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