Prime Minister Lawrence Gonzi has had a meeting in Berlin with Chancellor Angela Merkel.

The talks focused on the EU Budget, whose process has been stalled for several weeks.

The Chancellor said  Malta had amply proved in its 'excellent economic data' that one could still achieve positive results in a difficult environment. She said Malta had developed excellently, but its particular circumstances must still be catered for in the EU Budget.

Although it could no longer be a 'traditional' recipient of cohesion funds, it would be wrong not to give chance for a transition.

She said it was in the interest of both countries to have clarity as soon as possible on the EU Budget.

She also praised Malta for attracting German tourists and investment, mentioning Playmobil and Lufthansa for choosing Malta.

Dr Gonzi praised Ms Merkel for her leadership in the eurozone crisis.

The two leaders also discussed bilateral relations and the situation in Libya.

Dr Gonzi is due to meet the German Foreign Minister later this afternoon before returning to Malta.

NO SPECIAL TERMS FOR CYPRUS

During her press conference with Dr Gonzi, Ms Merkel  said there could be no special bailout conditions for Cyprus that did not include the need for economic reforms such as privatisations, which have been ruled out by the island's outgoing  president.

"We agree it is important that the troika should talk with Cyprus and that there can be no special conditions for Cyprus because we have common rules in Europe," Merkel told a news conference. "We are far from the end of the talks."

Dr Gonzi said "privatisations were one of the key elements that allowed Malta to move forward" and make its economy more competitive.