During Malta's negotiations with the European Union, Gozo was given its due importance. In fact, to better understand the island's specific needs and thus be in a position to understand what could and should be done, a study entitled "The Special Needs Assess-ment Study for the Island of Gozo" was carried out with EU funding.
This study gives a clear picture of where Gozo stands today in its economic and social development. It highlights Gozo's specific and structural difficulties and recommends measures as to how these could be addressed. The "Special Needs" study is now the basis for projects and initiatives that Gozo, as part of the national strategy, may implement to further improve the social and economic development of the island.
Government has managed to bring home a significant package for Gozo upon Malta's accession to the EU.
Regional classification
First of all, Gozo is to be classified as an Island Region at NUTS III level. (NUTS: Nomenclature of Territorial Statistical Units). Gozo has been identified as an "island" since it satisfies all criteria accorded by the European Union. It is:
¤ not linked to the mainland by permanent structures (bridge, tunnel, etc.);
¤ distant at least one kilometre from the mainland; and
¤ inhabited by more than 50 permanent residents.
Moreover, it does not host its country's capital city.
The EU includes about 440 islands that satisfy these criteria with an estimated population of about 13.5 million. These 440 islands are altogether grouped in 21 island regions. The size of these island regions varies but they are all much bigger than Gozo.
In fact the two largest regions are Sicily (25,700 km2) and Sardinia (24,200 km2). The smallest three island regions are Madeira (797 km2), Bornholm (588 km2) and the Isle of Wight (380 km2). Other island regions include Corsica (8,679 km2), Crete (8,290 km2), the Canary Islands (7,474 km2) and the Balearic Islands (4,947 km2). Gozo's area is only 67 km2.
Of the 21 island regions mentioned above, 15 are classified at NUTS II and 6 at NUTS III level. Gotland, with an area of 3,140 km2, Bornholm and the Isle of Wight are three of the six island regions at NUTS III level that are single-island regions. The other three are Orkney (a 12-island archipelago measuring 956 km2), Shetlands (a nine-island archipelago measuring 1,468 km2), and the Western Isles (a three-island archipelago measuring 3,061 km2).
There are then eight islands that are classified as NUTS III regions but are an island forming part of a group of islands that are together classified at NUTS II. These groups of NUTS II island regions are then part of another region at NUTS I. This means that whereas Gozo is in the second level of the regional hierarchy of Malta, these eight NUTS III island regions are in the third level of the regional hierarchy of their country.
An example would illustrate the significance of this hierarchical classification. Majorca is a Spanish NUTS III island region with a population of 614,000 and an area of 3,620 km2. Its developmental needs have to be submitted to the NUTS II Balearic Islands Region for consideration, approval and inclusion in the development plan of the Balearics. This in turn will have to go to Madrid for consideration and approval of the national government and then for onward transmission to Brussels, again for consideration and approval if the plan is to be co-financed by the EU.
In Gozo's case, its needs have to be referred only and directly to the national government for onward transmission to Brussels. Its position is in fact very close to the NUTS II island regions.
Finally it is important to note that all the other islands are not classified as a region, either at NUTS II or NUTS III level.
Islands and Community Treaties
Island regions have increasingly been considered important by the EU. The past 10 years have witnessed an increased focus of European laws on the difficulties and problems that islands permanently face in their struggle for socio-economic development.
Island regions were first given recognition in the Treaty of Maastricht in 1992 with the adoption of Article 154 that refers to "the need to link island, landlocked and peripheral regions with the central regions of the Community".
In 1997 the Treaty of Amster-dam in Article 158 referred again to the situation of island regions in relation to economic and social cohesion. It says that "in particular, the Community shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands, including rural areas".
Unfortunately the translation of this article varies from one language to another and a controversy ensued. However, in the same Treaty, Declaration 30 was adopted whereby "The Conference recognises that island regions suffer from structural handicaps linked to their island status, the permanence of which impairs their economic and social development. The Conference accordingly acknowledges that Community legislation must take account of these handicaps and that specific measures may be taken, where justified, in favour of these regions in order to integrate them better into the internal market on fair conditions."
More recently, on the occasion of the Nice Inter-Governmental Conference (2000), the Conclusions of the Presidency recalled that "On the basis of Declaration No 30 annexed to the Treaty of Amsterdam, the European Council confirms the need for specific measures for the benefit of island regions, in accordance with Article 158 of the CET, in view of their structural handicaps which impair their economic and social development, within the limits of the budget resources available."
From the legislation and declarations mentioned here, one can clearly see the increased reference being made and the importance being given to island regions.
As a consequence of the same legislation and declarations, there are good prospects that in the near future a specific NUTS classification will be created for island regions.
Structural funds and other financial instruments
I have already referred above to Article 158 of the Treaty where it is stated that "in order to promote its overall harmonious development, the Community shall develop and pursues its actions leading to the strengthening of its economic and social cohesion. In particular, the Community shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least-favoured region or islands, including rural areas."
Article 159 then provides that the Community shall support the achievement of the above objectives by the action it takes through the Structural Funds and other existing financial instruments.
