As the hangovers and strains of Roger Waters’ Ça Ira faded on the morning of 1 May 2004, after one of the biggest parties the islands have seen in recent memory, Malta was left to deal with the realities of EU membership – would it live up to what had been promised by the pro-Europe camp, or would the somewhat gloomier scenario depicted by the eurosceptics materialise?
Now, two years down the road, opinions are still divided. Writing in today’s feature, Prime Minister Lawrence Gonzi explains: “The first two years of Malta’s membership in the European Union were characterised by the quest for the highest standards, relevance in international relations, added value that has attracted investment, consolidation of the country’s finances in line with EU criteria, effective participation in decision-making at European level and political consensus on the national front concerning Malta’s place in the Union.”
Dr Gonzi adds that while Malta is still on a learning curve in terms of being an EU member, “two years from now, the effect of EU membership would definitely become more tangible in all spheres to the benefit of one and all”.
Opposition deputy leader Charles Mangion, on the other hand, says the most prevalent sentiment is that Malta’s membership has failed to bring about the vaunted benefits promised during the referendum and general election campaigns of 2004.
He adds: “The present sense of disillusionment that set in following membership is a dangerous sentiment because we now need to look forward and make the best out of membership.
“The future success of our EU membership will continue to depend on the effort of each and every one of us to perform to the best of our ability and also on the competence of the government of the day.”
Alternattiva Demokratika chairman Harry Vassallo, meanwhile, cites the fact that EU institutions are charged with monitoring the implementation of commitments taken on by the government as a major advantage that Maltese appear to appreciate.
However, he adds: “Apart from the regrettable quality of discussion on EU accession and the unnecessary resistance and bitterness it created, my major concern is that the government which championed EU accession currently drives directly contrary to the spirit of EU membership, making a mockery of consultation requirements in all sectors.”
There can be little doubt that, in terms of structural funding, Malta has done well for itself, but perhaps not as well as had been hypothesised by those campaigning for a “yes” referendum vote.
Apart from what it has received to date, Malta was recently granted E805 million in structural funding, most likely the single largest injection of foreign capital the country will have seen, through the EU’s budget allocations for 2007-2013.
In the great membership debate that raged, ad nauseam, over the years leading up to Malta’s eventual accession, the question of funding, rightly, was given a great deal importance, but what about the intangibles, the indirect benefits derived from membership?
Maltese Member of European Parliament Simon Busuttil, speaking to The Malta Independent in an interview to be published shortly, is adamant that EU funding is by no means the be all and end all of membership.
“EU membership is not just about EU money, it is much more than that, and it is very regrettable that people in Malta have been recipients of this incomplete picture,” Dr Busuttil comments.
“I think that funding should not be the first on the list of reasons for joining the EU. Of course, it is good that it is there, but even countries such as Austria, Finland and Sweden, which knew they would be net contributors to the EU, signed up for membership.
“For instance, as citizens I would like to think that one of the greatest advantages of membership is that since then, civil rights in Malta have dramatically increased – Where before membership, when you had an issue with your government, the government had the last say and you had no other remedy.
“I think the balance of power between citizens and government has been re-dimensioned. Today, on rights with an EU dimension, the voice of the citizen vis-à-vis the government is much, much greater. Suffice it to say that the European ombudsman, on a pro rata basis, the greatest number of complaints that he receives is from Maltese. Just for that I think EU membership is something which we all should have voted for – it is increasing our civil rights, and this is something that cannot be quantified in monetary terms.
“Also, if you look at the point of view of territory, we once had rights in a territory within an area of 316 square kilometres, now we have rights on a continental territory. We tend to take these things for granted. I’m pretty certain that even though statistics show that continued support for EU membership is not as high as it should be, I suppose that if you ask the people if they would like to leave the EU, an overwhelming majority would say ‘no way’.”
One of the strongest arguments tabled by the eurosceptics in the lead up to Malta’s referendum on membership, and during the run-up to the following general election that sealed Malta’s future as an EU member, was that the county stood to lose its sovereignty by signing on to a 25-nation bloc of, mostly, far larger countries with considerably more clout.
But Dr Busuttil begs to differ.
“Prior to membership,” he explains, “I used to argue that, being a small country, we would essentially be giving up some sovereignty, while at the same time sharing in the joint sovereignty of the EU. This, on balance, would mean Malta would win more sovereignty than it gave up – by sharing in the joint sovereignty of countries that are, by far, larger than ours.”
