Maltese soldiers to benefit from EU redundancies fund

Malta is insisting with Brussels the island's special economic circumstances should be given due importance during ongoing negotiations on a new EU fund designed to address redundancies resulting from globalisation.

Government sources told The Times that although the latest amendments by the European Parliament to the legislation setting up the European Globalisation Fund (EGF) are a step in the right direction, they are still considered insufficient and "too far off" vis-à-vis Malta's needs. The issue was again raised during recent talks in Brussels between officials from Malta's Permanent Representation, the EU presidency and the European Commission.

The EGF, proposed by the Commission last year as an answer to massive redundancies resulting from globalisation, will provide up to €500 million annually to help workers made redundant reintegrate into the labour market due to changes in global trade patterns.

Originally, the Commission proposed that member states should become eligible only if there is a minimum of 1,000 redundancies in one given company. This threshold was amended last week by the European Parliament and brought down to a minimum of 500. However, according to the Maltese authorities, this is still very high and will mean that Maltese workers won't effectively benefit from the fund.

The government is arguing that there should be a very low threshold or no threshold at all if the EU really wants to treat small economies, like Malta's, on an equal footing with the other member states.

"Even if the threshold is 300 workers, it is still not enough for us. Effectively, on a country comparison, this will mean the equivalent of 1,800 in Slovenia, 4,800 in Finland, 49,500 in France and almost 73,000 in Germany. This apart from the fact that for Malta redundancies involving fewer than even 300 workers could have a major impact on the national economy," government sources explained.

Malta's position was also made clear during this week's meeting of the Committee of Permanent Representatives in Brussels.

The fund is expected to come into effect as soon as the legislative process is over and the new regulations enter into force. The Finnish EU presidency has already said it would like to adopt a common position on this fund by the beginning of December. However, this will first need the approval of member states at European Council level.

The first reading vote at the European Parliament level is expected to be taken next week in Strasbourg.