In his last speech as President of the Chamber of Commerce, Industry and Commerce, Anton Borg underlined the importance of trade with the UK.

Addressing Prime Minister Joseph Muscat, Mr Borg said:

Allow me to start by thanking you for once again accepting our invitation to meet and address the Chamber's members. We genuinely appreciate such opportunities to elaborate our views on matters of importance to the country and the private sector. My intention today is to address you as the leader of the country currently holding the Presidency of the Council of the European Union.

As I bring this challenging yet rewarding two year term to a close, I feel obliged to reflect on a number of factors with a European or international dimension that characterised the past two years.

Malta's Presidency of the Council of the European Union, the Brexit Referendum and forthcoming exit negotiations, a string of terrorist attacks, the 60th Anniversary since the signing of the Treaty of Rome, the political instability in neighbouring regions and the resulting migration issues guaranteed that this term was extremely eventful and extraordinary.

Threats to the European Union

The past 24 months saw an unprecedented surge in worrying discourse about the seemingly inevitable disintegration of the European Union. In the 1950s, US President Eisenhower referred to the electoral victories of communist guerrilla parties as a "domino effect". The prospect of a similar domino effect was also a staple of discussions on the Brexit referendum. Many feared that any first mover would trigger the implosion of the EU during a year characterised by major elections in most of the EU's major economies.

Following the outcome of the Brexit Referendum and the election of President Trump, victory for the Dutch populist anti-EU candidate Geert Wilders was not unthinkable, as is potential victory for Front Nationale in France and the AFD in Germany.

However, many of us breathed a sigh of relief once the Dutch election results were announced almost two weeks ago. The results confirmed the trend rekindled by the Spanish electorate that re-elected Rajoy in the days following Brexit, and the Austrian Electorate that chose pro-European Van der Bellen last October.

So, thankfully, it seems that the democratic norms and freedoms that European Union citizens take for granted continue to be valued by all. I say thankfully as the politics of the aforementioned populist parties and politicians would harm the quality of life that Europeans are now accustomed to. They would be detrimental to business, employment, trade and most importantly, peace and stability. At a time when Europe faces numerous threats from the outside, it is paramount that internally, the Union remains strong and united - with its values of democracy, human rights and solidarity firmly rooted at its core.

 

While the domino effect may be convenient rhetoric during the coming Article 50 negotiations, there is outstanding evidence of this pro-European surge being furthered by the results of the forthcoming French and German elections. With Pro-European leaders, a post Brexit EU is more likely to opt for political cooperation, common defence and common debt rather than abrupt disintegration.

Treaty of Rome 60th Anniversary

As you all know, the Union in which we are proud members and that has changed our lives for the better - has just celebrated its 60-year anniversary. At these thought-provoking times for international politics, it remains in our interest to ensure that 60 years on, the Union remains relevant and continues to improve the lives of its present and future citizens. To this end, this anniversary also serves as the start of a new chapter - a chapter that must aim to address numerous challenges such as security and the continued well-being of citizens.

To celebrate this occasion, the Commission released a White Paper on the Future of Europe. The paper identifies five very different scenarios for Europe by 2025, depending on the policy decisions made today. The Commission suggests that the Union may either continue to deliver its present positive reform agenda, or it may gradually re-centre solely around the single market. A third possibility would be to allow willing member states to do more in specific areas, while a fourth option would be to move to a Union focused on delivering more in selected policy areas and less in others. As a fifth possibility, the Commission also proposes a Union that does much more, together, across all policy areas.

From amongst these five different paths there may yet emerge various hybrids and combinations as we discussed last week in Rome during a BusinessEurope meeting between Presidents of National Federations. We feel that this may lead to an opportunity to remove the concept of "one-size-fits-all" which us the common denominator of all European regulation - because, as we all know, one-size does not fit all. Despite the dilemmas presented by the different paths and potential variants, one thing is certain - change within the European Union is inevitable.

