Labour MP Alfred Sant said the EU fiscal treaty on stability, coordination and governance, for which the government was asking Parliament’s approval to ratify, was part of a eurozone strategy adopted to overcome the economic crisis. This only served to highlight the existing structural problems, even if various steps had since been taken to resolve the crisis.

“I will vote for this resolution, albeit most reluctantly, as I believe we are setting out on a path which does not maximise economic potential,” he said.

Dr Sant said that, despite claims there would be further investment in the economy, this had continued to shrink over the past 13 years, more so since joining the eurozone.

It was ironic that such a plan for economic governance was being proposed by the PN when in the 1970s it maintained such plans should not be translated into legislation.

It was important to be aware what Malta was letting itself in for: “This is a one-size-fits-all model which nobody can really imagine will work in practice,” he said.

The treaty gave the European Commission far more power than local parliaments, dictating to governments what to do, even before they presented the national budget. Ratification would pave the way for the entrenchment of the Golden Rule in the Constitution, thus binding future governments not to exceed their annual deficit by 0.5 per cent.

Dr Sant said the treaty was a watershed which was increasing nationalism in its most negative and difficult aspects.