The negative implications of the Panama Papers scandal on Malta’s financial services has not yet been fully understood, according to MEP Alfred Sant, who said focusing on this should be a priority.

“Malta’s financial services will be affected in a great way. The Panama Papers are a direct attack on our financial services market,” the Labour MEP said during a question and answer session with a group of journalists in Brussels.

Yet while acknowledging the negative consequences of the leak, the former prime minister would not comment on whether Energy Minister Konrad Mizzi should resign.

Dr Mizzi was on Sunday mentioned in the Panama Papers for having an offshore company in Panama owned by a New Zealand trust he had created.

At this stage, I won’t comment on Konrad Mizzi

Instead, he said, he was more intent on focusing on the implications this would have on Malta’s financial services.

“At this stage, I won’t comment on Konrad Mizzi. Let’s see that scenario develop first,” Dr Sant said.

Yesterday, Prime Minister Joseph Muscat said he would not rule out dismissing Dr Mizzi, following growing negative public sentiment on the Panama scandal.

On whether the Socialists and Democrats – of which Dr Sant forms part of – would be putting pressure on the Maltese government to take action against the minister, Dr Sant said that the party had not discussed the issue, despite Dr Mizzi being the only minister in the EU to be mentioned in the Panama Papers.

“Discussions on the Panama Papers are still ongoing. Basically all that has been discussed featured in the statement issued by the S&D, but there is still a whole debate going on about the overall effects,” Dr Sant said.

The Malta Employers’ Association on Wednesday expressed concern about the impact that “governance issues” were having on Malta’s reputation as a financial services centre.