Our Chamber has not yet expressed itself on any of the individual paths proposed. It does not intend to do so until we exhaust our internal discussion process and until we co-ordinate with our government.

Ultimately, what business wants is a European society in which peace, freedom, tolerance and solidarity remain core values. We want to continue to live in a democracy with diversity of views and an independent, critical press. We also want to continue to be free to speak our mind, to be treated equally and to have the opportunity to create better lives for our children.

At these crossroads, the Chamber unequivocally remains a staunch supporter of the European Union and Malta's membership. I am certain that the vast majority of us present here this evening would not be in the same situation today had it not been for the opportunities provided by the single market and the single currency.

Brexit Negotiations

Honourable Prime Minister, on the subject of Brexit, kindly allow me to reiterate the importance of undisrupted trade with the UK in all economic sectors. Many Maltese businesses depend on stable and cost-effective trade relations with the UK. We understand the government's position to favour a deal that is less favourable than

 

membership, however, during the European Council meeting to adopt the guidelines for the Brexit talks on 29th April, we urge you to deliver a message we have repeated on many occasions in your presence, that notable disruptions to present trade practices and costs will have severe repercussions on the economy. Europe's negotiators must go to any necessary length to preserve trade and business relationships between Europe and the UK.

Malta's Presidency of the Council of the EU

On another note, I wish to congratulate you for the tireless preparations in the run up to Malta's Presidency of the Council of the European Union that have, until now, borne positive and rewarding fruit.

Efforts on a legislative level have seen the Malta-led Council reach agreements on a number of challenging dossiers, namely the portability of online content in the Union and ending roaming charges. Our permanent delegate in Brussels has also informed us of the substantial work underway at Dar Malta in the areas of consumer protection, emissions trading, anti-tax avoidance, security of gas supply and geo blocking.

The presidency has also served to truly place Malta on Europe's political map. Our Chamber has been invited to participate in a number of exclusive boards and fora such as BUSINESSEUROPE's Vice President Committee and Executive Board, as well as the Council's Tripartite Social Summit.

I am also delighted to inform you that Chamber's preparations for the upcoming COPRES meeting, BUSINESSEUROPE's bi-annual high level meeting for the presidents of all member federations, are well underway and shall ensure that an occasion of such importance is successful, memorable and effective. On behalf of the Chamber, I thank you for collaborating in this regard and look forward to your participation on the day.

State-aid study

I also wish to make reference to one of the Chamber's notable endeavours on a European level to enhance the county's competitiveness. As Government was in the process of formulating its priorities during the run up to the Presidency, employer organisations also sought to influence these priorities to ensure that businesses also benefit from the rare opportunity that a country's presidency offers.

Following numerous discussions, Malta's employer organisations formally presented a manifesto of business priorities for Malta to champion during its Presidency. A significant priority in the document was to mitigate the pressures on the competitiveness of manufacturing operations in peripheral small island states.

To this end, the Chamber commissioned a landmark study by four academics from the European Centre for Strategic Analysis. The study included extensive desk research, numerous surveys, interviews and a literature review, with Malta as a case study. It identified substantial inconsistencies in the treatment of a number of island regions and States in the EU's State Aid regulations and proposed constructive recommendations to address this situation.

Prime Minister, we thank you for meeting us and the authors of the report last month when we gave you a detailed presentation. We are encouraged by your agreement on the contents and recommendations of our report and we look forward to working with you and your government for the purposes of making the necessary

 

representations at the highest political levels. We are pleased to support you in this task and we will seek to co-ordinate closely with you on the matter in the coming months.

Conclusion

To conclude, I wish to personally thank you Prime Minister for devoting a substantial amount of your time to share views on so many occasions, be it in settings such as this afternoon's, or during our many one-to-one meetings.

It was my honour to collaborate with you closely on a number of issues and I'm sure that you will agree that in the Chamber you have found an honest and objective interlocutor.