Cabinet committee to monitor Lisbon Strategy

Prime Minister Lawrence Gonzi said yesterday that in the coming weeks he will be proposing a change in the scope and composition of the Competitiveness Cabinet Committee so that it will take charge of the monitoring and national coordination of the implementation of the Lisbon Strategy.

Speaking to the press at the conclusion of the EU summit in Brussels, the Prime Minister said that now that the Lisbon Strategy has been relaunched, Malta will do its utmost to set its targets until 2010 and reach them.

"All EU leaders agreed on the need to have the best performing economy in the world and to do this we all have to work together in reaching our targets. My government is taking this strategy very seriously and in the coming weeks I will be proposing to the Cabinet that Malta's progress and targets with regard to the Lisbon Strategy will be strictly monitored by the Competitiveness Cabinet Committee. I will also be proposing changes to the composition of this committee."

At present, the Competitiveness Cabinet Committee is chaired by the Prime Minister himself, who took over from former Foreign Affairs Minister John Dalli following his resignation. The committee includes four ministers, three parliamentary secretaries, four permanent secretaries and a number of chairmen of public authorities. The Prime Minister indicated a new chairman of the committee could be appointed.

Following two days of discussions, the 25 EU leaders yesterday concluded talks on how to re-energise Europe's sluggish economy, pledging to continue efforts to boost liberalisation. The strategy drawn five years ago, known as the Lisbon Strategy, aims to make the EU the world's most dynamic knowledge-based economy by 2010. It sets the ambitious target of achieving three per cent economic growth in the EU and the creation of 20 million jobs by 2010.

Dr Gonzi said Malta fully agreed with the presidency conclusions and recalled that his government has already taken steps to start implementing the strategy. Two national action plans on employment and social inclusion have already been drawn up were being implemented. These will be beefed up to reflect the changes made at the summit and other plans, on other sectors of the economy, will be drawn up shortly. He said the strategy fits perfectly in the government's plans to re-engineer Malta's economy.

Recalling his appointment as Prime Minister a year ago yesterday, Dr Gonzi said his government is trying to implement massive changes in sectors which have been paralysed for 40 years.

"We are trying to change mentalities, monopolistic practices and anti-competitive practices which have been with us for the last 40 years without ever being changed. But this is the main mission of my government. If we want to develop our economy, we need to change radically and become more competitive. This is the only way forward."

As an example, Dr Gonzi referred to the liberalisation of various services at Malta's seaports stating that these were essential for a competitive manufacturing industry. He declared that this reform, although difficult, will be carried forward, including the liberalisation of cargo handling services.

Dr Gonzi spoke about the proposed services directive - a matter of controversy between member states - and expressed his satisfaction that the directive will now be watered down. Malta is opposing this directive maintaining it can harm its economy.