This was the textbook argument for membership, but now that Dr Busuttil has been active in the European parliament for some two years now, he feels that the result was far greater than he had first anticipated.
“Now that I’m living it, I think that Malta’s influence was actually underestimated and is even bigger than I thought it would be. I always like to keep a sense of perspective, I don’t think that we joined the EU to change Europe or the world, but we are trying to give our fair contribution.
“I think that our influence and contribution, sitting around the table with the other 24 other countries, was even greater than I thought it would be. This is a point that really struck me over the last two years, that you feel that being part of the club is so much better than being outside and you keep saying to yourself ‘how could we have stayed out?’ I say this to myself regularly and on different occasions.”
PM Lawrence Gonzi
The first two years of Malta’s membership in the European Union were characterised by the quest for the highest standards, relevance in international relations, added value that has attracted investment, consolidation of the country’s finances in line with EU criteria, effective participation in decision-making at European level and political consensus on the national front concerning Malta’s place in the Union.
The Maltese people joined the EU with the understanding that standards across the board would improve to a level that is enjoyed in the long-established EU member states. People want, and deserve nothing but the best. It is the government’s policy to meet this challenge with vigour, persistence and determination. The upkeep of roads, cleanliness, embellishment of urban areas and the countryside and restoration of historical places and sites are just a few examples of the government’s determination to meet people’s expectations for better standards in everything.
EU accession has empowered the Maltese public to stand for their rights even at European level. It has been my government’s long standing policy to decentralise power and EU membership has enhanced this policy, even if it has meant more pressure on the government and public service to deliver efficiently and effectively.
The public service is going through a silent revolution in order to meet the challenges of EU membership in the decision-making process. It is providing the necessary backup for the government to present its position on each and every piece of draft EU legislation. These past two years, Malta has proved for itself that in the EU there is a genuine effort by all to reach compromise so that no member state would feel isolated or ignored.
In the negotiations on the draft Constitutional Treaty, Malta managed to secure a minimum of six seats in the European Parliament, the formal inclusion of tourism as one of the EU policies, the possibility of further EU funding once an island state is no longer under Objective One status and to keep abortion out of Maltese legislation, to mention a few. Malta’s particular demands during the talks on the EU budget for 2007-2013 were given weight and most of them were accepted to take into account the country’s particular size and population density. Malta got E805 million for the next seven years. Malta also managed to push illegal immigration high on the EU’s agenda. In the EU no member state is ever alone and during the past two years Malta has found allies on different issues.
The first two years of accession have made Malta more relevant in international scene. Accession has given Malta that added value and opportunity of being a bridge between third countries and the rest of the European Union. The multi-million investment of SmartCity@Malta is just one instance where EU membership has made all the difference.
Participation in EU educational programmes continued at a fast pace and thousands of Maltese have already benefited from these exchange opportunities, placing Malta with the highest participation per capita among the EU-25. Hundreds of farmers are benefiting from EU subsidies.
The first two years of EU membership have brought with them a dramatic change in local politics: Malta now enjoys political consensus on its foreign policy. All major political forces are now working hard to help the Maltese make the best of EU membership.
The high turnout for the first European elections in June 2004 (the third highest in the EU-25), the ongoing debate on EU-related issues on all the media and the quest for more accessibility to funding opportunities are a living testimony of how much the Maltese people are still very much interested in EU affairs. The five Maltese Members of the European Parliament are among the busiest in the EU trying to represent Malta’s interests in this unique Parliament and at the same time keeping in touch with the electorate on a regular basis. The same can be said on the Maltese representatives in the two EU advisory committees: the Economic and Social Committee and the Committee of the Regions.
Malta is still on a learning curve. In the coming two years we want to consolidate consultation with Civil Society on draft EU legislation through Forum Malta fl-Ewropa. The government wants to strengthen the country’s vocation in the Mediterranean region as a bridge between North Africa and the EU. We shall continue strengthening our lobbying at EU level to get more topics on the EU agenda that are of relevance to Malta and the rest of the Community. In the next two years we shall see the completion of more EU-funded projects in the field of infrastructure, protection of the environment and enhancement of the tourist product.
We also have the challenge to present projects on time so as to use every single euro from the allocation of E805 million under the EU budget for 2007-2013. Joining the euro by January 1, 2008 is also top priority on Government’s agenda. Fixing the Maltese lira to the euro has already given us dividends in credit ratings. The government believes that the introduction of the euro will further enhance the country’s stability and credibility on the world scene.
Two years from now, the effect of EU membership would definitely become more tangible in all spheres to the benefit of one and all.
