Ivan Camilleri, Brussels
Malta wealthier, EU study finds
Malta is getting richer, although the island is still a long way off from achieving the average level of prosperity reached in the EU.
According to a new EU survey, the island's economy is in much better shape than many other EU regions both in the "old" and "new" member states.
While being four times poorer than London, measured by GDP per inhabitant, Malta is only slightly less well-off than the average throughout Italy. But it is better off than Sicily or the southern Italian regions.
The same holds true when Malta is compared to some regions in Spain, Greece and Portugal, which have been members of the EU for decades.
The measure of wealth is based on a methodology known as Purchasing Power Standard (PPS), an artificial currency that takes into account differences in national price levels.
Malta's purchasing power per inhabitant (18,200 PPS units) stood at 77 per cent of the EU average (which stands at 23,600 PPS, i.e. 100 per cent) in 2006. This signified an increase of 870 PPS units per inhabitant over the previous year.
While it may be positive from one angle that Malta is getting more prosperous, there is a negative side too - it could lead to fewer funds coming our way from EU coffers next time the bloc's seven-year budget is set.
According to EU rules, only those member states and regions with an average GDP per capita of less than 75 per cent of the EU average are eligible to the maximum possible funds.
This means that if Malta's economy continues to grow at the current pace, it will not be possible to obtain as much funding as it received in the 2007-2013 financial package, which amounted to at least €855 million. The figures will be decided in 2011/2012.
In general, Eurostat's data show that in 2006, the four leading regions in the ranking of regional GDP per inhabitant were inner London (336 per cent of the average), the Grand Duchy of Luxembourg (267 per cent), Brussels (233 per cent) and Hamburg (200 per cent).
The 20 lowest ranking regions were all in Bulgaria, Hungary, Poland and Romania, with the very lowest figures recorded in northeastern Romania and Severozapaden in Bulgaria (both 25 per cent of the average).
GDP per inhabitant provides a measure of the total economic activity in a region and may be used to compare the degree of economic development between regions.
However, it does not measure the income ultimately available to private households in a region.
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John cassar
Feb 23rd 2009, 03:32
who calls it lies or a joke! At the end of the day, if one always relies on the state for the handout or for employment, one will always feel miserable. The individual controls one's destiny yet wants someone else to fix their future. An ever changing economic climate will always provide challenges to all. The more hangers on there are, the less for real national development.
Noel Enriquez
Feb 22nd 2009, 02:03
Haha! These jokes get better as time passes!! Thankyou EU for boositing our humour while taking every dime from our pocket, haha, talk about service with a smile!
Robert Scullion
Feb 22nd 2009, 01:27
@IGalea
I presume that if you agree with figures that the media reports are true, how come you deny this news articles figures. Is it because you don't agree with it outcome?
Countries within the EU can't impose custom duties on each other. So we're getting cheaper goods. If we leave and the Gov. imposes import duties it'll increase prices. Is that what you want .. to force the pubic to pay more for imported goods than they do now?
Also I did look for other figures and I can only see that Malta gains more than it pays. Admit it your telling porkies just to advance your own (failed) anti-EU agenda.
By the way, http://en.wikipedia.org/wiki/Budget_of_the_European_Union shows that Malta will pay approx €500m over 5 years and receive €1b back.
If you can't provide evidence that we pay more I think that speaks for itself.
L..Galea
Feb 21st 2009, 21:28
Robert Scullion
Everyone knows that we are paying more than we are receiving.
It's been on the media and if you do not it know you must be living on the moon.
If we want to import from any country which is not in the eu we have to pay the customs duties and levies imposed by the eu petty dictators which duties and levied go to the eu not to Malta while we pay the customs officers to collect them.
If we leave the eu the Maltese government will be free to impose or not any customs duties, so even if it imposes customs duties and levies at least they will remain in Malta's coffer to be used for the Maltese people not for the eu petty dictators lavish lifestyle.
As for the other comment re expanding the figures I am not going to do the work for you. You can either do it yourself or listen to the media and you will know them.
As a europhile you are simply trying to deny the truth when the truth has been made public and is known by everyone or at least the majority except you.
Robert Scullion
Feb 21st 2009, 20:37
@LGalea
Are you trying to claim that Malta is paying more into the EU that it will received?
Now your just being childish and foolish.
Also please explain what would happen if we left the EU and Malta had to start importing items from Italy again, but with duties applied .. we wouldn't be in a free market anymore. Would you be happy to pay higher prices?
Please expand on 'all the figures' .. facts please otherwise people will think you're making it up.
'colonialist eu petty dictators' -- by the way who are these people? The parliament is elected by the people and the Commission is appointed by elected governments.
M. Catania
Feb 21st 2009, 19:04
What a pleasant surprise!!! But there must be a skewed explanation for this judging from the MLP apologists who always predict doom and gloom.
The sun will finally rise in the event of a PL victory!!!
Joe Fenech
Feb 21st 2009, 18:36
We know that all the information given by the local authorities is flawed. It's an open secret. Even the embassies know about it..!
Time for politicians to face reality and act.
Mike Magri
Feb 21st 2009, 17:25
Haaaa Haaaa Haaaa... Sooooo Camilleri tells us that the EU said that Malta is "Getting Ritcher.." than some of the EU countries.... Well.. I am sure, that if you ask Is-Sinjura `Duminka`, she will instantly tell you..... "..Ruuhhiiiiii... Mela hekk Sewwwwaaaa... Malta `ssir aktar sinjura u l-Maltin aktar Migduma.... Mhux hekk Ruhiii Qalbiii...." Halluna...
M.Gauci
Feb 21st 2009, 15:30
@L.Galea - your statistics is flawed. Because first of all there are other statisical averages, like the mean mode median which you can research at your own time.