Article 160 furthermore stipulates that the European Regional Development Fund is intended to help to redress the main regional imbalances in the Community through participation in the development and structural adjustment of regions whose development is lagging behind.
Council Regulation No. 1260/1999 lays down the provisions on how the structural funds and the other existing financial instruments should contribute to the attainment of the treaty's above-stated aims. It established three priority objectives for 2000-2006:
1. promoting the development and structural adjustment of regions whose development is lagging behind;
2. supporting the economic and social conversion of areas facing structural difficulties; and
3. supporting the adaptation and modernisation of education, training and employment policies and systems.
For this period, f195 billion were allocated to the structural funds, 94 per cent of which are voted for these objectives: f135.9 billion have been allocated for Objective One, f22.4 billion for Objective Two and f24 billion for Objective Three.
It is in this context that Gozo's regional status has to be analysed. As long as Malta and Gozo together qualify, as they do at present, for funds under Objective One, Gozo will benefit from the funds earmarked for that objective and that are mainly allocated to regions at NUTS II level.
If Malta and Gozo together would no longer qualify for funds under Objective One and Gozo on its own would also no longer qualify, then Gozo can benefit from funds allocated to Objective Two which focuses in particular on Regions at NUTS III level. Gozo could benefit under this Objective as long as it would still be undergoing socio-economic change in the industrial and services sectors and satisfy the criteria tied to them.
However, it is worth noting here, that during Malta's negotiations with the EU, safeguards were taken so that in the eventuality that Malta and Gozo together develop to the extent that they would no longer qualify for funds under Objective One but the level of development of Gozo on its own would still be below the eligibility threshold, then Gozo could still benefit from these funds.
In fact, a declaration on the "Island Region of Gozo" will be attached to the Accession Treaty. The declaration states that before the EU decides on a new budget - and therefore before it decides on a new allocation of EU funding - Malta will request the Commission to report on the economic and social situation of Gozo.
The report should focus on the disparities in the social and economic development level between Gozo and Malta. The Commission will be asked to propose adequate ways to ensure that the disparities between Gozo and Malta will continue to be reduced and that Gozo continues to integrate into the internal market on fair conditions.
In such a case, the Commission's report on Gozo would assess whether the specific economic situation of the island justifies its continued eligibility, as well as conditions under which it should be eligible.
It has to be stressed here, that according to Article 161 of the Treaty, it is the European Council, acting unanimously, that defines the tasks, priority objectives and the organisation of the Structural Funds and the general rules applicable to them.
Malta will be a member of this Council with the right of one vote like, and equal to, all the other member States. This means that Malta's assent would be needed to have the structural funds mechanism reviewed, approved and implemented for every new programming period. The next programming period will then cover the years 2007-2013 when Malta should be a member of the Council.
It is in this light that the declaration about Gozo gains in importance.
A priority axis
A separate priority of the Single Programming Document entitled "Region Development of Gozo" will deal with Gozo's special needs. This priority is to be based on the Special Needs Assessment Study I referred to earlier and will include the financial tables for Gozo's priorities, projects and programmes.
The Single Programming Document is an analysis of the socio-economic situation prepared by the member state in the light of the three Objectives to be attained through the support of the structural funds. It includes the priority needs for attaining those objectives, together with the strategy, the planned action priorities, their specific goals and the related indicative financial resources. It is appraised and approved by the Commission in agreement with the member state.
Other than Gozo's priority, Malta's Single Programming Document has individualised five other priorities, all thematic, that represent the pillars of the social and economic development of our country. These are: strategic investment, the productive sector, human resource development, rural development and fishing and technical assistance. It is worth noting that in none of the other member states' Single Programming Documents exists a geographically or regionally based priority. All priorities are based on socio-economic themes. Gozo's case is an exception.
Gozo will thus be allocated EU funds specifically for the priorities, projects and initiatives necessary for its socio-economic development. Funds will be allocated for the different sectors such as: roads infrastructure, educational and vocational training institutions, inter-island transport, tourism, crafts and human resource development.
Regional Project Committee
A Regional Project Committee will be set up to provide input into the programming process concerning Gozo's development as well as to select and implement projects and measures for Gozo. This will ensure that Gozitans will be directly involved in the development process of their island. The committee will be set up and chaired by the Ministry for Gozo.
The committee will put into practice the principle of subsidiarity in favour of Gozo. It will be made up of representatives of the social and economic partners such as the Gozo Tourism Association, the Gozo Business Chamber, Gozitan co-operatives covering agriculture, fisheries and crafts, as well as other voluntary non-governmental organisations.
I am confident that the Gozitans, knowing all this, will realise that Malta's membership of the EU will benefit their island's further socio-economic development. EU membership can hardly be a choice if we sincerely want what is best for us. It is a positive experience that has been tried and tested for years by 15 countries and is looked upon with enthusiasm by yet another 10 acceding countries, Malta included. It is now our individual, but at the same time, collective choice to be part of this European family. Let us all, together, on the basis of informed, rational and conscious decisions, determine our country's future.