PM hopes eurozone stability could be reached without Treaty overhaul

Prime Minister Lawrence Gonzi said France and Germany's proposal of a new treaty to address the eurozone crisis should be only implemented if all other measures fail.

Addressing the media as soon as he landed in Malta from Denmark, Gonzi called for the need to be prudent as full details of the Merkel-Sarkozy meeting and proposals made by EU President Herman Van Rompuy, still have to emerge.

 "If there is need of a change in the treaty for the eurozone to recuperate and avoid having member states that do not comply with the stability act, then we are ready to contribute," Gonzi said.

"However, we are more in favour of reaching these objectives without changing the treaty. Malta does not believe the current problem will prolong. What it needs are immediate solutions."

Gonzi said the EU still had to discuss whether the only way to regain financial stability would really be carrying substantial changes: "We believe there are other practical ways by which we could obtain stability and calm the markets."

He said Malta was in favour of measures that would control countries with excessive deficits.

Reacting to the Standard & Poor's warning to Malta and 15 other eurozone member states that they have been placed under the credit rating agency's CreditWatch, Gonzi said their statement was clear: "S&P are analysing the eurozone situation and recognising that bigger countries, such as Italy, are undertaking drastic measures," Gonzi said. "Like I have been saying during the last days, S&P is saying that countries need to be cautious as 2012 doesn't look like it will encourage economic growth."

The Prime Minister said Malta needed to remain cautious if it wanted to obtain its 2012 goals. He also reiterated that by the end of this year, Malta will manage to have a deficit below the 3%, making one of the few countries to have its excessive deficit procedure removed by the European Union.

He also sounded optimistic that Budget 2012 will help the country's economy move forward.

Giving a brief analysis of the talks held in Copenhagen with Danish Prime Minister Helle Thorning-Schmidt, Gonzi said the Danish Presidency would seek to address Europe's fiscal responsibility.

"For Malta these discussions are crucial as we highlight our priorities and put forward all arguments to continue benefitting from the European solidarity," Gonzi said.

The second topic discussed between the two Prime Ministers was the strengthening of the internal market. "She [Thorning-Schmidt] stressed on a dynamic Europe which could create more jobs," Gonzi said. "Malta's position is clear: we want to see Europe's internal market grow and strengthened, but also want a level playing field in all digital sectors and open without obstacles."

On green jobs, the Prime Minister said Denmark was to discuss ways by how to stimulate this sector. "This is highly important for Malta. Government has, for the last months, insisted on the interconnector with the European grid and the gas pipeline connecting Malta and Europe."

Gonzi added the European Union has already shown positive feedback towards the pipeline.

The Danish Prime Minister also spoke about a safe Europe, in which Gonzi recalled his meeting with the new Libyan leadership. "It is important for the European Union to recognise that working together with Libya could be of benefit not only to the Mediterranean Region but also to the whole of Europe," Gonzi said.

Both Prime Ministers also discussed the proposals made by France and Germany, and added that it would be discussed in more detail.