The Malta Independent 23 April 2024, Tuesday
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Watch - ‘EU state aid procedures should be reappraised drastically - Alfred Sant

Saturday, 18 April 2015, 07:33 Last update: about 10 years ago

Former Prime Minister Alfred Sant told the European Parliament that in a Europe which should stand for the welfare of all citizens, there should be no place for state aid rules that seek fairness for big enterprise, and deny support to small and traditional concerns.   State aid procedures employed  by the European Commission to vet commercial and economic decisions need to be reappraised drastically.They are increasingly failing to recognize that the single market is a fractured one.

Dr. Sant said there is a refusal to recognize that state entrepreneurship can be a valid tool in peripheral regions by which to promote new economic activity or sustain old and dying ones. ‘All this is unfair and mistaken.’ He stressed that some economic activities of peripheral regions -- islands, coastal and mountain areas -- need state subsidies to survive, if we want them to survive. He said that relatively marginal activities in peripheral economies which account for a minimal percentage of overall turnover in  the single market, should be exempted from state aid criteria when investment and commercial measures are being taken in their favour.

‘But decisions are increasingly relying on one size fits all methods.’ he reiterated. Peripheral regions with limited endowments have been subjected to competition from areas where vastly superior resources prevail. Traditional small scale occupations run by micro enterprises are not allowed protective breathing space.

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