They should also be able to join the EU citizens queues rather than the non-EU citizens one.
Sources at MIA told this paper that embarkation cards for EU citizens entering Malta have been removed some days ago, with the result that a plane-load of people is now passing through in just a couple of minutes.
The source told The Malta Independent on Sunday that the problem now is that, since people do not have a long distance to walk between the arrivals gate and the baggage reclaim area, (as is the usual case elsewhere) they are finding the delays until the luggage arrives intolerably long.
No change in Maltese currency
The Maltese lira still is the only legal tender currency and the Central Bank of Malta will continue to set monetary policy in Malta.
However, upon accession, the Central Bank of Malta became part of the European System of Central Banks (ESCB), which is composed of the European Central Bank (ECB) and the national central banks of all Member States.
Malta cannot adopt the euro until the European Central Bank admits new members to the euro area from January 2007.
This means that one can hold all types of unlimited financial assets in foreign currencies but such holdings will continue to be considered as foreign exchange holdings and their value in Maltese liri will remain subject to the normal exchange rate fluctuations.
There are now no restrictions on external transactions with EU residents as well as those in the European Economic Area (Iceland, Liechenstein and Norway). The last vestiges of exchange controls in this respect were lifted on 19 April.
However a few controls have remained in force regarding transactions with residents of countries that are neither EU or EEA members, the Central Bank said.
For Malta to adopt the euro, it will have to meet a number of economic and financial conditions known as the Maastricht criteria. These include:
· An inflation rate not exceeding that of the three best-performing Member States by more than 1.5 per cent (the reference value stood at 2.6 per cent in February 2004)
· A annual government deficit not exceeding three per cent of GDP
· An annual government debt not exceeding 60 per cent of GDP
· Staying for two years in the ERM II exchange rate mechanism without devaluing against the currency of any other Member State
· A nominal long-term interest rate not more than two per cent higher than that of the three best-performing Member States in terms of inflation (the reference value stood at 6.1 per cent in February 2004)
A direct comparison between the latest figures for the Maastricht Criteria for Malta and the EU would yield the following results:
Malta EU
Inflation Rate 2.1 per cent 2.6 per cent
Deficit to GDP ratio 9.7 per cent 3 per cent
(6.5 per cent excluding one-off
negative effect of restructuring of shipyards)
Debt to GDP ratio 72 per cent 60 per cent
Long-term interest rate 4.9 per cent 6.1 per cent
Financial sources told The Malta Independent on Sunday that Malta is well positioned to meet the inflation rate and long-term interest rate criteria.
Also, no major problems are envisaged as regards Malta participation in ERM II since the euro already has a 70 per cent share in the Maltese currency basket and switching to a complete peg with the Euro as required by ERM II should not be problematic.
However, Malta does not yet fulfil the criteria concerning sustainable public finances (government deficit and government debt).
Levies out, tariffs in, VAT up
A five per cent VAT rate has been introduced on confectionery and other edible items, medical accessories and printed matter as well as a VAT rate of 18 per cent on medical equipment.
Levies on goods originating from the EU have now been removed completely. Thus, for example, items such as pasta and processed tomato products from Italy have gone down in price.
On the other hand, a common external tariff of 35 per cent on goods originating from non-EU member States has been introduced. Therefore, the price of items such as lamb, sugar and wheat, which are mostly imported from third countries, is expected to rise.
VAT on imported goods will only be charged once now – at the point of sale, that is, by the retailer – rather than at the point of entry, that is, by the importer, who would then pass that charge to the retailer, who then charges the consumer.
Moreover, since Malta has become part of the EU single market, there will be no VAT charged by the supplier’s Member State when business is carried out between two “taxable persons” from two different Member States.
VAT will only be charged at point of sale in the Member State – in Malta, it will be the VAT Department which collects it.
To make this system work, Maltese retailers have added an MT prefix to their current eight-digit VAT number.
