The Opposition agreed with the government's cautious approach on the fiscal union the EU is pushing for, Labour leader Joseph Muscat said this morning.
Speaking in Mellieha, he said Labour could never agree with such a union if it meant that the country would not be able to decide about direct taxation in Malta.
"This is a concept we have to defend. Taxation issues in Malta should be decided by the Maltese and not by others...
"This is an issue of sovereignty and competitiveness," he said.
To allow the EU to decide for Malta would be to undermine the economic model which had been so successful, such as in the financial sector.
He also referred to reports that Prime Minister Lawrence Gonzi was saying he does not agree with the Council of Ministers' recommendation to again increase pensionable age.
When this recommendation was made in June last year, Dr Gonzi had not said anything and it had to be the Opposition to bring the matter to the public's attention, he noted adding that the government had undermined its position by not making it immediately clear.
Dr Muscat said that yesterday was the first time that the EU had moved forward with a clear agenda for European growth.
For the first time, the EU was acknowledging that there could be no realistic deficit reduction without economic growth. For the first time, Dr Muscat said, one could see a ray of light for Europe.
Dr Muscat spoke on changes to the Electoral Law to be proposed by the government shortly and on which there was wide consensus.
These changes, he said, included ensuring that everyone who was 18 by election date cast their vote. This could be achieved through a rolling electoral register. Another proposal which the opposition agreed with was for people in hospital to be able to vote in hospital.
Dr Muscat criticised the Finance Minister and said that had he been employed in the private sector, he would have been dismissed long ago.
While in the last budget the government had said that the deficit this year would go down by €50 million, five months into the year, this had increased by €83 million.
Dr Muscat said that the government would get to its targets by the end of the year by reducing capital expenditure, but not the expenditure on the new Parliament.
He noted that debt had increased by €141 million in six months when the target until the end of December was for it to increased by €105 million.
More interest was being paid as a result of the increase in debt with Malta's interest payment in six months increasing by another €4 million. In six months the country paid €92 million in interest, a third more than it spent on education.
Dr Muscat welcomed the recent changes to Matsec examinations, which were making the system more accessible and said that Malta should also develop its own vocational examinations, which would be recognised EU-wide.
He promised that contrary to the rumour that was being spread, a Labour government would retain the system used by independent school whereas they employed LSA's and were then reimbursed by the government.
On Malta's former ambassador to the EU Richard Cachia Caruana, who resigned a few days ago following the approval by Parliament of an opposition motion censuring him, Dr Muscat said that it had been easier to discover the €500 a week increase ministers had given themselves than what Mr Cachia Caruana's financial package was.
The only thing that was said was that Mr Cachia Caruana was entitled, in the same as ministers, to a payment benefit at the end of his career.
Dr Muscat said that it was an insult to all professionals who worked to push Malta's position to say that if Malta did not qualify for Objective 1 funds, it was because Mr Cachia Caruana was not there. If the country's position was prejudiced, it was only Lawrence Gonzi's fault, Dr Muscat said.
He welcomed the publication of the Cohabitation Bill but noted that it was just a title.
He referred to Pride Week activities and said that society should now take the next step and move from tolerance to equal rights for all, irrespective of sexual orientation.