2014 marks the beginning of a new programming period and consequently the determination of how and where over €1bn in EU funding and co-financing will be invested in Malta over the next seven years. The new programming period will also usher in new challenges that, if tackled wisely, will generate opportunities and economic growth, the ripples of which will reach almost every sector of society.
Numerous infrastructural projects that focused on generating economic growth as well as socio-economic projects that aimed at improving employability and job opportunities are the hallmarks of the current Cohesion Policy (2007-2013) which comes to an end this December. The Cohesion Policy groups together the EU’s European Regional Development Fund (ERDF) and the European Social Fund (ESF), and is complemented by the Cohesion Fund. The projects and initiatives implemented under the Cohesion Policy, be they capital or social of nature, are testament to the potential offered by the respective financial instruments and to the achievements of Malta’s first 10 years of EU membership.
At the moment we are in the last quarter of 2013 which, for for all intents and purposes, is essentially a transition period. While stakeholders are eagerly awaiting detailed information on the new funding opportunities, the current information on possible funding priorities for businesses that will be available from next year is quite limited. However, a consultation document, Programming of European Funds for Malta 2014-2020, released in July this year by the Ministry for European Affairs and Implementation of the Electoral Manifesto and the Parliamentary Secretariat for the EU Presidency 2017 and EU Funds helps shed some light on those areas deemed important for investment.
Three main funding priorities that have been highlighted for funding within the next programming period are:
(i) Fostering competitiveness through innovation and the creation of a business-friendly environment
This priority will be directing funding towards the further development of certain key economic activities, namely value added manufacturing such as: aviation; agriculture and fisheries; financial services and ICT; tourism and research and development. This list is not exhaustive and other sectors may also benefit from financial assistance, either directly or indirectly. Projects undertaken within this priority will seek to enhance the competitiveness of these sectors and may be initiated through both private and public entities.
(ii) Sustaining an environmentally-friendly and resource-efficient economy
This priority targets rural and urban environment and envisions investment in interventions that will assist in the promotion of low-carbon, resource efficiency, renewable energy and other environmentally-friendly measures. The priority is intended to achieve a broadened utilisation of renewable energy generation and the implementation of energy efficiency measures.
Transport, coupled with environmentally efficient agriculture and aquaculture practices, has also been given a special mention within this particular priority area. Links with tourism and how this particular economic sector may perform its activities through greener methods have been highlighted.
(iii) Creating opportunities through investment in human capital and improving health and well-being
This priority will focus on training initiatives aimed at enhancing the employability of Maltese workers as well as matching current market needs in terms of skills required. This priority also sees to the provision of training opportunities for vulnerable individuals in order to enhance their employability. Addressing the employability of aging workers, as well as maintaining a healthy workforce has also been listed as a priority in this regard.
As can be seen, these three priorities will have direct and indirect implications on local businesses, ranging from facilitating the recruitment of qualified personnel to subsidised equipment and more. Furthermore, certain economic sectors have already been earmarked as crucial for the growth of Malta’s economy over the next seven years.
Additional information about the funding opportunities will be released throughout 2014 and a more detailed breakdown of priority areas will be presented in the Operational Programmes which will determine how funding under the ERDF and the ESF are disbursed. With regards to ESF and ERDF, from now on it will be in the interest of potential EU funding beneficiaries to follow closely the information released regularly by the Planning and Priorities Coordination Department (PPCD) to be aware of any developments in the field of EU funding for 2014-2020.
Meusac plans to hold information sessions in the beginning of next year with the aim of disseminating information on the new EU funding opportunities (2014-2020).
More information will be available on Meusac’s website www.meusac.gov.mt or on Meusac’s facebook page in due course.