Speaking at a conference organised jointly by the Malta Stock Exchange and the Malta Institute of Management, Mr Gallimore said that one of the EU’s priorities should be fulfilling the goals outlined in the Lisbon Strategy.

Mr Gallimore said it was also of paramount importance to fight terrorism. “Peace and stability are a prerequisite for economic growth. This has been shown from the effects of both world wars,” he said.

Mr Gallimore said that the EU’s economic growth strategy was outlined in the Lisbon Strategy. “After introducing the Euro, the European Union’s ambitious goal was for the union to become the most dynamic and knowledge-based economy in the world by 2010.”

The Strategy’s goal is to have an across-the-board total employment rate of 70 per cent in the whole union, he said. In addition, the Strategy says that by 2010 more than 60 per cent of females have to be employed. “Economic growth depends on employment levels. But that in turn depends on research and development, social cohesion and a flexible labour market,” said Mr Gallimore.

But, he said, the key was to make sure that the benefits of economic growth are shared by all.

“National action plans are presented to the European Commission annually, as Malta has already done this year. EU institutions and national governments must work hard to help in ensuring the Lisbon Strategy goals are met,” said Mr Gallimore.

He quoted European Commission President Romano Prodi as having said that most European leaders do not realise that 2010 is already round the corner and that the “mid-term” goals of the Strategy will not be hit. “European Parliament President Pat Cox has a penchant for putting things simply and, as he said, what we need are less conclusions and more outcomes,” said Mr Gallimore.

He encouraged local SMEs by saying that the EU recognises as a fact that they are the backbone of the economy. “The EU average for business staff levels is six employees. Our competitiveness depends on the success of SMEs. I also think it is of paramount importance to have SMEs involved in the relevant law-making process,” he said.

However, he said it was also up to those in the private sector to snap up the opportunities offered by EU membership. Mr Gallimore concluded: “Growth is a number one priority. But we must not just say it, we must act to achieve our goals.”

Grant Thornton Partner Mark Bugeja said that Maltese businesses will face threats but will also be presented with marvellous opportunities when Malta joins the EU.

“But the biggest problem that SMEs face is accessing finance. In fact, according to a 2002 EU survey, 13 per cent of SMEs felt that tapping finance was a major barrier,” said Mr Bugeja.

He said that the main sources for finance were equity and debt financing. And he also pointed out that short-term finance was more important to SMEs than long-term. Mr Bugeja said that the majority of SMEs had a relationship with just one bank and that 60 per cent of European SMEs had bank facilities of o100,000.

“The reasons for non-approval of credit are normally poor performance, lack of guarantee collateral, past failures and bad management,” he said.

Mr Bugeja said alternatives to bank finance included factoring, leasing, guarantee schemes and mutual guarantee associations. Other speakers at the conference included Silvio Camilleri, Simon Busuttil and Anthony Cardona.