"One has to have a strategic and peripheral vision. A strategic vision is the ability to look ahead. Peripheral vision is the ability to look around. Both are important."  - Carly Fiorina (American businesswoman and political figure)     

Living on the periphery is nothing new. We are the smallest nation-state within the EU and live right on the edge of the southernmost confines of the EU's geophysical landmass. We are a group of islands with a unique ecosystem facing challenges, particularly related to our geographical and socio-economical status. These challenges affect all the fundamental dimensions of sustainable development and Gozo even more so because of its double insularity and the way it has been treated until a few years ago by previous administrations.

Gozo in the shadows

Way back in 2002, formal negotiations with the European Commission regarding EU funding were concluded and the dye was cast. Lost in the euphoria of the moment with promises of heaven on earth, the then Nationalist Government saw Gozo as a mere shadow on its peripheral vision. So much so that a mere 10% of the state’s EU allocation was set aside for Gozo and we Gozitans went on suffering the consequences of that decision to this very day.

Truth needs to be told. That allocation was based on the overall size of the population of Malta and Gozo together – 7% -  to which was added another 3% to round up the figure. These funds were supposed to be enough for Gozo to reach the levels of development enjoyed by mainland Malta.

The irony was that the island’s landmass is 27% that of Malta, it has a coastal perimeter of 31% and an agricultural area of around 36%. All three areas were in dire need of regeneration and were left out of the equation and so Gozo lagged further behind. Back in 2002, Gozo's development level was at 58% whilst in Malta, it was 82%. Development on the island reached an all-time low in 2015 at 54% when at the time Malta's was up to 96% average.

Tunnel vision

The tunnel vision of 2002 has meant the loss of precious funds needed for the island to improve the geo-physical infrastructure. Whilst it is true that way back in 2003, annexed to the Treaty of Accession we were regaled with a flashy and verbose Declaration that Gozo is an Island-Region – we were still stuck in the limbo created by a lack of foresight of the 2002 administration.

It was dutiful for us upon taking office in 2013 that the distribution ratio needed a feasible but indispensable change. As part of the Labour cabinet since 2014, I worked ceaselessly and managed to secure cabinet approval for more and more funds. Then I pushed for a further 2% increase of EU funds’ allocation so that Gozo will now have an allocation of 12% of the country’s EU funds. For some, that increase may appear minimal, but in real terms its significance turns out to be most beneficial for different long-awaited projects on the island. 

‘De minimis’ state aid

In July, as Chairperson of the Permanent Committee on Gozo Affairs, I invited the Gozo Business Chamber and the Permanent Secretary at the Ministry for Foreign and European Affairs to discuss the way forward for the 2021 – 2027 EU funds allocated to Malta. Of note were the discussions concerning the De Minimis (meaning 'of low amounts') state aid rules that apply to small islands. In a few words, the De Minimis State Aid rules prohibit governments from helping private enterprise beyond a cut-off point which right now is of 200,000 Euros staggered over a period of three years. It is being argued that this rule should not apply to small islands such as Gozo and that flexibility of the De Minimis rule should extend to all EU islands facing hardships particularly because of their insularity.

The Gozo Business Chamber holds the Presidency of the Insular Chambers of Commerce of the Europen Union. It has put forward a proposal on a European Level as regards the De Minimis Rule.  State aid for all islands across the EU should be increased from 200,000 to 500,000 Euros to individual commercial entity that qualifies through strict rules, with the amount tapered over a period of seven years. This is because enterprises operating on islands such as Gozo have a different cost structure than enterprises operating from the mainland. Obvious hurdles are the transport of raw materials and travelling between the islands and abroad.  By increasing the De Minimis State Aid concessions, enterprises will be encouraged to innovate and diversify their product and eventually rely less on state aid.

From shadows to light

The lack of peripheral vision will take time to be reversed. However, I believe that there is always light at the end of the tunnel.  I have never accepted that Gozo should be made to accept and survive with leftovers. I have and will always be confident that, with hard work, determination, and the collaboration of all stakeholders, Gozo will continue to move in the right direction. Irrespective of the pittance allocated to us Gozitans way back in 2002, the last few years have shown that with good management of funds and sheer determination to succeed against all odds, we were able to reverse our downward trend and achieve higher levels that were unheard of for a whole decade.

This is all thanks to the fact that a Labour Government since 2013, from the very beginning, showed with tangible measures that Gozo is not a mere shadow in the periphery of its vision.  Gone is the pre-2013 period when Gozo was just an afterthought. For us within Labour, Gozo and Gozitans are indeed a very important link in the socio-economical chain - and having been given the right support - we have turned out to become net contributors to the national economy.  Indeed, we have a story to tell where facts cannot be forgotten - or worse still - denied!