Prime Minister Joseph Muscat told Parliament yesterday that Malta believed Greece should remain in the eurozone, but with solidarity came responsibility.
In a statement to the House, Dr Muscat said the recent EU summit was obviously overshadowed by the Greek crisis and he gave a brief overview of the events as they unfolded over the last week. They had culminated in the dramatic decision by Greek Prime Minister Alexis Tsipras to walk out and announce a referendum asking the electorate to decide on the austerity measures imposed by the EU.
Dr Muscat felt the referendum, while legitimate, should have been held earlier. He described it as “irresponsible” and “a move which has undermined confidence in the EU”.
If the Greeks accepted the austerity measures, then Greece would continue to negotiate and the Tsipras government’s position would not be tenable.
If the Greeks rejected them, it would mean they wanted to leave the eurozone.
Dr Muscat said that some were encouraging voters to abstain so there would not be the necessary 50 per cent threshold. This would lead to an inconclusive result and more uncertainty.
In Malta, the Malta Financial Services Authority and the Central Bank had assured the government that local banks were not exposed. Meanwhile, steps were being taken to minimize the damage to the eurozone.
As he was making his statement, Dr Muscat was informed that technical talks had resumed as Greece had asked for a bailout extension and had decided to go back to the negotiating table.
The Malta Financial Services Authority and the Central Bank had assured the government that local banks were not exposed
The Greek government was saying that if there was agreement on “prior actions” before being given an extension, it was ready to change its advice to the people on the referendum or it would suspend it, Dr Muscat said.
This could be a breakthrough or a “game” to gain time. It could also be a case of political posturing. This was a very delicate period and he promised to keep the House informed accordingly.
The Prime Minister said Greece’s behaviour in the last few days had not helped matters at all. Malta believed that Greece should remain in the eurozone but with solidarity came responsibility.
Dr Busuttil said that the Opposition was totally behind the government in its stance on the Greek crisis and all the decisions taken by the finance ministers and the European Commission over the last few days. The government and the Opposition were united.
He said these were important days for the EU, the IMF, and those who worked well with the euro, as it had brought them wealth and stability, as it did to Malta. If the Greeks had used this tool well, they would have had similar results.
The EU was not an à la carte menu, it involved several sacrifices, and perhaps the EU had been mistaken in allowing Greece to enter the eurozone before checking whether it was ready.
A the end of the sitting at 9pm, the Prime Minister informed the House about the latest development: the EU finance ministers’ teleconference on Greece had ended but, since no progress had been achieved and the situation had not changed from last Saturday, they had decided not to accept the Greek government’s request for a two-year extension.
As things stood Greece would be in default with the IMF.
Today, the the Greek government is to present yet another list of actions to be discussed by the finance ministers.
Athens had also formally asked the IMF to unilaterally suspend its 12 midnight deadline, Dr Muscat said.