Malta was given two months yesterday to remove Enemalta’s monopoly on the importation, storage and wholesale trade of petroleum products, and was warned that failure to comply within the timeframe would land Malta before the European Courts of Justice.
The matter, the European Commission said yesterday, was urgent and it gave Malta two months “to confirm to the Commission that it has implemented the measures required to fulfil its obligations under the Accession Treaty”.
The European Commission’s demand for Malta to liberalise the fuel sector took the form of a reasoned opinion, the second of three steps in the EC’s legal process available against member states – the third being a referral to the European Courts of Justice.
Malta had been obliged, as part of its EU Accession Treaty, to ensure that petroleum products could be traded through a licensing system by 1 January 2006. Discussions to thrash out details of a way forward between the Malta Resources Authority and the private sector, particularly with the Chamber for Small and Medium Enterprises (GRTU), have, however, been continually hampered.
The sector’s liberalisation includes the import and internal distribution of petrol, diesel, LRP and gas.
Speaking yesterday, EU Competition Commissioner Neelie Kroes was less than complimentary in Malta’s respect.
“Malta is maintaining
discriminatory measures in favour of the commercial state monopoly which stop any potential new entrants from getting into the wholesale petroleum market,” she commented.
“On accession, Malta committed itself to adapt its rules. 18 months after this should have been done, it is clearly now urgent that the necessary changes are made.”
Article 31 of the EC Treaty stipulates that discrimination between nationals of member states with regard to commercial state monopolies is forbidden. The Article also obliges member states to adjust any state monopolies of a commercial character in order to ensure there is no discrimination between nationals of a country regarding the conditions under which goods are bought and sold.
The EC observed that while Malta had been obliged to have a licensing system up and running by 1 January 2006, “the information available to the Commission indicates that no trading licences have been issued and Enemalta Corporation is still the only company authorised to import, store and supply at the wholesale level petroleum for the national fuel market”.
The Commission does note that legislative measures to bring Malta in line with its obligations “are reported to be under discussion” but adds that such measures have so far not yet been adopted.
Malta received its first warning in October 2006, in the form of a formal notice, but, according to the Commission, “Malta’s reply did not contain any new concrete elements, but merely pointed to the ongoing legislative process and internal consultations.”
On Wednesday, the European Commission decided to take Malta before the European Court of Justice over the travel tax, which the commission says is discriminatory.