It has long been mentioned and expected for quite some time. After the discussions on the current EU financial framework covering 2007-2013 were closed, and the pre-
allocated amount for Malta was declared, there was a level of expectancy for the funds to start flowing in. Much work was done to hand to the European Commission the set of priorities that Malta wanted to work on. Malta was, in fact, the first member state to do so and it is now again the first to have completed the negotiations.
On 26 June, the Commission approved the European Regional Development Fund (ERDF) and the cohesion fund operational programme for the period, entitled Investing in Competitiveness for a Better Quality of Life. The total assistance from these two sources amounts to EUR728 million (Lm312.53 million), with EUR444 million (Lm190.61 million) from the ERDF and EUR284 million (Lm121.92 million) from the Cohesion Fund. These amounts account for the absolute majority of circa EUR857 million (Lm367.91 million) targeted as Community support for Malta for the period 2007-2013.
The funds will be invested in ways that will increase our country’s competitiveness in productive sectors, as well as making Malta more attractive on the environmental, transport and energy fronts. Ultimately the action taken needs to be sustainable – the improvements must be ongoing and capable of creating added value for Malta’s economic and social fabric.
A number of indicators have been set, and are to be targeted by the actions which will be implemented. Research and information technology are expected to be further enhanced in order to reach expenditure equivalent to 0.75 per cent of GDP on Research, Technological Development and Innovation (RTDI) – a 0.45 per cent increase over 2004 levels.
Another indicator set is that related to tourism, aiming at an increase of one per cent in annual tourism earnings till 2013. In the case of the manufacturing industry, the target is for an increase in exports to a figure of 3.2 per cent annual growth by 2013, from 2.7 per cent for this year. Directly created jobs are expected to reach 1,400 full-time posts by the end of the period.
These targets, and others, are grounded on specific areas on which action will be channelled. Seven priorities, covered by both the ERDF and the Cohesion Fund, have been negotiated and approved. The first priority is geared towards research and innovation and strengthening enterprises, also through help with access to credit. The new ICT Department at the University will be supported by the ERDF.
The second priority deals with sustainable tourism. This is an issue that is being taken seriously by the European Union. A few weeks ago, a consultation exercise for stakeholders was undertaken. In Malta’s case, tourism contributes an important part of our total gross domestic product and a number of organisations have already shown their intentions of working further in this field. The funds provided in recent years should be further enhanced, as 2007 should witness more developments related to our cultural and natural heritage, as well as other actions, again specifically supported by the ERDF.
In line with a number of transport-related projects that are currently underway, the Cohesion Fund (under the third priority) will be providing assistance in the ports and major roads, including better traffic management.
A lot of work is expected on the environmental front. Under the fourth priority, the ERDF will tackle wastewater treatment and renewable energy sources, as well as making it possible for Malta to attain the aims of the revised Large Combustion Plant Directive – which targets power stations and other industrial processes. Such action should lead to controlling emissions of sulphur dioxide, nitrogen oxides and dust.
The Cohesion Fund, on the other hand, will support activity related to waste treatment, landfill rehabilitation and the separation of waste at household level. Interestingly, action with regard to water re-use and adaptation to climate change, with specific concern on extreme events, are also being considered. The Cohesion Fund in this case will be utilised under the fifth priority.
The sixth priority is collectively targeted at urban regeneration and the quality of life. It is expected to include urban regeneration programmes in the harbour areas and emphasis on some services, including e-health. The seventh priority will be particularly useful to the administration as it caters for technical assistance intended to implement the various actions that will be conducted during the programming period.
The Operational Programme related to the European Social Fund, entitled Empowering People for More Jobs and a Better Quality of Life, was adopted on 22 June.
The number of projects expected to start rolling in the coming years is substantial, and the above provides a very general indication. The work carried out so far, which has also involved public consultations, will be increased significantly.
Interested stakeholders have also been invited to participate in an upcoming public seminar organised by the Planning and Priorities Coordination Division (PPCD) within the Office of the Prime Minister. The PPCD is the managing authority on these programmes. Registrations are open until tomorrow.
Julian Micallef is Consultation Coordinator at Forum Malta fl-Ewropa