Gozo Minister Giovanna Debono
If you travel to Gozo these days, particularly if you visit areas such as Dwejra or Ta’ Pinu, you cannot but face major road works that are presently underway on one of the island’s main thoroughfares – the Victoria-San Lawrenz stretch.
The main road has been closed, off with workers seen on any working day – busily building new retaining walls after widening works were completed. Service culverts are now being laid while other impressive foundation works are being done for the whole three kilometre stretch, from Victoria to San Lawrenz square to be reconstructed to EU standards. Traffic is now being diverted to an alternative route via Zebbug and Ghasri, with signposts having been installed at frequent intervals to direct vehicles from Victoria to the north-western villages of the island.
European Union funds, that make up for 75 per cent of the investment needed on this arterial road, are being directed towards upgrading the basic infrastructure on the island of Gozo and towards improving the “product Gozo” so important for tourism and investment purposes, after government allocated 10 per cent of the whole package of funds that Malta, as a country, obtained for the 2004-2006 budgetary period.
In just a few weeks’ time, the Victoria-San Lawrenz stretch will be complemented with works on the Mgarr-Xewkija stretch, while works at the previous ITS centre in Qala will resume.
In the meantime, nine state-of-the-art showcases were installed at the Museum of Archaeology at the Citadel to permanently house a collection of unique prehistoric artefacts unearthed at the Gozo Stone Circle in Xaghra while several courses and schemes, as wide-ranging in areas of study from agriculture to business studies to crafts, hospitality and e-commerce have been introduced.
Works have also started on the Waste Water Treatment Plant that is being carried out in Gozo – also thanks to European Union funds – but this time, through pre-accession funds.
Other projects, carried out through the European Union’s Structural Funds, are in the pipeline and more will be done in the coming weeks and months thanks to millions of euros that are being directed specifically towards Gozo. A project intended to promote diving tourism in Gozo is also currently underway, as well as the project to sustain and promote crafts as a means for sustainable careers in Gozo.
Two years of EU membership have passed but the long hours that many officers spent filling out forms, preparing tendering documents and finalising all the preparatory work are now bearing fruit with such a major overhaul currently underway on the island’s infrastructure, educational and business opportunities – all eventually reflecting on the performance of Gozo’s economy in the years to come.
AD chairman Harry Vassallo
The list of institutional and infrastructural start-ups consequent to EU accession forms a long list largely hidden from public view. It is unquestionably true that many benefits can be expected from the changes this has brought about in very many sectors. The very existence of recourse to EU institutions charged with monitoring the implementation of commitments taken on by our government is itself a major advantage which Maltese citizens appear to appreciate. We seem to hold a European record of recourse to the EU Ombudsman.
There are also serious hiccups in various sectors because of the one-size-fits-all stance of the EU and of our negotiators’ failure to pay sufficient attention to the warnings of stakeholders during the negotiation proceedings.
Complaints within the agriculture sector are justified and the concerns expressed by the importers of pharmaceuticals on the price and availability of medicines because of the way government has implemented EU regulations are justified. It is not enough that we have joined the EU. We need to participate also by making our case cogently and persistently in order to avoid such justified complaints which the EU institutions had no intention of causing. It is up to our representatives to make our case.
Apart from the regrettable quality of discussions on EU accession and the unnecessary resistance and bitterness it created, my major concern is that the government which championed EU accession currently drives directly contrary to the spirit of EU membership making a mockery of consultation requirements in all sectors.
The deep and abiding disappointment following the wide if inevitably superficial stakeholder consultation exercise in the accession process is a major cost and handicap to seizing what opportunities membership provides.
The process has been subjected to the government’s re-election plans and no other consideration such as the long term effect of this disappointment of legitimate expectations is given any weight. This failure to respond adequately to the change which membership should have brought delays not only the political development all had the right to expect but also economic, social and cultural development to which the country rightfully aspires.
Urban Development and Roads Minister Jesmond Mugliett
EU membership has, over the past two years, presented an unprecedented opportunity to realise the government’s vision of having a state-of-the art road network on the Maltese Islands.
The financing for road projects under the European Union’s Cohesion Fund and European Regional Development Fund is, in fact, an integral and crucial part of the Urban Development and Roads Ministry’s strategy for the upgrading of our arterial road network. There are three such projects in hand at the moment namely, Phase III of the reconstruction of Hal Far Road, the upgrading of Civil Aviation Avenue in Luqa and the upgrading of the road leading from Victoria to San Lawrenz in Gozo.
