Malta is one of eight EU countries which have opted out of a public prosecutor's office to investigate and prosecute cross-border criminal cases affecting the EU budget over concern the new office would interfere in its justice systems.

The other countries are Britain, Denmark, Hungary, Ireland, the Netherlands, Poland and Sweden.

It will be able to opt-in later.

EU Justice Ministers agreed yesterday to establish an independent, European, public prosecutor's office to investigate and prosecute cross-border criminal cases affecting the EU budget. The office will try to reap back €50 billion lost annually through lost sales tax or VAT.

The Luxembourg-based office will have the power to investigate and prosecute cross-border corruption or fraud with EU funds and cross-border Value Added Tax or sales tax, fraud.

Every year EU member states lose at least €50 billion euros in revenue from VAT tax due to fraud schemes run by transnational organised criminal groups.

Currently, national authorities are limited because they can only investigate and prosecute EU-fraud within their borders. They also face hurdles investigating and prosecuting complex financial fraud cases that involve multiple member states.

The cross-border agencies European Anti-Fraud Office (OLAF), Eurojust and Europol are also limited because they do not have a mandate to conduct criminal investigations.

With the formation of the European public prosecutor's office, these other EU-wide organisations will have more resources freed up to deal with terrorism, human trafficking and other crimes.

The new office must first receive approval from the European Parliament before it can go into effect.