The European Commission's Vice-President for jobs and investment, Jyrki Katainen said that the migration situation is an international crisis which requires international solutions.
He was speaking to the press alongside Deputy Prime Minister Louis Grech, a meeting that primarily focused on the European Investment Plan, which will generate 315 billion euros to be used by all EU member states.
He explained that the EU must work with organisations and other countries to stablise the situation in crisis areas, and mentioned the need for EU institutions in countries of transit. He said that when the crisis began, the EU states were not prepared, however they have begun to deal with the situation. As for international solutions, he mentioned the need for a more efficient returns policy. “Most people arriving on our shores are facing inhumane situations at home. We must carry the human responsibility to those people and be pragmatic in finding solution. We must make it so everyone can find a fair migration policy and take care of those who deserve international protection."
Vice President Katainen, stated that the commission is working on a unified and comprehensive plan. This plan would address the priority of saving human lives, and the issue of placement of asylum seekers and refugees.
Deputy Prime Minister Louis Grech said that he was a member of the European Parliament for a number of years, and notes that the European Parliament and Commission have worked hard on the issue, however member states have seen a division on topics such as burden sharing.
He said that that the EU must not only speak about investment and competitiveness, migration must be discussed as it is the other side of the coin. Mr Grech stated that “we feel that the status quo” in relation to migration, “is untenable”. He continued by saying that the EU has done too little and too late in this regard, and that the matter was given proper attention only after the Lampedusa tragedy, where hundreds of migrants lost their lives trying to reach European shores.
Turning to the EU Investment Plan, the Deputy Prime Minister said that it is aimed at accelerating economic recovery, which has stalled since the financial crisis in recent years. The investment plan is also aimed at increasing growth, job creation and generating investment. He went on to say that the interesting element that the Investment Plan is addressing is the market failure prevalent in the economy today. Private investors do not have confidence in European markets, therefore they are reluctant to invest. In addition to this, private banks are more reluctant to finance risk, due to the part they played in the financial crisis that has crippled Europe. This lack of confidence and limitations to financing is the main market failure that is halting EU economic recovery.
€75 billion of the €315 billion will go to projects undertaken by SMEs. The EU Investment Plan was the theme of discussion in a high-level debate including local business stakeholders, which saw the participation of European Commission Vice President Jrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, as well as European Commissioner Karmenu Vella, responsible for the Environment, Maritime Affairs and Fisheries.
Mr Grech said that the investment plan, as well as the initiation of a Maltese Development Bank would go a long way in addressing this particular market failure. He stated that this project is intended to address the private sector as well as the public sector, that with this plan and development bank, the idea is not to crowd out commercial banks, but rather crowd in banks and potential investors, ultimately improving investor confidence.
The Maltese Development Bank is hoped to be ready for initiation in 3 months time. The majority of clauses have already been approved by the Commission, however there are a few more details that still need to be discussed. The idea of the Development Bank is to co finance projects, act as a guarantor and provide equity.
Mr Grech added that the government feels that this project is a good initiative, outlining that there will be an advisory hub for investors coming from all sectors, in order to provide assistance and support for potential projects.
Mr Katainen spoke of discussions regarding the deepening of the single market. He said the Commission believes that the single market is the motor of economic recovery and that certain failures in the single market, especially in the digital market, which is believed to have the potential to generate a lot of wealth as well as jobs, could be addressed through this EU investment plan. He said that the structural reforms made during the financial crisis is a reason for the strong and stable Maltese economy.
Mr Grech spoke of discussions regarding financial market integration, through the use of the capital markets union, which is likely to unlock liquidity in commercial banks and the private sector. He added that the EU and the government are in agreement in this regard.
Mr Grech stated that he believes fiscal policy and direct taxation should be up to the Member States, and not be decided at a supranational level. He spoke of the health of the Maltese economy, and the danger of being complacent. Mr Grech said that Malta is not being complacent in this regard, and that reforms are underway in order to ensure the continuation of economic stability and growth.
A question was posed regarding the Marsamxett Breakwater, as well as the other projects which were proposed to the EU. In response, Mr Jyrki Katainen said that the European Commission does not enter or involve itself in that, but rather negotiations and discussions would be held with the European Investment Bank to see if it is suitable for normal operations, or if it is riskier and this would go through the European Fund for Strategic Investments.
Deputy Prime Minister Louis Grech said that government, aside from those projects, is also looking into others, related to the health sector, renewable energy and transport. On the idea for the Marsamxett Harbour breakwater, the Deputy Prime Minister said it is obvious that it should be developed, and construction would not cause any inconvenience. It would also result in benefits.
Turning to the Transatlantic Trade and Investment Partnership, Mr Jyrki Katainen said He said he is in favour of the partnership and mentioned that the TTIP negotiations have been more open than other trade investment agreements have been. “It faced much criticism for a number of reasons, where some people are worried about free trade with the US, others are worried about certain specifics. The EU will not sell its fundamental rights on an alter of free trade, such as labour rights, social rights and environmental values”. He mentioned that this will help small and medium sized businesses sell their products in the USA with more ease.
Mr Jyrki Katainen also had a meeting with Opposition and Nationalist Party leader Dr Simon Busuttil.
Photos Michael Camilleri