Yesterday’s announcement that Malta has obtained €2.25 billion in EU funds from the newly struck deal between all EU countries is a most welcome announcement.

Good news is not easy to come by nowadays, given all that the country has and is passing through, in relation to the virus, murder investigations and corruption scandals.

This doubled upon the already impressive amount that former Prime Minister Lawrence Gonzi had brought for Malta for the period between 2013 and 2020, which had stood at €1.1 billion.

Indeed, Malta’s final allocation was far more than was originally proposed by the EU Commission. This deal must also keep in mind the UK’s withdrawal from the EU, making the situation even more impressive.

Now Malta will of course have to give its contribution to the EU budget, which amounts to €1.16bn from its own resources, but this still leaves a net balance of around €1.04bn. This is still a substantial sum.

EU funds have been an important factor in Malta moving forward over the past years. From infrastructure projects to offering many forms of support, the funds are a part of the reason for Malta’s economic success.

Read More: Malta allocated €2.25 billion in EU funds from new deal

These funds could indeed help springboard Malta out of the economic impact of the Covid-19 pandemic over the coming years and could help counter any medium-term negative effects.

Over the past months, there were concerns that with the change in government ministers coming at such a crucial time, it might have spelt disaster for Malta’s negotiations, however thankfully this did not happen.

Indeed, Malta’s economic success over the past years could also have played against the country achieving a good package. After all, shouldn’t those doing well carry more of the burden? But the Prime Minister did right when arguing that Malta has unique circumstances. For one, Malta is not connected to mainland Europe by land, thus meaning extra costs. In addition, Malta also has infrastructural issues given the overpopulation problem, which incidentally the government should seriously consider tackling through alternatives, rather than just widening roads inviting more car use.

The government said that 10% of the allocation under Cohesion Policy and Agriculture will be earmarked for Gozo. This will be most welcome, given that Gozitans face even more problems that people who live in Malta, given connectivity issues and the brain drain from Malta’s sister island, where many choose to move to Malta due to work reasons.

One particular area which has been struggling over the past years is the agricultural sector.

Malta obtained €191 million – which the government said is €53 million (or 38%) more than in 2014-2020 for agriculture. This particular sector has not seen many youths enter, and thus financial scheme support to bolster it will hopefully help in this regard. The Coronavirus thought us the importance of locally grown produce after all. Malta should not be so dependent on food importation.

Malta should make sure to make the best use of the funds that will not be allocated to the country and focus on long-term aims not short term ones.