[Watch] Merkel meets Gonzi in Berlin, lauds Malta’s economic performance

Addressing the media shortly after a meeting in Berlin with Prime Minister Lawrence Gonzi, German Chancellor Angela Merkel praised Malta for "amply proving" what she described as its "excellent economic data".

The Chancellor stressed that Malta is an example of how one could still achieve results, despite the  difficult environment. Malta, Merkel said, had developed well, and insisted that the island's 'particular circumstances' must be catered for in the EU Budget.

Merkel called on all EU leaders for a 'quick' decision on the pending financial framework, which talks had ended in a stalemate last December.

Flanked by Gonzi, Merkel also spoke about the financial crisis which has hit Cyprus, warning that there cannot be any 'special rules' for the island's urgently needed bailout, and stressed that talks about the bailout with Nicosia are "far from over".

The comments follow reports this morning that the Cypriot loan deal will be delayed until communist president Dimitris Christofias has left office, in February (suggesting a deal might not come until March). If true, it is widely expected that Cyprus may face a shortage of cash.

Last month, Cypriot government officials denied claims that the country was struggling to fund wage payments to civil servants.

Meanwhile, Gonzi hailed Merkel's leadership role during the economic crisis, saying that her policies were 'right in curbing the crisis'.