UPDATED: Malta 'falling back' in receipt of EU funds - MLP
(Adds Finance Ministry reaction to yesterday's statement by Dr Mangion on government finance)
The government in the first six months of this year had only managed to get €12 million in EU funds to Malta, even though the projection for the whole year was of €116 million, opposition finance spokesman Charles Mangion said today.
He said these were structural funds linked to specific projects. The funds were handed over once the preparatory administrative work was completed and once the projects were completed in a specific time.
“Our country is falling back in the receipt of EU funds because administratively and in the management of projects, the Nationalist government is not efficient. This is throwing economic development back,” Dr Mangion said.
An explanation from the government was required.
Dr Mangion further pointed out that Malta paid a monthly €5 million contribution to the EU in terms of its obligations.
“This means that not only are we falling back in the receipt of EU funds, but at the same time our contribution is being made regularly, as it should, and this is negatively affecting the country’s financial situation,” Dr Mangion said.
Meanwhile, the Finance Ministry reacted today to remarks by Dr Mangion yesterday where he criticised the government’s budget projections.
The ministry said it would have been wiser had Dr Mangion held back until the full year figures were issued.
The ministry recalled that at the last budget, thanks to economic growth, it was able to reduce income tax so that the people could have more disposable income ahead of the problems stemming from rising oil and food prices.
Thanks to the government’s measures, and despite the international turmoil, the domestic economy had still expanded by 3.5 percent in the first half of this year and government revenue rose by €57 million.
It was also worth recalling that the government had substantially increased a number of social benefits, including children’s allowance, which increases were reflected in the spending of the first half of the year, but would not be reflected in the second.
The biggest impact on the government’s spending, however, was an unexpected increase of €30 million in assistance to Enemalta so that the power surcharge could be kept at 50% up to June.
The ministry said the government remained committed to its election promises, in the context of economic and social realities which the country was facing because of the international economic crisis.
The ministry said it was still awaiting the Labour reaction to its budget consultation document.
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Martin Büttner
Jul 30th 2008, 15:18
@ L Galea:
You think Malta has become a colony again? Where are the troops? Are all the taxes sent to Brussels? Is there European representative in Malta who orders all what president, government and parliament have to do?
Having more people working in civil services means also a lot more administration which slows down everything. If the Maltese civil services worked more efficiently (e.g. full day in summer in times of a/c units), and if the Maltese government really wanted to be part of the EU, implementation processes could be the fastest in Europe.
Martin Büttner
Jul 30th 2008, 15:16
@ L Galea:
1. Sovereignity - All EU member states are still sovereign countries. All decisions taken by the EU Council (and the Maltese representatives have to agree as well) and the European Parliament (Malta also has MEPs) have to be ratified by the Maltese parliament before implementation.
2. Management of external and internal affairs - Did the EU do anything to end the transport strike? Or does the EU manage/change/alter the Maltese rent laws or the pension laws?
3. Right to enter into treaties - see 1. - If you refer to the Partnership for Peace Agreement, you should know that Malta's PfP membership was the Maltese government's idea.
4. Right to decide own laws - see 1.
5. Who has a right to come and settle in malta - see 1.
6. The keeping of illegal immigrants - see 1.
L Galea
Jul 30th 2008, 07:59
@Martin Büttner
Everything means our sovereignty, the management of our external and internal affairs,
the right to enter into treaties on our behalf, the right to decide our laws, who has a right to come and settle here, the keeping of illegal immigrants, etc etc etc.
In other works, we have again become a colony of all the European colonizers united in the european union.
As for the implementation of eu dircetives etc, the bigger countries have a lot more public service employees who can see to their implementation, so our small size is a disadvantage in such cases.
A Daley
Jul 29th 2008, 23:55
I happen to have some figures from the DOI.
In 1987 the National Debt was £65 million much, much less than 60% of GDP in them years.
In 2008 the National Debt is over 3.4 BILLION Euros, which is more then 60% of GDP.
It is not the money that we receive that is important, but the NET amount we receive for investment for our future, like Air Malta and all the rest that we now have and did not have pre 1971, and not roads which crack under the first vehicle that goes over them!
