Speaking at a conference organised by the Maltese-US chamber of commerce, ambassador Rockwell Schnabel said many businesses in the US had to restructure 10 to 15 years ago because they were no longer competitive.

“Unfortunately, most of the time it was because there were too many employees in companies and there were lay offs. But the results are being felt now,” he said.

Mr Schnabel said it was necessary to face up to reality to be able to do business in this modern world. “And now of course you are joining the EU. You only have to look at how former dictatorship states such as Greece, Portugal and Spain have fared to see the opportunities that are up for grabs,” he said.

Mr Schnabel said that while results were not always instantly tangible, they were always felt in the long run. “

Ireland for example is a hive of activity; 10 years ago, you could practically feel the emptiness,” he said. Mr Schnabel said that the US was looking forward to working with Malta in the EU forum. “But of course Malta and the US have their own bilateral relations and these will continue,” he said.

Mr Schnabel said that the EU was increasing in importance to the US. “Over one million jobs in the state of California alone depend on the EU and that is why it is so important to the US.

US-EU trade accounts for 60 per cent of the world’s gross domestic product,” concluded Mr Schnabel.

Mr Schnabel also met Prime Minister Lawrence Gonzi later in the day.