The Nationalist Party has condemned Green MEP Sven Giegold’s "irresponsible" threat to campaign for HSBC to end its operations in Malta, insisting the private sector should not be blamed for the government’s failings.

In a statement on Monday evening signed by MPs Mario de Marco and Kirsty Debono, the party said Mr Giegold was correct in his comments on the European Banking Authority’s report of serious irregularities in the FIAU and MFSA.

Nevertheless, the PN said, blame could not be attached to the private sector, and said it was “an act of irresponsibility” for Mr Giegold to put pressure on a private financial institution.

“The PN stands with HSBC and its 1400 employees in Malta who work with the utmost diligence and professionalism to ensure Maltese and European regulations are fully applied,” it said.

“MEP Giegold and his colleagues should join the PN in increasing pressure on the government and its behaviour, but this should not prejudice third parties who are independent of that behaviour.”

Alternattiva Demokratika chairperson Carmel Cacopardo said Mr Geigold’s intention to fight money laundering may be good but his method was “an exaggeration”.

In comments to The Sunday Telegraph, Mr Giegold said HSBC should close its business in Malta if the government did not take more concrete action to tighten up money-laundering regulations.