Air Malta employees will not be losing their jobs as part of a deal to save the airline, Prime Minister Joseph Muscat pledged today.

Fielding questions from reporters, Dr Muscat told the Times of Malta that the government was in advanced discussions over the airline with a consortium.

What was clear at this stage, he said, was that certain decisions would have to be taken and “things need to be done”.

He was quick to add that this did not mean any employees would be fired. 

Asked if he felt the government had wasted too much time on unfruitful discussions in the previous legislature, Dr Muscat said he felt a lot had been accomplished by previous Tourism Minister Edward Zammit Lewis.

“I think Edward Zammit Lewis was fantastic, now more things need to be done,” he said, adding that the government now had terms of engagement and was in talks with potential partners.

Dr Muscat was later asked by reporters about the future of the financial services sector and its regulator, the MFSA.

He said that over the past few years the government had already taken measures to beef up the State’s institutions.

“The MFSA has, over the years, done some great work. We will continue to work on that,” he said.

Dr Muscat said there was an EU-wide discussion on where the work of the central bank ended and where that of other institutions began. 

Commenting on a recent European Commission report on Malta’s tax regime, Dr Muscat said the government would be reviewing this.

He insisted that taxation was a member state’s sovereign jurisdiction and the government would not allow Malta’s tax competitiveness to be compromised.