Internal Market Commissioner Michel Barnier has failed to persuade Malta to change its position on the proposed Financial Transaction Tax (FTT), informed sources said.

M. Barnier visited Malta last week and had talks with Prime Minister Lawrence Gonzi.

However the sources said that he heard more forcefully opposition to the Commission's controversial proposal. Malta fears that the tax will undermine its position as an international financial centre, particularly if it is now applied in competing countries.

Foreign Affairs Minister Tonio Borg also told an EU Foreign Ministers' meeting this week that Malta remains against the tax.

"Let me make it clear for another time on the Commission's persistent demands to introduce the financial transaction tax. We continue to oppose this measure if this is not introduced on a global level."

During meetings held in Malta last week, Commissioner Barnier pleaded with Malta change tack, saying the tax would not really have a big impact. However, the government insisted on its position and underlined it during the first EU meeting after Mr Barnier's visit.

During the General Affairs Council meeting, Minister Borg also emphasised Malta's request to be given additional funds in the next budget.

According to EU rules, only member states with a GDP of less than 75 per cent of the EU average are eligible for the highest amount of EU money. However, Malta and other "new" member states are arguing that they have seen their GDP surpass this threshold only after the EU included as members Romania and Bulgaria – both poor countries which have unbalanced the EU-27's average GDP.