Prime Minister Joseph Muscat said this morning that Malta was the surprise and the outsider that was delivering results in Europe.

Malta, he said, was a beacon of hope in the Mediterranean, an oasis in a troubled region. Malta could be to the Mediterranean was Dubai was for the Gulf and Singapore for Asia. Indeed it could be better, since it was a democracy.

Speaking from London in a video-link with an Ernst and Young conference, Dr Muscat observed that in the second quarter of 2014 Malta had the highest rate of growth in EU member states. This was no flash in the pan but followed consistent economic growth in the previous months.

Malta was now the EU country with the third lowest unemployment, after Germany and Austria. Employment growth had also outstripped, by far, the rest of Europe. Wage growth stood at 3.7%, twice that of the euro area, in the second half of the year, he said. Inflation had converged to the EU average after having been persistently higher.

The main cause, he said was the reduction in energy bills for households. This would undoubtedly improve competitiveness and, according to the Central Bank, contribute to more that 0.5 per cent improvement in competitiveness. The process would be followed by a reduction in bills for businesses next year.

Dr Muscat reiterated the government's commitment to continue to improve the business environment by raising efficiency, reducing bureaucracy and improving competitiveness.

Malta, he said, was a beacon of hope in the Mediterranean, an oasis in a troubled region. Malta could be to the Mediterranean what Dubai was for the gulf and Singapore for Asia. Indeed it could be better, since it was a democracy.

"Malta can be and should be on the short-list of any investor wanting to penetrate Europe and Africa from a stable and safe staging post," he said.