British Deputy Prime Minister Nick Clegg has sought to clarify his recent reference to Malta, saying the offence caused by his remark was a "misunderstanding between friends".

In a letter to Prime Minister Lawrence Gonzi, Mr Clegg said he was sorry if his comments had inadvertently caused offence.

"I have the utmost admiration and respect for Malta. I would never wish to affect the historically good relations between Malta and the UK," Mr Clegg said.

The Deputy Prime Minister made the remark on May 19, shortly after assuming office, saying Britain used to be "the cradle of modern democracy but was now, on some measures, the most centralised country in Europe, bar Malta".

The comment ruffled feathers in Malta, which has long considered the UK as a major economic and political ally.

Mr Clegg said he was referring to the 'Structures in the Taxation Systems of the European Union' report published by the European Commission and the point he was trying to make was that while a level of centralisation may be appropriate for a smaller country like Malta, he did not believe it was the right way forward for the UK.

"Certainly, my comment was not intended to criticise Malta's structures of governance," he told the Prime Minister.

Mr Clegg also regretted the way his comment had been interpreted that he was in any way "maligning" Malta's democracy.

"I hope we can both agree this was a misunderstanding between friends: the relationship between Malta and the UK is extremely strong, and the UK continues to value highly Malta's role," the Deputy Prime Minister said.

In his reply, Dr Gonzi said the relationship would not be negatively affected by the "minor misunderstandings" that cropped up between friends from time to time.

While drawing parallels between the two countries, even at EU level, Dr Gonzi urged Mr Clegg not to be put off making comparisons between the UK and Malta after last week's exchange.

"Such comparisons between EU member states are generally healthy and allow us all to learn from each other," Dr Gonzi said, before inviting Mr Clegg to visit Malta.