It is in Malta's interest that the euro, which is our currency, survives for if it is undermined, the health, education and savings of the Maltese will also be undermined, Labour leader Joseph Muscat said this morning.

Speaking on the Radio Malta programme Ghandi x'Nghid, Dr Muscat said that no one should be happy with what is happening in Greece and other countries but to keep the euro floating, one should opt for a model which has more involvement of the European Central Bank.

Dr Muscat said that the opposition could have opposed support to Greece and other countries and this would have gained it popular support but it believed the euro zone should be saved and the opposition had to give a sign that this is in the country's interest.

However, it also warned the government that when it came to another rescue package debate in Parliament should precede any agreement with the EU.

The guarantees Malta was giving, he said, will affect whole generations.

Dr Muscat pointed out that no plan for deficit reduction can be sustainable without economic growth.

But Malta was reducing the deficit by borrowing more.

This was leading the country to pay half a million euro in interest every day. This situation was unsustainable.

Dr Muscat said that when Moody's pointed out to the government that it should do something about the situation, the government insisted it would continue to do the same.