We are living in an ever-shrinking world where, with each passing day, the process of globalisation and regionalisation is rapidly furthering interdependence between the economies of Asia, Europe and the Americas. In such a changing international system all countries of the world must find ways of improving their competitiveness if they are to further their prosperity.

Through the implementation of the National Reform Programme, which was adopted towards the end of last year, the government is carrying out a strategic agenda that will ensure that Malta will continue to improve its performance. As we all know, the European Union itself and its immediate neighbourhood are going through a process of rapid transformation. As a partner country, during the past years Malta has demonstrated that it is capable of adapting to the changing geopolitical and geoeconomic climate that we find ourselves in. This is a process that we must continue.

As the EU Commission acknowledged recently, Malta’s NRP is the outcome of a very substantial public consultation process, with the five strategic guidelines selected, being chosen after a lengthy marathon of interaction between the public and private sector. As a listening government, this style of continuous public consultation is a policy the government will continue to adopt throughout implementation of the NRP.

The conclusions arrived at by those analysing our NRP at the Commission are positive. This is a compliment to those who worked on it locally. At the same time, this positive outcome puts further responsibilities on us. We have to ensure that what we planned to perform will be achieved in the coming years. The five strategic guidelines of the NRP, namely: sustainability of public finances; competitiveness; employment; education and training; and environmental sustainability, were selected as priority target areas. Focusing on improving these areas will ensure that Malta’s economy is better geared towards the increasing challenge of competition around us.

I am especially pleased by the fact that there is a consensus in our country, that taking the necessary measures to create a more vibrant economy is something we are carrying out because it is in our interest to do so, and not because someone else is telling us to follow such a path. I believe that the fact that we have arrived at such a stage of political maturity is already a sign of our being able to adapt to the ever-changing situation around us in the Euro-Med area and beyond.

While being aware that the NRP adopted is an ambitious one, the government has full confidence that the people of Malta and Gozo are able to rise to the challenge before us. As a result of EU membership, Malta is already taking full advantage of the EU’s support and guidance. Carrying out this process of restructuring and reform is a process that would have been much more difficult if not impossible had Malta opted to do so on a unilateral basis. On the other hand, sharing our experiences with our EU counterparts and cooperating closely with them is already facilitating the task of transforming our economy into a dynamic and competitive knowledge driven one.

There are two principal areas of importance that will impact significantly on the extent to which Malta will succeed in sharpening its competitive edge.

Firstly, benchmarking Malta in the EU-25 is a fundamental process that we must become accustomed to if we are to reap the benefits of regional integration in Europe. Harmonising and raising standards of productivity, and improving the marketing dimension of our exports is essential if we are to create a conducive context within which economic growth and job creation will take place.

The specific themes of female entrepreneurship, research and development and innovation, deploying ICT in business, and increasing labour supply through a labour market reform are precisely the areas where we need to work together if we are to translate the Lisbon goals into action.

With reference to the research and development sector, which is being highly prioritised, one must point out that out of the three per cent of GDP that member states should assign for this specific area referred to in the Lisbon Agenda, two per cent is supposed to be spent by the private sector. It is important to note that so far there is no indication that the targeted spending is being achieved. It is our intention that during this year the realistic information related to spending in this area will be recorded much better than ever before. In this way we will be in a position to assess spending on R & D in a more realistic way.

It is also important to address business needs and concerns through a process of national reform. While achieving the goals outlined in the NRP will be our main objective, this will not be done without regular consultation with society at large. The government is committed to remain close to the business sector and looks forward to continuously working together with all stakeholders of the Maltese business sector during the different stages of implementation of the NRP.

As a sign of our commitment to carry out the reform agenda, the Maltese government has already adopted numerous measures of the NRP in this year’s budget. These include liberalisation in various sectors and port reform. It also includes building a business and financial environment that is more attractive to global and regional investors.

While recognising that a large part of the NRP concentrates on development of our physical infrastructure, the government firmly believes that Malta’s competitiveness can only be sustained if resources are also committed to the further development of our human resources. It is for this reason that “education and training” is one of the strategic goals that we will dedicate utmost attention to throughout our continuous process of reform.

All citizens must be given the chance to improve their aptitude through a system of life-long education and training, and we will endeavour to build upon the already good reputation and success Malta has in this regard.

Censu Galea is Competitiveness and Communications Minister