Malta needs to do more to achieve targets

A report analysing Malta's progress in achieving a number of economic, fiscal and social targets set in 2005 shows the island has made good progress in some areas over the past three years.

This progress related particularly to the economy and public finance.

The Commission, however, reports that much more needs to be done to improve competition and the labour market if the island is to achieve its self-imposed benchmarks by 2010.

The report, the second of its kind, assesses the progress made by Malta in the implementation of its National Reform Programme (NRP) and country-specific recommendations, as adopted by the EU Council last spring.

According to the European Commission's review, Malta needs to tackle certain weaknesses with the highest priority.

"Malta needs to strengthen competition, notably by reducing state aids and redirecting them towards horizontal objectives as well as by reinforcing the competition authority and by further steps in opening up professional services," the report says.

The report notes that the authorities are developing measures to strengthen the enforcement capabilities of the competition authority and to amend the Competition Act but these measures are yet to be implemented.

The level and share of state aid are still the highest in the EU. Malta must make progress in this area given that there has also been an increase of infringement cases.

The Commission said Malta should also improve the quality of the transposition of internal market legislation.

Brussels also comments about Malta's employment market.

"Malta needs to step up its efforts to attract more people to the labour market, particularly women and older workers. It also needs to maintain efforts to tackle undeclared work and take further action on the benefit system to make declared work more attractive."

The report states that there has been some progress in 2005-2007 as the employment rate increased slightly, reaching 54.8 per cent last year, alongside a female employment rate of 34.9 per cent, the lowest in the EU.

The Commission states that Malta's target of a 40 per cent female employment rate by 2010 "seems some way off".

On the other hand, the Commission lauds Malta's efforts on public finances, noting that the country achieved good progress between 2005 and 2007 in addressing the macro-economic challenges to restore the fiscal balance. The report will now be submitted to EU leaders at the spring European Council which will adopt conclusions on the way forward.