Update 5.42pm - PN willing to work with government, says Busuttil
Prime Minister Joseph Muscat said this morning that while Malta was not keen to see its EU presidency extended by six months to a full year, the country was ready to assist the EU should such a request be formally made.
The possibility of Malta's EU presidency term being extended to a full year developed after Britain last week voted to leave the EU. Britain was due to hold the EU presidency in the second half of next year, taking over from Malta.
Dr Muscat, who gave a statement in Parliament in the wake of the Brexit vote, said that informal soundings about extending the presidency had already reached Malta.
Opposition leader Simon Busuttil, who spoke later, said the presidency was a prestigious position but it was up to the prime minister to consider whether it suited Malta to have its term extended.
In his statement, Dr Muscat said a Brexit information helpline would be effective as from tomorrow for any information the people may require.
The Brexit result was described by Dr Muscat as a shock but said it must be respected as it stemmed from an exercise in democracy.
He described as "arrogant and elitist" any conclusions that it was the old and the uneducated who voted the UK out of Europe
He described as "arrogant and elitist" any conclusions that it was the old and the uneducated who voted the UK out of Europe. He said immigration was a real issue and the EU needed to come to terms with the need to give its members more elbow room to decide matters in member states rather than Brussels.
Dr Muscat spoke about the possible impact of Brexit but cautioned nothing would change overnight. Malta, he said, could be a bridge between the UK and the EU in sectors such as gaming, financial services and asset management.
Dr Busuttil said that the Opposition associated itself with the sentiments expressed in the Prime Minister's statement and agreed with warning against populist arguments. He advocated caution against hasty steps.
He said the Opposition was extending the hand of co-operation to government to this effect. He agreed with the Prime Minister that it would be suicide to get out of Europe, noting that this sentiment was a departure from what Dr Muscat used to think. He called for the publication of the Brexit impact studies given to Cabinet so that the public would be in a position to know how Malta, as well as themselves, would be affected.
Replying to various opposition questions, Dr Muscat said Malta is in a tough position because Britain is a strategic ally which counterbalances the continental drive towards federalism. But Malta was also an EU member.
It was in Malta's interest for the UK to have a fair deal, but the UK could not enjoy all the benefits of membership without being a member. That would only push other countries out of the EU.
Two procedures would be started in the coming months - the divorce procedure and the talks on a new deal. Some wanted one to come after the other. He felt the two negotiations should be run in parallel.
Clearly, the UK wanted access to the single market through membership of the European Economic Area or a similar arrangement. But one could not de-couple freedom of movement of goods from free movement of people and capital. He did not think this would be acceptable to a majority of EU member states.
Taking this option would see Britain's position deteriorate as it would lose decision making and veto rights in the EU.
Dr Muscat reiterated that decisions should not be taken in haste but he cautioned that undue delay would fuel uncertainty.
That the British prime minister had sought to wait until October before kick-starting the Brexit procedure may have been a well-thought out decision, unless one was overtaken by events.
Dr Muscat underscored the opportunities for Malta should companies seek to leave the UK in order to continue to be based in the EU single market. Malta would not act vulture-like, he said, but would actually work with the UK. Indeed, there were indications that some in the UK saw Malta as part of their solution in order to retain some of their own business.
In his remarks Dr Muscat also regretted a meeting about Brexit held yesterday by the foreign ministers of the EU's founding countries, saying this sort of thing created divisions within the EU and was exactly what the EU did not need.
'We extend full cooperation to government' - Busuttil
Opposition leader Simon Busuttil said the Nationalist Party was willing and able to help the government navigate the difficult times that would follow the UK's Brexit vote.
"We have experience when it comes to the EU, and we have credibility on the matter both in Brussels and among the Maltese people," he said.
Dr Busuttil expressed regret for the vote outcome, saying it was the result of populism and wishing he could "turn back time" to redouble his efforts to keep Britain in the EU.
Speaking in parliament, Dr Busuttil said the EU had failed its citizens on immigration issues and in the way it communicated.
He said that the Prime Minister's statement that a 0 per cent VAT rate on foods and medicines would remain unaltered was misleading, as it failed to note that the rate had been made permanent back in 2009 under a PN administration.
The Opposition leader urged a period of reflection and said the PN remained open to being part of a cross-party taskforce aimed at setting out Malta's EU presidency priorities - a suggestion first made by former EU commissioner Joe Borg.