Ivan Camilleri, Brussels
Malta makes net gain from EU
1 From 2001 to April 2004 Malta received €12,953,117 pre-accession funds. 2 The remaining amount of €3.5 million will be paid in 2009. 3 The remaining amount of €14 million will be paid in 2009. 4 These amounts are not included in the revenue of the Malta budget but are considered as cash inflow to the Central Bank. 5 From 2001 to April 2004 Malta received €4,989,876 for participation in EU education programmes. The amounts received from May 2004 to December 2008 cover funds received by Malta for participation in EU education programmes, and in 2007 the amount includes the payment of €3,403,516 for participation in EU education programmes and the payment of €6,415,261 for participation in other EU programmes. 6 Payments are for an application to the Solidarity Fund (2004) and for an application to the European Globalisation Adjustment Fund (2008).
Malta has ended up with a significant positive financial balance during its first four and a half years as an EU member, according to figures obtained by The Times and confirmed by European Commission officials.
The figures contradict recent claims made by Labour Leader Joseph Muscat who said the government was not managing its EU funding allocations well.
Labour's claims were quashed by Richard Cachia Caruana, Malta's Permanent Representative and one of the people who led the government's negotiations on the 2007-2013 financial package that netted Malta €855 million.
Asked for the amount Malta has received since it joined the EU and how much it has contributed to EU coffers, Mr Cachia Caruana provided figures which show the island received more than €209 million over the amount it contributed by the end of last year.
"The facts do not bear out what Dr Muscat has been saying," Mr Cachia Caruana said when contacted.
The figures (see table) show that between May 2004 and December 2008, Malta received €462,695,497 in funds and paid out €253,567,518 as its contribution.
These funds do not take into account the total allocation to Malta made by the EU for this period. According to the rules, more funds will be transferred in the coming years once the receipts of ongoing projects, under the Structural and Cohesion Funds, are presented.
Earlier this month, Dr Muscat claimed that the government was mismanaging EU funds and said the island was ending up paying more into EU coffers than it received.
Dr Muscat said that from Labour's calculations for the past two years (2007/2008), Malta had paid €12.6 million more to the EU than it received.
The government's figures, which have also been checked by the Commission, show that even looking at just the two years indicated by Dr Muscat, Labour's figures were wrong.
Taking only those two years into consideration, Malta received a total of €143 million and paid €117 million, leaving the island with a net balance of €26 million - €38 million more than the figure claimed by Dr Muscat.
Reiterating EU Regional Policy Commissioner Danuta Hubner's recent positive comments about Malta's track record, a senior Commission official, monitoring the use of EU funds by Malta, told The Times the Commission was very satisfied with the way Malta was managing its funds.
"It is clear Malta has learnt the rules of the game very quickly in the past years. It is one of the best member states where it comes to the absorption of EU funds. During its first eligible funding period (2004-2006), Malta's absorption rate is more than 90 per cent," he said.
"It is also managing to put its projects for the current budgetary allocation (2007-2013) on the fast track and was the first EU member state to have its plans approved by the Commission last year."
The EU budgetary rules are quite complicated although very well defined. According to the financial procedures, Malta had until December 2006 to request the EU for payment of the 2004 allocation; until the end of 2007 for the 2005 allocation; and until last December to request funds allocated for 2006.
In the light of the current economic crisis the Commission had just approved an extension of the eligibility of this expenditure until next June.
For the 2007-2013 programming period, the second EU budget applicable since Malta joined the EU, the island was allocated €855 million in Structural Funds of which €112 million were allocated for 2007 and €115 million for 2008. Malta has until the end of 2010 to spend the money for 2007 and until the end of 2011 to claim the 2008 allocation.
Besides these funds, Malta was also granted extra EU funds for, among others, agriculture, fisheries and justice and home affairs, boosting its total allocation so far to €1,069 million. The latest addition was €112 million allocated under the European Refugee and External Borders Funds to help the country better tackle illegal immigration.
Malta is currently taking part in discussions at a Council level for the allocation of funding for its electricity connection with Sicily with a €20 million grant now being earmarked in a revised Commission proposal. Malta had originally been allocated just €6 million and the increase came following intensive lobbying by the government, including the direct intervention of Prime Minister Lawrence Gonzi and a series of meetings held by the Permanent Representation in Brussels.
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Gianninu Saliba
Mar 4th 2009, 11:32
L. Galea's quotes fit Dom Mintoff and his Labour Party like a glove. It was Mintoff's Labour Party that wanted integration with Britain and when that failed, years later when he ended in government again, he rented out what was ours to the same colonial country that he wanted to sell our soul to. Yes it was ours land he rented out, otherwise he would not have had the right to rent it out. The British forces, between 1964 and 1971 were here as our guests and at the same time they were obliged to defend us against any agressor if, and only if, we instructed them to do so. No my friend the PN was born with one conviction and that principle is enshrined in our principles and Borg Olivier made sure it was also guaranteed in the 1964 Independence Constitution. My friend, your last quote is the one that I really like. It is most appropriate to whoever was responsible for Malta's darkest days... when democracy was under threat. By the way, Richard Cachia Caruana, as Malta's Representative at the EU is obliged to clarify matters and point out inaccurate and misleading statements pertaining to Malta and EU.