Some people are so gullible! Some 49% of the electorate have the same problem.
Any figures for the coming budget, M J Gatt? Ask Tonio, he should know!
Rita Spiteri
Jul 29th 2008, 21:55
@ everyone of you
Do you really believe all the rubbish that say
Martin Büttner
Jul 29th 2008, 18:55
@ L. Galea
You're right, but how big are all the other member states and how small is Malta? In a small country the implementation should be easier and much much faster. Why does it work in Luxembourg, which is also a small country? Malta's BIGGEST advantage is its small size. WHy does every Maltese sees this as Malta's biggest disadvantage?
Oh, and what is EVERYTHING, that the Maltese have given to the EU? Ending monopolies, opening markets, giving consumers rights, free and easy travel, cheap travel? Is that everything you mean?
M J Gatt
Jul 29th 2008, 18:05
@ A Daley.-When you try to quote in Maltese, please check your ortography. In yuor quote one can find TWO mistakes, namely TIHUX (not tiehux) and MILL-EU (not mil- EU). If we get the equivalent of one LIRA more than what the MLP told us, then we have made progress. Do you remember the figure? If not ask Joseph.
L Galea
Jul 29th 2008, 17:43
@Manuel Mifsud et al
Do you mean doctored figures?
Oh, by the way, euros are falling out of everyones pockets since we joined the EU.
@Martin Büttner
Don't you know that we have given EVERYTHING to the EU Martin?
With your reasoning, no other EU member country would get any money because they all fail miserably in many ways, including the implementation of directives, regulations, state aid etc.
Have a look at the EU Court website and you will be truly enlightened at the hundreds of cases instituted each year against member countries.
Martin Büttner
Jul 29th 2008, 16:17
Malta gets as much as it deserves. If Malta and its government were more pro-EU (as they say) and if Malta implemented EU directives as it should and should have, then one can argue that Malta should receive more funds. On a number of issue Malta is well behind schedule, e.g. liberalisation of various industrial fields (energy, transport, etc.). And do you know how many cases are filed against Malta in the European courts? Too many! Get your EU policy straight and right, and then you can ask for more money. It's not just receiving only! You also have to give something!
A Daley
Jul 29th 2008, 13:42
Dr. Gonzi before the election.
quote - Inti ma tiehux gost bil-flus li gejjin mil-EU, issa?
Inti qieghed tiehu gost titlef il-flus mil-EU, DR GONZI?
George Cremona
Jul 29th 2008, 12:42
The Opposition finance spokesman, Charles Mangion, like the rest of his companions on the opposition benches, has the bad tendency to rush into half baked conclusions. Most of the time he is proved wrong and on others is ridiculed as was his electoral proposal of tax free overtime.
Manuel Mifsud
Jul 29th 2008, 12:30
The Ministry is correct in advising Dr. Mangion to hold back any remarks regarding the financial situation until the full year's figures were out. During the last years we have experienced similar remarks by Opposition spokesmen, half way through the year, only to find out at the end of each year that Malta's deficit was decreasing even more than projected.
The Opposition itself is mentioning the fact that Malta is "falling back" in receipt of EU funds and still has to receive around EUR 116 million. I am sure the Government will recoup these funds which will definitely make up for the additional increase in expenditure.
R.Gauci
Jul 29th 2008, 12:08
The only projects you can see when you look around the island are just the building of speculative apartments!! What about huge projects to make new Touristic Attractions such as a natural sea water Aquarium in Bugibba or the south of Malta or other projects related to eco- energy and boost the economy and could start to pay better wages? Are the people in power just safeguarding their own interests? When we will see the so much promised Valletta entrance project included the rebuilding of the Royal Theatre or new roads to solve some traffic congestions? (and I mean New not resurfacing) I am sorry to say but the common people are not getting enough from Malta's membership to the EU as it was promised!! That's a fact!!
The only good thing we are getting is to go to work and live in an other member state and enjoy the benefits of being an EU citizen over there as I did!!!
Peter Montebello
Jul 29th 2008, 12:06
We can't possibly be getting less than 'Miljun u nofs fi flus kontanti' as Joseph told us in 2003!