European Commission President Romano Prodi has reassured Malta that it would not be a net contributor to the EU following accession.

He also said he was sure that negotiations with Malta would be concluded this year, in due time for enlargement.

Mr Prodi was speaking at the headquarters of the European Commission in Brussels following intensive talks with Prime Minister Eddie Fenech Adami.

It was the first time Dr Fenech Adami held official talks with Mr Prodi in Brussels. Mr Prodi made an official visit to Malta two years ago.

The meeting took place in Mr Prodi`s office and lasted an hour. Mr Prodi was accompanied by top officials, including enlargement commissioner Gunther Verheugen and the EU`s chief negotiator for Malta, Arhi Palasuo.

Dr Fenech Adami was accompanied by Foreign Minister Joe Borg and the head of the negotiating team, Richard Cachia Caruana.

Addressing a joint press conference, Mr Prodi said he wanted to stress the point that upon accession Malta would be getting more funds then it would be forking out.

"The country would not be a net contributor after accession," he said, dismissing an argument which has been echoed by various eurosceptics in Malta for the past months.

Comparing Malta`s EU membership process to a journey, an amiable Mr Prodi said that "the journey was definitely going in the right direction".

He said he was aware that there were some delicate pending issues which were still being negotiated but that these could be overcome in the coming months. There is nothing which could not be resolved, he stressed.

To be frank, Mr Prodi said, there was no comparison between the nature of the difficulties related to Maltese agriculture to those which Poland has to face, to take one example. The same applied to the other pending issues, he remarked with a smile.

He stressed that Malta`s process was on the right track and that Malta was making remarkable progress.

When asked whether he was hopeful that Malta could conclude negotiations by the end of this year, Mr Prodi replied in a convincing manner, saying he was sure that the negotiations with Malta would be concluded this year: "I maintain that the process is moving ahead."

He stressed that the financial aspects relating to Malta`s membership would be fully addressed during the final stages of the negotiations.

It was important to stress this fact, he added, giving his assurance that the financial package would be deeply analysed in the coming months.

He said he was hopeful that the Maltese would make the right move by deciding in favour of EU membership. He was aware that, like anything related to politics in Malta, there was a very lively debate on the issue of the island`s accession. But he was hopeful that the "right decision" would be taken.

Speaking about the cost of non-membership, Mr Prodi said it was much better for Malta to participate in the decision-making process then to suffer the consequences of decisions taken by others.

One never knew what the future held, he said, and that was why it was important for Malta to belong to the largest economic and political force in the world.

One of the greatest advantages of membership was that the country would first of all benefit from a security point of view.

From an economic point of view, he was convinced that Malta, as a very small country, had the potential to exploit the benefits of operating in a huge market.

Dr Fenech Adami said that during his talks with Mr Prodi and Mr Verheugen, he was reassured that goodwill existed for Malta to conclude all remaining chapters this year.

The prime minister stressed that the government was committed to continue negotiating the remaining issues with the EU in an assertive manner and dismissed accusations by the opposition that the government was considering EU membership at all costs.

The government was making sure it was getting the right deal and was committed to continue doing so in the national interest.

"It is not membership at all costs. Far from it," a determined Dr Fenech Adami said.

Speaking to Maltese reporters prior to his meeting with Mr Prodi, Dr Fenech Adami said he would be raising important pending issues in Malta`s negotiating process, such as the transition period requested for the `yards sector and Malta`s demand to retain zero VAT rating on food and medical products.

Pointing out that the negotiations were not a race between candidate countries, Dr Fenech Adami said the crucial point was for Malta to conclude the talks by the end of the year and obtain the right package in the national interest.

Asked to comment on a report which appeared in The Times saying that Labour was considering boycotting the EU referendum, Dr Fenech Adami said he personally believed this would not take place.

However, if the boycott were to take place it would be a clear admission of the MLP`s conviction that the people would be voting in favour of membership. The MLP would be trying to rope in those who decide to abstain from voting. It would show that Alfred Sant was panicking, Dr Fenech Adami said.

Commenting on the outcome of the first round of the French presidential election, Dr Fenech Adami said that everyone was shocked with the success obtained by the far rightist candidate Jean Marie Le Pen in elections characterised by a low turn-out.

Dr Fenech Adami said the result revealed "the danger of people deciding to abstain from voting... nobody should risk abdicating from casting their vote."

During his brief visit in Brussels, Dr Fenech Adami was interviewed by various foreign press bodies including Reuters and the BBC.