A minister and a parliamentary secretary, speaking at two different EU meetings, expressed concern and disapproval at proposed cuts in cohesion funds as discussions about the next financing period started in earnest.

Minister for European Affairs and Equality Helena Dalli, whilst participating in the discussions on the Multi-Annual Financial Framework at the General Affairs Council, highlighted the importance of cohesion policy as a measure to leverage investment and to enhance trade across the EU bloc.

The General Affairs Council has been convened primarily to take stock of the latest state of play of negotiations on the MFF post-2020.

"Cohesion policy deserves greater importance through appropriate allocation, not the proposed reductions", Minister Dalli remarked. The European Commission, in its MFF proposal, is suggesting funding reductions to the cohesion policy programme.  Cohesion policy is considered vital for regions and member states of the European Union in their social and economic development.

Minister Dalli noted that despite GDP being a good measurement, it is crucial to consider other peculiarities prevalent in regions and in member states which the GDP measurement does not take into account. Minister Dalli stressed that cohesion policy is still relevant even for those member states which have reached a certain level of economic development.

Parliamentary secretary Aaron Farrugia was more forthright. The Parliamentary Secretary for European Funds and Social Dialogue said that the EU funds which Malta will receive post-2020 should consolidate and sustain, not halt or hinder, the economic growth which Malta has experienced in recent years.

During a conference attended by ministers responsible for cohesion policy and European funds, he insisted that the initial proposal does not consolidate the economic growth of the country.

In this context, he expressed his disapproval of the cuts in cohesion funds which the European Commission had put forward in its initial proposal. 

Aaron Farrugia said that despite Malta's unprecedented economic growth, the country is nonetheless facing a number of challenges in the areas of environment, education, and innovation. He emphasised the need to prioritise the social element in the context of cohesion policy post-2020, such as accessibility and affordable accommodation, particularly in light of new realities such as an ageing population. 

The Parliamentary Secretary was participating in a high-level conference with a number of ministers from other member states and the European Commissioner Gunther Oettinger, where wide discussions on the future of cohesion policy took place. He said that such meetings should provide an opportunity for member states to meet regularly and share expertise and best practises, as well as their experiences and ideas for the benefit of all citizens.

Cohesion policy should be discussed within the context of the future of Europe, and the vision of this future is that of a social Europe. It is also necessary for cohesion policy to continue to consolidate the fast-growing Maltese economy. 

In his speech, the Parliamentary Secretary explained that Malta is making continuous use of cohesion funds for a diverse number of projects and initiatives which directly impact Maltese and Gozitan families, such as the oncology centre, the two industrial parks in Ta' Qali and Xewkija, €50 million for businesses, €40 for vulnerable persons, the one tablet per child scheme, and the restoration of fortifications including that of St Angelo and Ċittadella, the latter being a finalist in this year's Regio Stars Awards.

Aaron Farrugia spoke of the need for more flexibility in the allocation of funds, as well as the need for clear aims and considerations that go beyond a country's GDP. The level of education, climate, the environment, and the level of innovation are all factors which should be considered in this regard, in order to ensure that EU funds make their way to citizens who need it most and in areas where they are also most needed. 

On the role of cohesion policy in innovation, the Parliamentary Secretary said that this should be based on a vision which goes beyond 2020, and should focus on elements which strengthen competitiveness of the EU on the global level. "Malta agrees that innovation is one of the key drivers for economic growth and that cohesion policy can contribute towards furthering development in this area. In the area of innovation, Malta has experienced good progress, however, further investment is required to address the gaps to further capitalise on the opportunities that this sector can offer", the Parliamentary Secretary stated.