Labour MEP Marlene Mizzi filed a libel case against Nationalist Party MEP David Casa on Tuesday, after the latter implied that she was pocketing EU funds.
In comments given to MaltaToday, Mr Casa said Ms Mizzi had admitted to leasing her offices from her own daughter, "payment-free, necessarily implying these funds are pocketed".
Labour MEPs were "not accounting for one cent of their European Parliament budgets," he had insisted.
The Nationalist MEP was responding to allegations that European Parliament salaries of his former aide were inflated to claim a bigger budget.
Ms Mizzi hit back at the allegation, calling Mr Casa a “sleazy, dishonest liar”.
“You are sinking in serious scandal and you are trying to bring others down with you. You picked the wrong person to throw dirt at,” Ms Mizzi had said.