Ongoing discussions over the next EU budget should lead Malta to benefit from the biggest ever appropriation of foreign funds in its history.
According to a technical study requested by the European Parliament's committee on Regional Development, the European Commission's proposal of appropriation of the structural and cohesion funds for the next budget, will translate into an appropriation to Malta of €754 million (Lm328 million) for the seven-year period between 2007 and 2013.
This will mean that Malta will be benefiting from an allocation of €108 million a year. This money will be tied up to specific projects in various sectors, including the infrastructural, economic and social sectors.
The Government has already announced the roads projects that will be funded from this allocation after 2006.
The study on behalf of the European Parliament was conducted by the prestigious French think-thank Notre Europe and which is headed by ex-European Trade Commissioner Pascal Lamy and founded by ex-Commission President Jacques Delors. In providing statistics, it was quoting the European Commission.
However, the quoted figure is by no means final and it could change, depending on certain developments.
For instance, the Commission's proposal on the total amount of funding may be rejected by the member states.
The Commission is suggesting a total budget for Cohesion Policy (EU funding) of €336.1 billion for 2007-2013. However this is still being opposed by net contributors such as Germany, France and the UK, which are arguing that the total budget should be reduced. If this happens, Malta's appropriation will be reduced.
On the other hand, although already high, the Commission's proposal considers Malta as falling outside Objective One status and therefore not eligible for the highest level of funding. This means that if Malta gets its way on its Objective One status, the €754 million figure could be higher still.
Last week Maltese representatives on both the Council of Ministers and in the European Parliament objected to Malta being considered outside Objective One. They pointed out that preliminary data for the period 2001-2003 show that Malta would, in fact, qualify as an 'Objective 1' country and therefore qualify for the highest EU funding possible.
The €754 million figure refers only to Malta's allocation under the so-called EU Cohesion Policy, more popularly known as EU funds. It does not take into account other sources of financial benefits for Malta available under other EU policies, such as the Common Agricultural Policy and various EU programmes, such as the educational and research programmes.
More importantly, it is a gross figure, since it does not take into account Malta's contribution to the EU budget, which is still to be determined.
The next EU Budget will have to be agreed by all member states to be approved. The Commission is insisting that an agreement be reached by June. However, sources close to the Commission told The Sunday Times that this is "highly improbable".
Malta's concerns on the next EU budget and the financial allocation for Malta will take centre stage in a meeting between Prime Minister Lawrence Gonzi and Commission President Jose Manuel Durao Barroso scheduled for February 16 in Brussels.