At an event held yesterday, business-representative entity the Malta Business Bureau indicated that 89% of Maltese businesses are better off since joining the Single Market. This figure emerged from a study launched on the impact of the European Single Market on Maltese businesses. The study, carried out by Grant Thornton, also identifies the barriers and bottlenecks that exist, while proposing a way forward.

An MBB delegation-led by MBB President Simon De Cesare-presented this study to Minister for the Economy, Investment and Small Business Chris Cardona. The discussion started with a presentation of the study objectives and findings by MBB President.

Mr De Cesare explained, "Despite the obvious benefits to Malta and its businesses, we are seeing Maltese businesses struggling to exploit the full potential of the Single Market. Businesses are continuously faced with challenges stemming from excessive administrative procedures to legislative barriers when accessing markets across borders."

"For example, 96% of businesses indicated that they wish to see simplification in EU services regulation, providing evidence to a perception that has existed among business-representative organisations across Europe," he continued.

The study also shows that businesses are concerned about the implementation of EU legislation at a national level, with 35% showing dissatisfaction about ineffective enforcement of EU law in Malta, particularly with regards to market surveillance, and another 26% complaining about the inefficiency when it comes to implementation.

Minister Cardona stated, "Studies and feedback from our shareholders that allow us to gain a comprehensive understanding of how Maltese businesses have benefitted within the Single Market are very valuable for us. We welcome the suggestions made by the MBB and after we will assess how we can incorporate them to better address the needs of our business community."

On the same day, the MBB hosted a Business Seminar on 'Doing Business in the EU'. High-level business representatives from the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association shared their experience, views and ideas on doing business in the EU, while discussing how things can be made better for businesses.

The full publication can be viewed from www.mbb.org.mt

 

Key Findings

• An overwhelming 89% of businesses are better off since Malta joined the Single Market.
• Between the traditionally strong manufacturing, wholesale and retail sectors, an average of 20% are not better off since Malta joined the Single Market. They, along with other sectors of the economy, cite various challenges, such as barriers to trade, administrative burden, issues relating to legislation, amongst others. Compliance costs to sell goods and services to other Member states remain an issue, with overly complex procedures still in place, and a lack of information, and sometimes willingness from national governments in being open for businesses from companies based in other member states. Testing, certification, labelling, approval, authorisation procedures are fragmented and do not function efficiently.
• 96% of businesses wish to see simplification in services regulation. Services regulation in the EU remains fragmented and overly complex, with the requisite procedures proving to be a hindrance and duplicate information often being required by different authorities.
• 35% have shown discontent about ineffective enforcement of EU law in Malta, in particular with regards to market surveillance. 26% have indicated that they are not happy with inefficient implementation of EU rules. EU Directives should be transposed to the least possible extent, with deviation only occurring in order to apply the directive in question to the domestic context.

Key Recommendations

• Market Surveillance authorities should have the capacity to effectively monitor and enforce rules set at EU and national level. It is crucial that all operators operate on a fair level playing field, by ensuring that standards such as labelling, and language restrictions are adhered to.
• The EU should endeavour to improve the effectiveness of tools intended to help businesses and citizens, such as SOLVIT. SOLVIT can have tremendous potential if used correctly, and if given the right importance by institutions themselves. To ensure effectiveness of the tool, we propose giving an economic operator the possibility to request the SOLVIT Home Centre to ask the Commission to give an opinion in a particular case, rather than letting the Home Centre decide this unilaterally. This gives more power to operators seeking the help of SOLVIT, thus increasing trust and confidence in the service. Such tools should also be better marketed in order to increase awareness and usability. Our survey indicates that only 15% are aware of SOLVIT.

Our research has shown that the consultative process in Malta can be improved with regards to its timeliness and effectiveness throughout the entire lifecycle of proposed EU rules, from conception stage to the post-facto evaluation stage. We believe the effect of this can be extremely beneficial for all parties, with Government getting an early and accurate snapshot of the positions of stakeholders, which can then be communicated in a timely manner in the EU fora.