Maltese Foreign Minister Mr John Dalli resigned today after just over three months in office, and will be replaced by his junior minister, Mr Michael Frendo, the government information department said.
Mr Dalli was appointed foreign minister in March after losing a contest for the leadership of the ruling Nationalist Party to Mr Lawrence Gonzi, who became prime minister when Mr Eddie Fenech Adami retired at the age of 70.
Both took office only weeks before Malta, along with nine other countries, joined the European Union on May 1st.
In his previous post as finance minister, Mr Dalli introduced VAT and modernised the income tax system, but failed to control a mushrooming financial deficit, which is currently running at 9.7 per cent of GDP.
The information department did not say why Mr Dalli was resigning, but there have been allegations, which he has repeatedly denied, that he used his official position to help businesses belonging to members of his family.