DR. JOHN A. CONSIGLIO
Mar 4th 2009, 10:46
The PL's and the journalist's positions on this subject are both absolute hogwash. For an economy - not much dissimilar to a business - it very often is more important to watch "cash flow" rather than net surplus's or gains in various years or over an economic cycle. I will be discussing this more in detail in an academic article being included in an EDRC book later this year, but meanwhile both the above exponents might do well to read what Maltese economist Bernard Gauci had to say about funds flow from the EU some years ago in an excellent article written by him.
Dr. John Consiglio
L..Galea
Mar 4th 2009, 09:13
P.S.
Since when it is an ambassador's job to meddle in politics and contradict the leader of the opposition?
Is it not the government's job to do so?
Ah, I see. Getting some publicity for the next job.
L..Galea
Mar 3rd 2009, 23:04
Gianninu Saliba
This was said by Samuel Adams in a speech at the Philadelphia State House, August 1, 1776.
"If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains set lightly upon you, and may posterity forget that ye were our countrymen."
"Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety." — Benjamin Franklin
How can we be grateful to those who betrayed our country and made us again a colony of the foreign eu?
An old Maltese proverb says that "Min jiċħad l-art twelidu miżbla żibel lanqas tridu".
Meditate Gianninu, Meditate.
Ryan Dalli
Mar 3rd 2009, 20:05
Jekk tassew huwa hekk, fejn qeghdin jigu invesititi il-Flus?
Fl-Isptar? Fic-centri ta' Ditenzjonijiet, fl-Iskejjel? Fl-Ambjent?
V Fenech
Mar 3rd 2009, 19:16
Hadn't been for Joseph Muscat who warned us what is going to happen in the near future, this information would have been kept secret. It is alarming! The Leader of the Opposition quoted that Malta is going to end up as a net contributor if this rate of net balances is going to continue falling down. And by time we will continue to confirm how much Joseph Muscat is right when saying that at this rate we will soon end up as contributors to the EU.
We know that the first years of membership are the best years for obtaining funds from the EU. What RCC refuses to say is that from the 10 countries which joined the EU in 2004, Malta has placed the last when coming to EU funds!!
This YT might help you know what needs to be our preoccupation concerning the EU funds...
http://www.youtube.com/watch?v=ZUTfE-sN2so
Where are the minimum of 855 Million of Euros Dr Gonzi??? And the half a billion mentioned by Simon Busuttil?? Have they been reduced to 5 million Euros????
J Busuttil
Mar 3rd 2009, 18:30
Was it not Joseph Muscat and the MLP that a few days ago said that Malta was a net contributor? Is this the way od doing NEW politics? Gloom and doom from the PL even when this is not so. The MLP has gone backwards with the like of No 2 EU like Sharon,it-Trigona,Eddie Privitera and Joseph. And PL apologists be on guard for another surprise on the PN list of candidates for the EU election.
Joseph Agius
Mar 3rd 2009, 18:05
My biggest concern is this: If Joseph cannot even get the European related issues facts right how can we expect him to get the education, health, foreign, social and other issues facts right? That is the question!
c.camilleri
Mar 3rd 2009, 17:57
Oh my God. But why are sceptics never satisfied.
M Callus
Mar 3rd 2009, 17:56
@S cassar
Great of you to show us this article. This shows us what politics Joseph muscat is capable of. politics of hypocrisy and convenience.
S Cassar
Mar 3rd 2009, 17:42
JOSEPH TODAY TRIES TO GIVE THE IMPRESSION THAT HE IS A STAUNCH EU SUPPORTER
PERHAPS THIS ARTICLE HELPS TO REFRESH HIS MEMORY!
http://www.l-orizzont.com/news.asp?newsitemid=807
L Vella
Mar 3rd 2009, 17:27
@ wally vella-zarb
The bottom-line is that, hopefully, we will see a surge of income in 2009, 2010, 2011, 2012 and 2013 because the projects will start spending money and thus claiming the 85% that the EU forks out for Malta. Unfortunately the EU will not fork out its 85% unless the Maltese Gov. spends its 15% and makes the claims for reimbursement. The surge in income will then decline in 2014, 2015 when the projects will be closed and the final reporting on the projects will take place. However by then we will be choosing the projects for the 2014 - 2020 or whatever the EU decides.
Hope this clarifies how the EU works with regard to funding. I don't think that there should be any controversy about this issue. Up until 2013 Malta will definitely be a net contributor - no questions asked. We will have to see from 2013 onwards depending on many factors such as the countries that will join the EU (if any) and our economic performance.
wally vella-zarb
Mar 3rd 2009, 15:35
@ L Vella
"Now the selection procedure could take months to complete therefore the initial expenditure in years such as 2007 and 2008 will not be necessarily so high because project implementaiton peaks in the middle, i.e. 2010 or 2011, then it declines again towards the end."
So will the bottom line figures for the years 2009, 2010, 2011, 2012 and 2013 be more than €5million per annum - or will they be even less??
