The European Commission categorically denied press reports quoting EU Justice Commissioner Jacques Barrot as saying the Maltese were racist with regard to immigrants.

Brussels called the international press reports totally "unfounded" and a "pure invention".

"A series of press reports refer to an alleged statement by Vice President Barrot criticising Malta as racist. Vice President Barrot has, at no moment, made such statement. The statement is a pure invention," the Commission said.

The reports, which appeared in many leading European dailies particularly Italian, French, German and Dutch, quoted Mr Barrot as supposedly saying that "Malta's attitude towards migrants is racist and this has to change".

The mistake originated from a report first filed by Italian news agency Ansa. When contacted, a spokesman for Ansa admitted the mistake and said the news agency carried the Commission's correction.

Meanwhile, Brussels said that the European Commission was recognising Malta's acute immigration problems and was making sure the island was given adequate financial resources to provide better reception facilities for migrants.

Giving a breakdown of the financial contributions made to Malta since its accession to the EU, the Commission said the EU's financial help was "increasing dramatically and has now reached cruise-speed".

According to the Commission, when "compared to the small amount allocated in 2004 (€111,840), the EC financial support reached a much higher amount in 2007 (€7.1 million) and in 2008 (€12 million)".

The Commission said that in the seven-year budgetary period ending 2013, a total of €126 million were earmarked for Malta under the general "solidarity programme". This amount excluded additional envelopes such as funds to be allocated for emergency measures, the Commission said.