Negotiations regarding the EU Budget are at an early stage with only the first set of figures having been decided and published, EU Funds Parliamentary Secretary Aaron Farrugia said in Parliament on Wednesday.

Replying to a Parliamentary question by Nationalist MP Robert Cutajar, who referred to reports of a €200 million drop budgeted for use by the Maltese Islands, Dr Farrugia said the economy was in a better standing than it had been in 2012, when the previous funding package had been negotiated and awarded.

He also mentioned new challenges faced by the EU, including Brexit, which would leave a €13 billion hole in the EU budget, and new pressures on security and defence.

Opposition MP Simon Busuttil pointed out that although the Maltese economy was better off in 2012 than it had been in 2004, a far better budget allocation had been obtained for Malta in 2012. He questioned Dr Farrugia on whether the Maltese government was approaching the negotiations with any “red lines” in mind.

But Dr Farrugia said negotiations were at an early stage and further information would be provided “at the opportune moment”.

Malta, he said, would be resisting any attempt to centralise national tax competencies in Brussels.

Dr Farrugia also pointed out that membership of Bulgaria and Romania in 2007 had caused a “statistical effect” that was corrected by the disbursal of more funding in 2012.

He called upon Maltese politicians to band together to convince Brussels that additional funding was needed to consolidate progress achieved since the previous EU budget had been negotiated, a “win-win” situation for Malta and for the single market as a whole.