Updated: Gonzi battles proposed €300m drop in EU assistance to Malta

Updated - Prime Minister Lawrence Gonzi has started talks with EU leaders in Brussels amid proposals by the European Commission to slash the financial allocation to Malta by some €300 million over seven years. Dr Gonzi is attending an EU summit focused on the European Union's Budget amid demands by Britain and some other countries to freeze or reduce spending. Malta hopes to persuade other EU leaders that the island deserves more EU funding than is being proposed. Over the last seven years Malta benefited from €855 million in EU funds and managed to lift itself out of the group of least developed countries. The Commission originally proposed to reduce the allocation for Malta to €534 million. But as big donor countries like the UK demanded cuts to the budget to reflect austerity measures being taken at home, Malta's position deteriorated even further. The latest figures placed on the negotiation table see Malta's funding dropping to €480 million. "We are arguing that this is unacceptable and that our country will be the only one to move out of the first programme without entering the second. We are seeking a process of transition," Dr Gonzi said. "This means difficult...