Malta’s Finance Minister, Edward Scicluna, appears to have become a casualty of the backlash in the EU as Malta comes under increasing scrutiny over its tax regime and connection to the Panama Papers.
As the 19 eurozone finance ministers meet in Brussels on Monday to choose who among them will head the powerful Eurogroup, Prof. Scicluna has not put his name on the ballot sheet.
This despite the fact that earlier this month, the minister – considered one of the most upright members in the Muscat cabinet – declared publicly that he was interested in contesting.
He said much depended on the internal politics of the decision, as he would only stand a chance if the position was to be occupied by a socialist.
This will indeed be the case: the European People’s Party (EPP) has decided not to contest the election, leaving the way open for a socialist minister to occupy the post.
Yet Prof. Scicluna is not on the final list of contenders.
READ: Latvia, Luxembourg, Portugal and Slovakia vie for eurogroup chair
The socialist group has decided to back Portuguese Finance Minister Mario Centeno, who is now the most likely winner of the four contenders. The others are the finance ministers of Slovakia, Latvia and Luxembourg.
Sources close to the Eurogroup told The Sunday Times of Malta that although Malta had signalled its interest in the position, the election of Prof. Scicluna was never really considered.
The fact that Malta is under such scrutiny… means that Prof. Scicluna was automatically disqualified
“Minister Scicluna did a good job during Malta’s presidency of the EU. However, he represents a small country, which is already a disadvantage,” a senior EU diplomat said.
“That Malta is under such scrutiny at the moment and the continuous mention of the island in connection with the Panama Papers, tax dodging, tax havens and the problems relating to the rule of law, means that Prof Scicluna was automatically disqualified.”
Another diplomat said: “In reality, even though he signalled his interest, minister Scicluna understood our reaction immediately.” Asked by this newspaper for an explanation, Prof. Scicluna did not reply.
Maltese nominees for EU posts have not had an easy ride in recent years.
Former Labour deputy leader Toni Abela’s nomination to be a member of the European Court of Auditors was rejected by MEPs, forcing the government to replace him with Leo Brincat.
Mr Brincat too was given a rough ride. After securing the vote at committee stage, his nomination was defeated in the European Parliament plenary, only to receive the green light by the EU Council, representing member states.
On the other hand, former Minister Karmenu Vella made it through the EP’s grilling to become Labour’s first ever European Commissioner in a relatively easy process that took place a year after Labour came to power.
The current EU focus on matters of taxation and the rule of law in Malta could mean the country will have a harder time getting its future nominations for EU posts through.
Dr Muscat himself has declared that he does not plan to contest the next general election. If, as has been rumoured for some time, he is interested in a top EU post, the latest developments do not look positive for him right now, one observer told The Sunday Times of Malta.