Labour MEP Edward Scicluna has denied having suggested that, in order to reduce the debt, the government should raise taxes.

"I strongly refute this claim by the Prime Minister, which is completely baseless and is meant as just a ploy to deflect attention," Prof Scicluna said.

"The only occasion that an interviewer tried to put words in my mouth to that effect was, surprise surprise, the Bondi+ programme which discussed the extension of the maternity leave.  When I remarked that unlike other European countries Malta sees the full cost of maternity leave being borne by the employers of female workers I also said that in other countries the cost is less burdensome and less discriminatory because it is shared.  At this point the interviewer, visibly and audibly prompted by the Minister of Finance Tonio Fenech, asked me whether I am suggesting that the cost be added to the National Insurance (NI).

"I replied that this is not what I am suggesting.  With continued badgering on this point I continued repeating several times that this burden already exists on industry, so no new burdens are being suggested. Sharing an existing burden does not add any taxes or NI.  It is one way to make the existing burden lighter on the employers.  Being solely an employers’ matter it is obvious that this would have to be solved among themselves, and not imposed by the government."

Prof Scicluna said the government is getting hysterical because it is in a tight spot. 

"The situation we are now in, is the accumulation of many past economic mistakes.  It will be more worthwhile for the Prime Minister to heed E.U. Commissioner Ohlin Rhen’s Warning Letter where the Government, by December, has to show that its fiscal measures are “sufficient”, “permanent”, and “convincing”.  By deflecting attention from its chores by inventing silly claims like the one above, will not make its political and economic problems go away," the MEP said.