Buying and selling of property in Malta
For Maltese residents, the situation as regards the property market has not changed so much since 1f May. However, there are certain details that will apply as from May with regard to foreign residents buying property in Malta. These are outlined as follows:
For definition purposes, the EU includes the 25 member States and Iceland, Liechenstein and Norway who are part of the European Economic Area agreement. Residents from any one of these countries are treated as EU citizens when it comes to buying property in Malta.
EU citizens who wish to purchase a secondary home in Malta will still require a permit. This permit will continue to be granted automatically if certain conditions are fulfilled. But they still cannot buy more than one property.
EU citizens who settle in Malta and have a regular residence permit and wish to buy a property as their primary residence can do so without a permit. Again, however, they cannot buy more than one property. EU citizens who have been resident in Malta for more than five years will be able to buy a second or more property in Malta. Additionally, EU citizens who conduct business in Malta will be able to buy property that is related to their business without a permit.
Restrictions such as the limit of Lm30,000 on masoinettes and flats and Lm50,000 on other property remain in force while the rights of Maltese citizens are not affected. However, Maltese citizens who have not lived in Malta for five years will be treated like other EU citizens when it comes to property buying and selling.
Additionally there will be no restrictions for EU citizens buying in designated areas which include the Manoel Island/Tigne’, Portomaso and Cottonera Waterfront Projects. EU citizens may also rent their properties without restriction, providing they obtain the relevant Letting Licence from the Malta Tourism Authority.
EU citizens’ rights
Your rights
Every citizen of an EU Member State is automatically an EU citizen. As an EU citizen, you have the right to:
* move freely throughout the EU
* live, study, work and do business in other Member States
* vote and run as a candidate in European elections in the Member State in which you are living
* vote and run as a candidate in local elections in the Member State in which you are living
* petition the European Parliament if your rights as citizens are infringed
* complain to the EU Ombudsman if you have a grievance against an EU institution or body
* request assistance from the embassy of any EU Member State if you get into difficulty abroad in a country where your country has no embassy
* access EU documents, subject to certain restrictions
* write to the EU in Maltese or English, and get a response in that language
* equal treatment; EU citizens must not be discriminated against on grounds of nationality.
Further information
Europe Direct is a freephone helpline for citizens who need practical information on their rights when they are travelling in the EU or working in another Member State. You can call the number 00 800 6 7 8 9 10 11 free of charge from anywhere in the EU.
The European Commission Representation has detailed information on citizens' rights, and has a legal advisor who provides information and responds to practical queries from citizens on their rights under EU law.
Citizens should be provided with information on the E 111 form which - with certain restrictions - entitles you to medical treatment if you have an accident or become ill in other EU Member States.
Enforcing your rights
Do you have a problem enforcing your rights?
At times EU citizens may run into difficulties in exercising or asserting their rights. Problems may arise, for example, concerning voting rights, car registration, recognition of qualifications, cross-border transfer of welfare entitlements, customs and taxation issues, establishment of a company, or setting oneself up as self-employed in another Member State. In such instances, if your rights are infringed, there are a number of places where you can seek assistance.
* The Petitions Committee of the European Parliament examines complaints by EU citizens about breaches or infringements of EU law. Some of the most common issues of complaint are the environment, social affairs, free movement, recognition of qualifications and discrimination. Petitions can be sent online, or in the form of a letter, setting out your complaint. Copies of any supporting or background documents should also be enclosed. Your petition should be addressed to the President of the European Parliament, L - 2929 Luxembourg.
* Parliament elects an EU Ombudsman who examines complaints by EU citizens against EU institutions and bodies. If you wish to complain to the European Ombudsman, you should write to him or fill out the online complaint form, setting out clearly who you are, which EU institution or body you are complaining against and the grounds for your complaint. A complaint must be made within two years of the date when you got to know the facts on which your complaint is based, and you must already have contacted the institution or body concerned, for example by a letter. The European Ombudsman cannot deal with complaints about national or local authorities, since such complaints fall within the remit of the national Ombudsmen in EU member States.
* Solvit is a Europe-wide service run by the European Commission to help citizens who encounter obstacles in accessing the single market.
* The European Consumer Information Centre provides consumers with advice and assistance in the event of problems relating to cross-border shopping.