Malta and the EU's Regional Policy

The FOI in collaboration with the Malta Chamber of Commerce, through the EU Help Desk of the Malta Business Bureau and with the Regional Policy Directorate in the Office of the Prime Minister, organised an information seminar for members on the EU's Regional Policy and the role of the private sector.

The seminar, chaired by EU Help Desk co-ordinator Simon L. Barberi, was held last Thursday at the Exchange Buildings in Valletta.

Jaume Garau, Pre-Accession Advisor at the Regional Policy Directorate (RPD), who is based in the Office of the Prime Minister, opened the meeting by introducing and explaining the EU's Regional Policy and its main programmes and instruments. Particular emphasis was given to the benefits Malta will enjoy as an Objective 1 region.

He also discussed possible initiatives under Structural and Cohesion Funds. Mr Garau described the private sector's role in the Balearic Islands Single Programming Document (SPD), indicating when private operators would be direct beneficiaries of some measures of the SPD, including grants to SMEs for participating at international fairs or to achieve international standards, like ISO standards. Here he also emphasised the importance of simplified procedures for SMEs to apply for funds.

Mr Garau stressed that the importance of using the allotted funds is particularly crucial in supporting requests for future funding in forthcoming EU payment periods. He explained that if the funding currently allotted to Malta is not fully utilised by Malta, then Malta would find great difficulty in proving to the EU Commission that the country would need the same amount (or a higher level) of funding in future allotments.

Marlene Bonnici, head of the RPD, then gave an overview of the RPD's role and work to date within the framework of the EU's Regional Policy and Malta's EU accession preparations. Details on Malta's draft proposal of the priority axes of its SPD, were outlined as follows:

- Strengthening competitiveness and the development of the productive sector (which would consist of, for example, support to SMEs, tourism and infrastructure);
- Strategic investments (incorporating infrastructural projects in the areas of environment, transport and water quality);
- Developing people (in special areas of employability, gender equality, life-long learning and social inclusion);
- Rural development and fisheries;
- Special needs for Gozo; and
- Technical assistance.

Ms Bonnici also gave indications of what Government would be proposing on the allotment of funds across the different priority axes. The RPD official confirmed that Malta would qualify for Cohesion funds, which would finance major infrastructural projects in the areas of environment and transport. Ms Bonnici also explained that the private sector's involvement in the process was mainly through the Malta Council for Economic and Social Development (MCESD).

Questions were asked on: funding directed to private industry; TAIEX funding; EIB loans; co-financing possibilities; stakeholders' representation beyond MCESD; timing of the Single Programming Document; the 'minimus' clause; pilot study for rural measures; and the structure of the Inter-Ministerial Committee.