The government is to consider including a side letter with the eventual document of ratification of the treaty setting up the European Stability Mechanism (ESM), setting out its interpretation of the proposed wording of the treaty.

The side letter was strongly suggested by the opposition at a meeting of the House Foreign and European Affairs Committee called to discuss the proposed amendment to the EU Treaty to install the mechanism.

Foreign Minister Tonio Borg said he was not so sure that such a side letter would not place Malta in a weaker position.

Most of the discussion centred on whether the ESM would swing into action if there was instability in the eurozone as a whole or even in one member state, large or small.

Finance Minister Tonio Fenech said the ESM would come into effect on July 9 – earlier than anticipated – and Malta would be involved for not more than €700 million, which would be the islands’ only paid-in capital and would not be a burden on national debt.

He described the ESM as a more permanent structure than the EFSF it was replacing.

Later, the whole House unanimously approved the second reading of the Participation and Granting of Financial Stability Support under the European Stability Mechanism Bill.

The contribution by Labour MP Alfred Sant and Minister Fenech’s winding-up will be reported later.

The House also unanimously approved in second reading the Civil Code (Amendment No. 2) Bill, after Justice Minister Chris Said wound up the debate.