The European Commission sees no reason to introduce rule of law sanctions against Malta but is keeping a close eye on the country, a top Brussels policy maker said on Tuesday.
"At this stage there are no grounds for sanctions but we keep looking into the issue and if at some stage there will be grounds for sanctions, we will not hesitate to propose those sanctions," EU Commission first vice-president Frans Timmermans said.
Mr Timmermans was answering a question by a France 2 reporter, who highlighted rule of law concerns surrounding Malta's cash-for-passports scheme and noted that Daphne Caruana Galizia had faced legal threats for writing about the scheme.
"We will certainly make a full assessment of the situation and act when that is necessary - and this is well known by Maltese authorities and by the European Parliament, that supports the Commission's position on this."
READ: What fact-finding MEPs said about the rule of law in Malta
In the months since Ms Caruana Galizia was killed, Mr Timmermans has openly urged the Maltese government to "leave no stone unturned" in their hunt for the murder masterminds while also telling MEPs to "let the [murder] investigation run its full course" before drawing their conclusions.
He has since announced that the Commission will, by the end of the year, be proposing a new mechanism to monitor the rule of law in EU member states.
A follow-up question about the Prime Minister's chief of staff Keith Schembri allegedly receiving kickbacks for the sale passports drew a stiffer response from Mr Timmermans.
"We look into all the allegations brought to the table - all the allegations," he told the French journalist, who held up a document he said highlighted Mr Schembri's involvement in the scheme.
An April 2016 Financial Intelligence Analysis Unit report had highlighted suspicious transactions from Willerby Trade Inc into Mr Schembri's personal account.
In the report, the FIAU had questioned how funds "originating from the personal accounts of applicants under the IIP scheme ended up in the personal account of a very senior Government official within the Office of the Prime Minister after having first been transferred to the bank account of an offshore company held with a private bank."
Mr Schembri has denied all wrongdoing.
Commission vice-president Timmermans avoided reference to allegations surrounding Mr Schembri - "I cannot go into individual claims," he told the press - but said the EU was doing everything within its power to get to the bottom of matters.
"The Commission will not let this go, and the Maltese people can count on this commitment," he said.
Mr Timmermans was answering questions during a General Council press conference held jointly by the EU Commission and Bulgarian presidency of the EU Council.
Watch a video recording of the entire press conference.