Parliament yesterday unanimously approved the committee stage and third reading of the ratification of the European Stability Mechanism (ESM) treaty with some amendments.
Malta’s ratification comes before that of other European states, including Germany, where it is not expected to be ratified before mid-July due to a constitutional issue.
At the beginning of the sitting, Finance Minister Tonio Fenech tabled the letter by the European Commission’s legal office – the general directorate for economic and financial affairs – and the interpretation by the lawyers who drafted the treaty, which clarified that all member states “whatever their size” were eligible for bailouts – even “in isolation” and not affecting the euro area.
An amendment proposed by Dr Sant to include the letter by the European Commission’s legal office with the ratification of the treaty was approved.
On questions raised by Dr Sant, Mr Fenech said that although Malta’s paid-up capital in the ESM amounted to €52.4 million paid fully by 2015, it would have to pay another €18 million in 2020 because Malta had reached the 75 per cent of the Objective One status, having reached 75 per cent of the GDP average.
This was the difference between the distribution keys of the ESM and the European Central Bank (ECB) to be paid at the end of the transition period.
The ratification treaty also included a new clause that Malta’s representatives on the ESM Boards of Governors and Directors were to report annually to the House Public Accounts Committee. The clause was moved by Minister Fenech on a suggestion made earlier by Dr Sant.
At the beginning of Friday’s sitting, Dr Sant raised a breach of privilege complaint against In-Nazzjon newspaper, claiming that a report carried on its front page was untrue and malicious.
Dr Sant said the Nazzjon report quoted him saying that Parliament was ridiculous, when he had actually said that Parliament was being ridiculed.
It was true that he had mentioned a German word that could not be used in the German parliament, but people in Malta did not know its meaning and he had no intention of apologizing for it.
Deputy Speaker Ċensu Galea said the chair would investigate the matter and would eventually give a ruling in due course. The sitting stands adjourned until Monday.