Implementation to be monitored by Cabinet committee

Attending his first EU summit after being re-elected last Sunday, Prime Minister Lawrence Gonzi yesterday said Malta is fully committed to meet ambitious targets set by the EU in both the Lisbon strategy for growth and jobs and on energy and climate change.

Speaking to the press in Brussels late yesterday evening following the first session of the European Council, Dr Gonzi said the monitoring process to assure that Malta is keeping with its commitments will be closely followed by a special Cabinet committee.

"I intend to hold the first Cabinet meeting next Monday and one of the first decisions to be taken will be the formation of Cabinet committees for various sectors.

"My intention is that Malta's Lisbon goals will be followed by one of these committees. I haven't decided yet which Minister will be chairing this committee but the decision will be announced soon."

In its national reform programme drawn up in 2005, Malta set itself five specific targets to be reached by the end of 2010 in the context of the EU's Growth and Jobs strategy, known as Lisbon, aimed at putting the EU economy at the forefront of world economies.

The targets include a balanced budget by 2010, an improvement in employment participation figures, particularly in the female sector and an increase in investment for research and development.

In the council's draft conclusions, the EU acknowledges the progress by Malta to put its finances on a solid background.

At the same time it says efforts need to be stepped up to improve competitiveness and competition policy.

"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 summit's draft conclusions state.

In fact, state aid - particularly due to the subsidies still given to Malta Shipyards - is still considered to be a major drawback for Malta and ranks the island on top of the state aid scoreboard. Malta's female employment rate is the lowest in the EU standing at just 34.9 per cent in 2006.

EU leaders are also expected to agree on a new package of measures meant to improve Europe's response to climate change.

Last year, the 27 member states agreed to achieve at least a 20 per cent reduction of greenhouse gas emissions by 2020 compared to 1990 and to produce 20 per cent of all their energy needs from renewables.

Malta is to increase its use of renewables to 10 per cent of all its energy consumption by 2020, a massive increase on the current 0.36 per cent level, the lowest in the EU. The use of biofuels for transport purposes will also have to surge to at least 10 per cent in 12 years' time.

Dr Gonzi said one of the most important decisions the government needs to take is whether Malta should be linked through a submarine cable with Sicily and be plugged into the European energy grid.

"This will cement our security of energy supplies as we can start importing energy directly from Europe. We aim to make this decision very shortly," he said. In today's session, EU leaders are expected to hear about French President Sarkozy's plans to launch a Mediterranean Union next July when France takes over the six-month rotating presidency of the EU.

The summit comes to an end today. Prime Minister Lawrence Gonzi, who is accompanied by Foreign Minister Tonio Borg and Finance Minister Tonio Fenech is expected back this evening.