Malta is supporting the trade union movement in its campaign for a European pay rise, Joseph Muscat said.

The Prime Minister's comment at the ETUC executive committee meeting held in Malta was greeted by applause.

He said the government had signalled its intention to increase the minimum wage in Malta and talks between the social partners were progressing well.

"We have already helped those on the minimum wage through government support," he said, adding the next step was to see a higher minimum wage.

Welcomed by ETUC general secretary Luca Visentini as "a friend of trade unions", the Prime Minister said fiscal responsibility and social progress were not mutually exclusive.

He said Malta's experience over the past four years was testimony to this.

Dr Muscat urged unions not to see employers as the enemy: "we need to work closer together more than ever."

The Prime Minister received applause when he said social rights were a main pillar of the EU and Malta's presidency was working to include such a declaration in the conclusions of the Rome summit later this month.

"Europe without social rights is a Europe without purpose; without a soul," he said.