The example you got of 10 people does not hold. The reason being that none of the EU countries are in the state you got the example of. It is true that the more countries that join the EU which are below the average will increase Malta's placing, but then, that is just that, Malta would be above the others in terms of richness (per capita).
Doesn't everyone know that USA is rich ? Doesn't everyone know that you find poor people there ? So is USA rich or poor MR. Galea ? Will Malta (as you expect) ever be covered in Gold ? Earth calling Mr. Galea, it will never happen. But with your idea of Malta staying out of the EU, we surely would have done well living in hell !
Ivan Attard
Feb 21st 2009, 15:25
Says who? Just give us a break from this EU bullshit studies which seem to be the only reason we are in the EU - for distorted surveys!
I can tell you that I am personally MUCH poorer than before we entered the EU!
L..Galea
Feb 21st 2009, 14:34
Mark Anthony Sammut
Galea is a very common surname in Malta and we are all related to each other from Adam and Eve.
Does the truth upset you Mark Anthony?
Mark Anthony Sammut
Feb 21st 2009, 14:11
L.Galea, are you by any change related to Igalea?
Please stop boring us with the same 'colonialist eu petty dictators' in every post you write. What's next? Gonzipn elves? Pn apologists? Or will you come up with a new catchy expression?
Give us a break pfffff.
L..Galea
Feb 21st 2009, 13:44
Robert Scullion
You got it wrong again Mr europhile.
We bought and buy more from Italy because we do not produce everything we need so we import from Italy more than we sell to it.
You are wrong in persisting to say that we are receiving more from the eu than we are giving it.
Add all the other figures I referred to and others and you will find that we are receiving less than we are paying.
This will be far worse when we will not longer fulfill objective 1 criteria which will not be long since new member states in the pipeline have a standard of living and GDP much lower than us which will lower the eu average putting up our relative average above the eu average.
You understand nothing about how the eu works, but simply a europhile with stars in your eyes that are not letting you see the truth written all over the place.
I and the vast majority hope that the eu disintegrates in the shortest possible time so that we will regain or independence, freedom and sovereignty and be free from the colonialist eu petty dictators yoke.
Robert Scullion
Feb 21st 2009, 11:52
@IGalea
So we bought more from Italy because the people couldn't find the products from local business. Then we took charity from them as compensation.
Also we will still receive more from the EU than will be paid in.
€153,400 *365 * 7 = €392m
against €855m being received
So its okay to take money from Italy but not from the EU.
Also I'm not on the EU gravy train as you put it.
I just happen to understand how it works and how it benefits everyone better.
L..Galea
Feb 21st 2009, 11:21
Robert Scullion
The Italian Protocol was simply as compensation because we were buying more from Italy than we were selling to it Scullion.
As for your figures, the €855 million are not for one year but over seven years.
And you did not consider all the other losses I referred to, apart from the loss of sovereignty on which no price can ever be put.
When everything is considered, we are already paying the eu more than we are getting apart from the havoc that the eu membership caused and will continue to cause to our economy, employment and the Maltese population as long as we remain members.
Continue enjoying your eu gravy train Scullion for it shall not be long before the eu implodes and disintegrates like the USSR and other empires before it.
Robert Scullion
Feb 21st 2009, 10:52
@IGalea
If Malta was such a paradise before we joined the EU why did we need to take money under the Italian Protocal?
Also €153,400 a day works out to be only about €56m a year. If we're getting €855m back that seems a good investment.
J.Jones
Feb 21st 2009, 10:30
If the island is getting richer and in a better state why so many moaners on both islands. Are they greedy or don't know where to stop! many times when we visit your nice islands we ask people at the shops we normally go to "How is business"? and their answer is always @Oh..Bla. Bla. Bla. Not So Good, the government this and the government that, yet they are racking in, we just don't believe them, don't you worry they are doing alright regardless of their usual maon, it might not be so good this year or next year because of downtrend of British tourists, but then now at last they have something to maon about. T.T.F.N. J.J. Bolton.
Karl Abela
Feb 21st 2009, 10:06
Didnt Tony Zarb tell us that the 'purchasing' power of the Maltese was very low?
Who are we going to believe? A politically motivated big mouth or an impartial survey based on a proven statisitical methodology?
aahhhh maybe the statistics coming from the EU are corrupt....isnt that what Lejber tells us everytime there is a piece of good news?
L..Galea
Feb 21st 2009, 10:06
There are lies, damned lies and statistics.
Let me show you a simple example.
Consider a country with ten persons where 1 person earns a million euros in a year, while another 9 earn nothing because they are unemployed.
Statistics would average their earnings by saying that each person earned an average wage of 100,000 euros.
Are the statistics correct?
The eu can tell it o the marines.
"...which amounted to at least €855 million."
Are they not forgetting to deduct the €153,400 DAILY which the eu petty dictators ordered the Maltese people to pay them apart from all customs duties and levies while we pay the customs officers to collect them, part of VAT, the loss of interests on our foreign reserves which were sent to the ECB for the eu to take the interests instead of us, the loss of the Italian Protocol, the money spent in implementing the SchenĠENN Agreement, money for our civil servants constantly going to Brussels on eu business, the expenses for the thousands of illegal immigrants invading us since we joined the eu (nearly €200 MILLION simply to keep them 18 months in detention) etc.etc.?
philip pace
Feb 21st 2009, 09:42
Yeah, Mr.Camilleri,
If pigs could fly!
One cannot agree with your pro EU propoganda because you are quoting an artificial statistical method, while the natural and real outlook is quite different.
Keep on fooling us.
Next write something more real and true.
Shall we rename Malta as Eldorado next?