Malta votes in early elections tied to Panama Papers scandal

Malta's prime minister claimed victory Sunday in early elections called to consolidate the government's position after his wife was implicated in the Panama Papers scandal, saying unofficial results indicate a "sizeable" win for his Labour Party.

"The people have clearly chosen to stay on the road to even greater results", Muscat said, referring to the strong performance of the Mediterranean island's economy during his first mandate.

Maltese Prime Minister Joseph Muscat (C-L), his wife Michelle Muscat (C-R) and their twin daughters wave to the crowd before entering the Auberge de Castille in Valletta, Malta, on June 5 2017.

"You have confirmed your confidence in the movement despite one of the most negative electoral campaigns in the country's history", he said, pledging to push through legislation that had been put on hold for the vote.

Muscat's second term in office will be the 13th legislature since Malta gained independence.

Before the snap vote was called, Busuttil and the Nationalist Party had demanded Muscat step down over allegations of improper business dealings by his wife and some of his associates.

Muscat has, however, denied any wrongdoing and promised to quit if any evidence emerges of his family having an undeclared offshore account.

Given 340,000 eligible voters, the 38,000 votes lead was massive.

The Panama Papers scandal, which detailed offshore companies and other financial data of the rich and powerful, exposed Malta's energy minister and Muscat's chief of staff as having acquired a company in Panama.

But the allegations had little impact amongst Labour's loyal base against a backdrop of a booming economy and the lowest unemployment the country of 430,000 people has ever known.

Shortly after polls closed, President Marie Louise Coleiro Preca called for a process of reconciliation to begin after what she called a campaign full of "aggressive and abusive language".

"I want to see people returning to open dialogue, which is the basis of a healthy democracy", she said.