The start of work on the upgrading of the St Paul’s Bay Bypass is imminent while the upgrading of the road leading from Mgarr to Ghajnsielem and the repair of the Manwel Dimech Viaducts on Regional Road will start in a few weeks’ time. The tender for the reconstruction of the road leading from Victoria to Xlendi will be issued later this year.
The total investment in these projects surpasses E26 million.
Now that the current EU financial period is approaching its end, we are speeding up the planning work on the projects that will be co-financed under the 2007- 2013 financial period.
We are in the process of concluding the mandatory public consultation process on 13 projects along Malta’s TEN-T road network that would be eligible for funding under the Cohesion Fund. Our aim is to have the tenders for the first of these out this summer.
That would put us in an excellent position to start benefiting from this extraordinary opportunities that this new funding stream presents as soon as the new financial period comes into effect on 1 January 2007.
MLP Deputy Leader Charles Mangion
Two years from Malta becoming a full member of the European Union, the most prevalent sentiment is that membership has so far not brought about the high profile benefits which the government promised so unrealistically to the Maltese electorate to win over support for membership. The present sense of disillusionment that set in following membership is a dangerous sentiment because we now need to look forward and make the best out of membership.
It is also a sad fact that during the past two years, Malta has generally underperformed at the economic level when compared to the other states that joined the EU at the same time as us.
Our rate of economic growth, for instance, is lower than that registered by most of the new member states. Equally worrying is the fact that our inflation is significantly higher than the EU average. This of course has less to do with EU membership, than with the poor management of the economy by the present government.
Our rush to join the euro will also increase the hardships at a time when our economy is not performing well. Other member states were more pragmatic and set more realistic targets for this important event, giving a chance to their economies to strengthen before assuming the onerous responsibilities of membership in the Eurozone area.
The Labour Party, with its three Members of European Parliament, is exploiting every opportunity provided by our representation in this important political forum to influence decisions which have an impact on issues which affect us directly. Our MEPs have passed through a very steep learning curve and, through networking with their colleagues in the European Socialist Group, are beginning to make a difference on the impact which decisions taken in Brussels have on our country.
The future success of our membership of the EU will continue to depend on the effort of each and every one of us to perform to the best of our ability and also on the competence of the government of the day.
Investment, Industry and Information Technology Minister Austin Gatt
The first of May was the ideal day for Malta to start its European adventure. May Day has for many years been an occasion to recognise the importance of productive work in our lives. Work, though of course not work alone, gives us fulfilment in our lives. It adds to our sense of purpose and enriches us as individuals because it gives us an opportunity to contribute to our community.
Our membership in the European Union catalysed the process of change that our economy is undergoing. In a way change is imposed on us by the circumstances around us. Globalisation and the new forces of global competition are not within our control: they are barely in anyone’s control in reality. Our choice was to prepare ourselves for this change, to face it and make the most of it.
Two years on, membership of the EU is delivering on the most important promise that was made before we joined: new investment, new jobs and a new relevance in the global economy. We no longer aspire; we are managing to carve our niche in the global regional economy with a powerful reputation as a locus for knowledge-based activities.
Membership in the EU does not mean that this sort of investment becomes automatic. It was never meant to be easy. It does mean, however, that all barriers of isolation and of unpredictability that our island country often imposed on itself have been demolished for good. It also means that we are now on the European scorecard which objectively measures our achievements. Often, especially in the sectors related to the information society, Malta dispels prejudices about its size by securing consistently Europe-first ratings in its records.
This comparative element allows us to swiftly identify our weaknesses but also to promote, aided by the objective indicators of European statistics, just what a viable destination we are for foreign investment.
SmartCity is but the largest in a list of new investment expansions we have secured partly because of our EU membership. Others deserve a mention:
Inspectra started out barely a year ago as a small company in our incubation centre, inspecting raw materials and finished goods. It now employs 90 people and provides services to an international client base.
In June 2005, Arrow Pharma decided to expand its Malta operation breaking through old barriers of the local pharmaceutical industry. Another pharmaceutical company, Siegfried, also decided to expand, introducing three new products a year to its Malta operations.
De la Rue Currency and Security Print has been in Malta for a few years, but in the last few months it has almost doubled its workforce and trebled its turnover.
HSBC has decided to relocate an international call centre to Malta creating 350 new jobs.These are but a sample of the many other examples of new jobs created in very few months. We are experiencing something of a job boom and the prospects for our country have never looked better.
The first two years of EU membership are behind us now. It is the future that we can look forward to.