August is traditionally the holiday month for EU institutions and activity, in general, is greatly subdued. Of course, this is not to say that everything is at a standstill. If I may take the European Court of Auditors as an example, August is when the verification of the consolidated final accounts of the EU budget takes place.

At least for some auditors, it is quite a busy time. However, it is true that most EU personnel are away on holiday for parts of August and few meetings or other activities are scheduled during the month.

In contrast, everything accelerates again in September, which is always a very busy month, with a packed calendar. Again quoting the European Court of Auditors as an example, September is when the Court finalises and approves its annual report, which is then translated into the 20 plus official languages for presentation to the European Parliament in November.

Likewise, September is an eventful month for the other institutions, with many activities on their agenda. One of these is the European Forum on Cohesion, which will be held in Brussels, on September 27 and 28.

The forum is organised by the European Commission and its principal objective is to discuss the 'Fourth Report on Economic and Social Cohesion', which was adopted and published by the European Commission at the end of May.

This report provides an update on the progress made to achieve economic, social and territorial cohesion, and on the manner in which the EU and member states' policies have contributed to it.

It also looks at the new challenges, which must be adequately taken into account, when setting out regional development goals and policies. Issues include underlying demographic trends, development patterns that could accentuate the threat of social exclusion, energy requirements and the implications of climate change.

In presenting this report, Danuta Hubner, Commissioner for Regional Policy, remarked: "Cohesion policy is all about providing opportunities to all EU citizens wherever they live, by reducing disparities between regions, by mobilising unused potential, by concentrating resources on growth-generating investments.

"The EU faces many challenges in the period ahead: a population which will start to decline by around 2020 and is already declining in many regions, increased economic pressure from global competitors, increased energy prices and climate change. Europe must respond to these challenges.

"To do this we need to involve all the regions and people in generating wealth, jobs and growth." And this is precisely the raison d'être of EU regional policy; namely, to involve and enable all regions to play an active part in the required development drive.

The report provides an assessment, by region, of the economic and social situation and trends in the enlarged EU. This analysis shows that disparities in income and employment across the EU have narrowed over the past ten years but significant 'deficits' still exist between the least well off regions and the rest.

This will require a long-term effort to redress. The report includes an evaluation of the impact of EU cohesion policy, which it judges to have been positive. It covers national as well as community policies, since the two need to reinforce one another.

In particular, it is stated that the potential exists for a more effective exploitation of the positive synergies that could be developed between various policy facets, such as R&D and innovation, competition and state aid. The report also puts forward a number of questions, which need to be addressed in deliberating the future of cohesion policy.

Of course, the subject of cohesion policy, present and future, is of particular relevance for Malta. It is worthwhile to note that Malta was the first member state to have finalised, with the Commission, its operational programmes for the 2007-2013 programming period.

More specifically: on June 22, the Commission approved Malta's operational programme for funding under the European Social Fund - entitled 'Empowering people for more jobs and a better quality of life' and, on June 26, it approved Malta's programme for funding under the European Regional Development Fund (ERDF) and the Cohesion Fund (CF) - entitled 'Investing in Competitiveness for a better quality of life'.

The anticipated Community assistance under the ERDF and CF amounts to €728 million.

These operational programmes have been formulated to support Malta's principal development priorities, as identified in its National Strategic Reference Framework, previously submitted to the Commission.

The aim is to boost the competitiveness of productive activities in Malta as well as to enhance the attractiveness of the Maltese Islands in terms of environmental quality and by improving physical infrastructure in general and transport facilities in particular.

Reference is also made to the objective of expanding research and information technology capacities, through such initiatives as the 'Smart City' project, also as a means of attracting additional foreign direct investment to Malta.

Otherwise stated, the principal objectives of the ERDF and CF funded programme are "to sustain a growing, knowledge-based and competitive economy and to improve Malta's attractiveness and quality of life".

Details of this operational programme have already been covered in the Maltese media; so I will restrict myself here to a very brief summary of its declared priorities: 1) enhancing knowledge and innovation; 2) promoting sustainable tourism; 3) developing further the infrastructure (especially ports and roads); 4) upgrading services of general economic interest (especially energy production, including renewable sources and waste water treatment); 5) safeguarding the environment (especially solid waste recycling, treatment and disposal) and 6) urban regeneration (especially the Grand Harbour area) and improving the quality of life.

As in all EU Structural Fund programmes, the EU money allocated under the different funds mentioned will be reinforced by a local input under the co-financing requirement.

However, over and above the crucial benefit to be derived directly from the considerable amount of additional funds that will be made available for investment in Malta during the next seven years, the principal gain to be derived from the whole process is the purposeful and focused direction that the national strategic framework and the operational programmes provide.

This realisation lies at the very core of EU cohesion policy. It is not just a question of money (albeit an important consideration) but also one of vision, purpose and direction. Ultimately this is likely to prove to be the overriding benefit of EU membership.