"No third chance for Malta if Maltese vote 'no'"

Luxembourg Prime Minister Jean Claude Juncker yesterday said there would be no third chance for Malta to join the EU if the Maltese voted 'no' in next year's referendum.

"After withdrawing its application in 1996, there will no third time for Malta. This is not a game. This is a serious job for Malta and for Europe. This is not for children."

Speaking at a joint news conference with Prime Minister Eddie Fenech Adami, Mr Juncker stressed there would be no EU enlargement if the Irish people voted against the Nice Treaty for the second time in their referendum this month. This was evidence, he said, of the influence of small countries in the EU.

Mr Juncker yesterday also became the first prime minister among the 15 member states to publicly declare that he supported Malta's request to the EU to retain zero VAT rating on food and medicines as long as other member states had similar arrangements. He said that Malta's demands were feasible.

This issue of taxation remains one of the most problematic areas for Malta to settle in the membership talks.

Speaking at a public meeting organised by the Malta-EU Information Centre later in the evening, Mr Juncker also said Malta should have six MEPs, the same as Luxembourg - and not five as it was allocated in the Nice Treaty.

He was also blunt when he spoke on the distinction between membership and staying out: "There is no comparison between the opportunities that Malta will have as an EU member and if it decides to stay out with the status of an interested observer. One is in or one is out. It is a clear choice."

He also said there was no "Europe à la carte" outside membership.

Mr Juncker had a hectic day yesterday with one meeting after another. He met President Guido de Marco, Labour leader Alfred Sant and Finance Minister John Dalli in his capacity as finance minister. He also toured Malta Freeport.

The focal point of his visit was the Auberge de Castille where he met Dr Fenech Adami.

Mr Juncker and Dr Fenech Adami also presided over the signing of an agreement between the two countries on stronger cooperation in areas related to young people. The agreement was signed by parliamentary secretary Jesmond Mugliett and Minister Marie-Josee Jacobs. Mr Juncker recalled that back in 1997, when the EU launched the present enlargement process under his chairmanship (Luxembourg had the EU rotating presidency at that time), he was sad to see Malta missing from this important process.

"Now that Malta is back on track, the performance and the adjustment is inspiring. The Maltese are very committed to this process and getting back on track has been very successful indeed."

Mr Juncker said one of the greatest benefits of EU membership for Malta would be sitting round a table where decisions are taken.

"Before the European Community was set up, Luxembourg was always the victim of our neighbours' decisions.

"Today they have to ask what Luxembourg's position is and we have a say in the decision-making process. We have a vote just like all the other members."

He said even Switzerland had to follow the developments that take place in the EU and adopt 80 per cent of European legislation.

"It will be better if they sit round the table where decisions that directly affect them are taken. The same applies to Malta.

"Luxembourg, as a partner in international affairs, would no longer exist if it were not an EU member.

"To give you an example, as a prime minister of 400,000 people, this year I already had the opportunity to make official visits to the US, Russia and China. I am sure that if we were not a EU member, this would not happen. But they treat the EU as a whole.... they do not make a distinction. If Malta were not an active EU applicant, your prime minister wouldn't be abroad so often."

Mr Juncker also attributed Luxembourg's economic success to EU membership.

"We have the highest GDP per capita - not only in the EU but worldwide. We couldn't have achieved this performance without membership."

Commenting on the feasibility of the Labour Party's Switzerland of the Mediterranean/partnership proposals, Mr Juncker made it very clear he had no intention of interfering in the domestic debate.

He did say, however, that Malta had a strategic location in Europe, which made it possible to develop stronger ties with the EU than other countries, such as Russia or Ukraine.

"Malta has a better chance of being a member of the EU for one easily understandable reason. It can be a gateway for investors coming from outside Europe. Malta is strategically located and can attract investors towards the European continent. I see this as a real opportunity."

Dr Fenech Adami said his meeting with Mr Juncker focused on areas of negotiations that had not yet been completed. He said Mr Juncker was very appreciative of Malta's position on the remaining negotiation issues and that Luxembourg would be assisting Malta in this regard.

Dr Fenech Adami described the two countries' bilateral and political relations as excellent.

On commercial and economic relations, however, Dr Fenech Adami said there was room for improvement.