The European Commissioner for Regional Development, Danuta Hubner, was non-committal yesterday when speaking about Malta's bid to secure the highest level of funding in the next EU budget.
Following discussions she had with Prime Minister Lawrence Gonzi in Brussels, it appeared evident that Malta is facing an uphill struggle to become eligible for Objective 1 funds between 2007 and 2013.
Dr Gonzi put on a brave front, telling the press following the meeting he was still optimistic that ultimately "a solution will be found".
He said Malta believed it had the right arguments and "as the EU has found solutions fitting Malta's particular problems in the past, we hope that with our persuasion, we will together find another solution".
The Prime Minister is in Brussels on a diplomatic blitz to make clear Malta's case for receiving the highest possible level of funding. Yesterday he met five EU commissioners and today is scheduled to meet Commission President Jose Manuel Durao Barroso.
He said Malta will be keeping up the pressure on all fronts in order to achieve its goals.
The next EU budget is still under discussion among member states and talks may drag on into next year.
During a joint news conference, Ms Hubner did not commit herself on any of Malta's issues over the budget, saying only that the Commission "will certainly look into the issues raised by the Prime Minister".
The Commission's proposals on the budget are based on statistics for the countries' GDP average between 2000-2002, as the preliminary 2001-2003 figures - which would qualify Malta for full funding ñ have not yet been produced for all the member states.
Commissioner Hubner did not shift her position on the question of statistics. She said the 2000-2002 figures will be finalised by the end of March "and then we will have a clearer picture of Malta's position".
"It might be the case that Malta will be statistically affected but it is too early to judge," she said.
When it was pointed out that the 2000-2 statistics would not solve Malta's problem, she replied: "Well it depends on how one looks at the problem."
Government sources yesterday said Malta would lose an estimated €200 million (Lm87 million) over seven years if it continued to be considered as being outside the Objective 1 category.
According to a study by the European Parliament, which is based on European Commission workings, the Commission's current proposal on structural and cohesion funding will translate into an appropriation for Malta of €754 million (Lm328 million).
Government sources, however, claimed the Commission's workings are not accurate and according to the government's own calculations, the proposal would translate into only €680 million.
The 2000-2003 GDP figures, which put Malta just above the threshold of 75 per cent of the EU average, place the country into a "phasing out" category for Objective One funds.
The Prime Minister yesterday argued in his meetings that it is not acceptable for Malta to be phased out from full funding possibilities before it has even had the chance to be phased in.
The government says the preliminary 2001-3 figures, showing a GDP average for Malta of 74.8 per cent, would give it Objective 1 status.
Dr Gonzi yesterday also had meetings with Commissioners Gunter Verheugen, Joe Borg, Lazlo Kovacs and Joachim Alminia.
Besides meeting Mr Barroso, today he will also take part in a meeting of EU finance ministers.