Labour leader Joseph Muscat has been challenged to either deny or assume responsibility for the criticism his predecessor had made of the euro and VAT.

Speaking in Parliament on Tuesday, former PL leader Alfred Sant reiterated his scepticism of the single currency, which he always insisted had been adopted hastily by Malta, and VAT, his battle cry in the 1996 general election.

Prime Minister Lawrence Gonzi noted at a Nationalist party conference yesterday that there was only one PL and comments made by any of its spokesmen were also made on behalf of the party and its leader.

"If Joseph Muscat has control over the situation, I expect him to either make a clear categorical denial of what Dr Sant said or assume responsibility for that statement," Dr Gonzi said.

A PL spokesman said Dr Sant was not criticising the euro but the way Dr Gonzi's Administration handled its introduction.

"It is also interesting to note that when PN ministers, MPs, MEPs and candidates express opinions that are diametrically opposite to those of Lawrence Gonzi's, the latter dismisses them as simply a 'colour in a rainbow'," the spokesman said.

He said the PL was committed to work within the framework of EU and eurozone membership.

During the PN conference, held to mark Workers' Day and the fifth anniversary of Malta's EU accession, Dr Gonzi stressed that the euro was the biggest shield to safeguard the economy.

"The euro is the second strongest currency in the world and its introduction was a victory for everyone," he said.

He said his government would continue working to increase the number of jobs on the island, adding that it was a shock for any employee to be made redundant.

"We are feeling the crisis and jobs are being lost but we are managing to generate new ones," Dr Gonzi said, insisting there were 7,000 new jobs within a 12-month period.

Dr Gonzi said certain important changes, like electricity tariffs and rent laws, were inevitable and could not be postponed. He stressed the importance of dialogue, saying that sitting round a table to discuss issues was becoming more difficult.

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