The concept of a Mediterranean Union was taken one step closer to becoming a reality yesterday following unanimous endorsement by European Union leaders congregating in Brussels for their spring council session.

The concept, proposed by former Maltese foreign minister Guido de Marco as far back as 1995 and resuscitated in its current format by French President Nicolas Sarkozy, would see the Barcelona Process being integrated into the Mediterranean Union concept to see an alliance of cooperation forged between the EU and non-EU Mediterranean coastal states of North Africa and the Middle East.

The full concept, which is being dubbed the “Barcelona Process: Union for the Mediterranean”, will be defined by the European Commission and presented to European leaders at the 13 July summit to be convened in Paris.

With France, the proposal’s champion, assuming the EU presidency in July, the issue is expected to be placed at the top of Mr Sarkozy’s agenda during his six-month stint as EU president.

Speaking to journalists after the wrapping up of the informal summit yesterday, Prime Minister Lawrence Gonzi lauded the notion and augured that Malta would have an obviously important role to play in the workings of such a union.

Foreign Affairs Minister Tonio Borg remarked that “any measure building confidence and inspiring peace in the Mediterranean region would be viewed positively by Malta and the Mediterranean Union proposal is of particular interest to Malta.”

The concept would also tie into immigration issues, another area of major concern for Malta. Dr Borg explained that fears had been expressed by the EU’s foreign ministers over the future of the Barcelona Process in light of the development of a Mediterranean Union, but a solution tying the two concepts into each other had been forged yesterday.

In addition to the Mediterranean Union issue, Dr Gonzi outlined the main topics of discussion over the two-day council meeting wrapping up yesterday – the stability of the global economy and its financial markets, the new cycle of the Lisbon Strategy, the international prices of oil and cereals, and the closely interlinked issues of climate change and energy supply.

As stressed in the recent electoral campaign, Dr Gonzi explained, the economic realities resulting from an economic slowdown in the United States and global financial markets would invariably have repercussions on the EU and on Malta as well.

In terms of the new cycle of the Lisbon Strategy, Dr Gonzi observed how one of the most important challenges being faced by Malta was that of increasing labour force participation rates, particularly that of women, which has been addressed, with success, in Budgets 2007 and 2008. The Strategy’s next cycle, he said, would be applying a focus on knowledge, education and on innovation and research and development. Education, he said, was already one of the three pillars of the government’s strategy, while initiatives such as the recent agreement with CERN and the University of Malta were also pointing the way forward in the areas of R&D and innovation.

Small and medium sized enterprises, which Dr Gonzi described as the backbone of the Maltese economy, are to be assisted by the government with the assistance of civil society through trimming red tape so as to simplify the business process to make life easier for businesspeople, coupled with the economic stimulus projected in the income tax cuts announced in the PN’s electoral manifesto.

The reduction of administrative obstacles, Finance, Economy and Investments Minister Tonio Fenech commented, were also being foreseen in the Small Business Act currently under discussion, which he said he hoped would be concluded and implemented as soon as possible.

Dominating discussions Thursday night and yesterday morning were the issues of climate change and energy, where, Dr Gonzi said, the EU was looking to become front liners in the fight against CO2 emissions.

Dr Gonzi described the dual theme as “phenomenally important for Malta’s particular circumstances”, adding that the current legislature would be giving the area of sustainable development a dedicated focus.

Plans for the establishment of an offshore wind farm, which would go a considerable way toward Malta’s commitment to meeting the EU’s goals in the area, were well underway and could be expected to come to fruition soon.

The problem, he said, was one of “hardware” - of anchoring the installations in the deep waters off Malta and that concrete action in the area would be taken soon.

Mr Fenech remarked that when it came to cultivating research and development activities, it was up to the private sector to seize the reins while the government was tasked with providing the right climate in which such activities could be fostered.

Incentives being proposed by EU leaders, he observed, such as providing incentives for individuals to take up careers in research had already been started by Malta in the form of the scholarship fund for students to take up studies abroad in subjects not currently offered in Malta.

Responding to yesterday’s high inflation rate for Malta published by Eurostat, where Malta had a four per cent annual rate for February but the lowest 12-month average of 1.2 per cent, Mr Fenech remarked the rate was not alarmingly higher than the EU average and that the 10 per cent rise in foodstuffs warranted a detailed analysis.

Food prices, he said, were mainly internationally-derived, while hikes in clothes and restaurants were natural seasonal spikes caused by the end of the winter sales and traditional spikes at eateries in the lead-up to the busy summer season. The hike in the cost of foodstuffs, Mr Fenech explained, had been forecast early on and had been combated by having given an extra cost of living adjustment in the last budget.