Just to make things clearer...
chris formosa
Mar 3rd 2009, 15:13
@ E Vassallo.
Mr and/or Mrs E Vassallo, please stop getting hot under the collar
Joe Vella (Mellieha.)
Mar 3rd 2009, 14:54
@ L. Galea
"The illegal immigrants would not have come here if we were not in the eu."
Perhaps we if the MLP/PL had their way they would have relocated Malta in the middle of the Atlantic.
The reason illegal immigrants finding themselves in rough seas and being rescued by Malta has nothing to do with the EU, just a question of Malta's position in the Mediterranean Sea and it's obligations for Search and Rescue territorial Seas.
deb bugeja
Mar 3rd 2009, 14:45
' Malta makes net gain from the Eu? and the question is what did the maltese people gain from it? taxes on bags,, increase on food and vegetables, increase from car licenses, increase on electricity and water tariffs.
L..Galea
Mar 3rd 2009, 13:41
E. Vassallo
The illegal immigrants would not have come here if we were not in the eu.
Besides, we would not have been bound by the Dublin II convention imposed upon us.
wally vella-zarb Have you ever heard of the word DEFICIT?
Antoine Mifsud You are correct.
P CASSAR
Mar 3rd 2009, 13:40
PLEASE REMEMBER THAT ON BECOMING MEMBERS OF THE EU WE HAVE HAD TO IMPORT ALL OUR WHEAT MEAT BUTTER SUGAR ETC ETC FROM THE EU EVEN THOUGH THE PRICES FOR SUCH ITEMS WERE MUCH LOWER ON THE WORLD MARKETS MILLIONS WHICH CAME OUR WAY, WERE THUS SIMPLY SENT BACK TO PAY HIGHER PRICES
CAN ANYONE CHALLENGE THIS
L..Galea
Mar 3rd 2009, 13:36
Do our annual contributions include all customs duties and levies that all go to the eu while we pay the customs officers to collect them?
How much salaries were paid to customs officers?
How much duties and levies were sent to the eu?
How much money are we losing from the foreign reserves that had to be sent to the ECB?
What was the eu's share from VAT?
How much money have we lost from the Italian Protocol?
How much money has been spent on illegal immigrats since it is the eu's fault that we are lumping them?
How much money has been lost through the loss of employment since joining the eu?
How much money was spent by government employees and government officials including ministers, the prime minister etc on eu related business?
How many government employees are working on eu business and what amount of salaries were paid to them?
What about the loss of sovereignty? How much does that cost? In the words of a Labour deputy, the amount is inestimable.
Just a few questions that needs to be answered. There are much much more, but enough for now.
emanuel bajada
Mar 3rd 2009, 12:41
I am shocked, incredible - 2008 a paltry 5million and a bit euro, just over 2 million lira. This is not far from the million and a half liri Alfred Sant had forecasted. Only 1lira and 70 cents per capita for 2008- big deal. Maybe Joseph Muscat was wrong in figures, but thanks to him we get this reality known. It would have not been published otherwise. Thanks Joseph.
Not withstanding this I still think that going into the EU was the best political move this nation ever made.
Gianninu Saliba
Mar 3rd 2009, 12:05
€1,069 million. Yes, One Thousand and Sixty Nine Million Euros coming our way. No Dr. Sant it is not one million euros, it is one thousand and sixty nine million euros. No, incompetent Joseph, Malta has not paid €12.6 million more to the EU than it received.
No wonder, inefficient Joseph cannot promote what he used to proclaim. He had to accept that Malta should be in the EU. We will be cleaning out (between May 2004 and December 2008) €462,695,497 and by 2013 another €1,000,000,000. Can you count them inexperienced Joseph?
Fact: the nation must be grateful to the PN. Fact: this is a great political party. We had Furtunat, Sir Ugo and Nerik who fought tooth and nail against conlonial injustice. We had Borg Olivier to encouraged us to walk where others did not dare. He held our hand to walk along the path of freedom. Then we had Eddie Fenech Adami who survived the onslaught and regained our democracy. And now we have Gonzi and during his first and second term as Prime Minister he will utilize €1,462,695,497 for our beloved Malta obtained from the EU. That's €1.5 billion, with a 'b' not an 'm' Dr. Sant.
E. Vassallo
Mar 3rd 2009, 11:34
@Chris Formosa
What are you saying???? Illegal immigrants come here WHETHER we are in the EU or not. Remember when a ship full of Albanian immigrants came here in the early nineties? Immigrants have been coming long before we were in the EU.
Another thing is that immigrants don't want to come to Malta but their primary destination is Italy.
I would propose that we can push Malta into the Atlantic or further up the Meditterrenean near Sardinia!!!
Enough with your comments Mr. Formosa.
P.Schembri
Mar 3rd 2009, 11:30
Good now we know Malta's net gain from the EU. What about the other Euro 798 million? Oh, one other thing, what is our annual net contribution to the EU? Bragging about Lm2 million, a far cry from the Lm100 million promised to us!
Joseph Agius
Mar 3rd 2009, 11:28
@chris formosa
The problem with your argument is that the new Joseph Muscat (pro Europe) does not agree with your argument. So he has changed his view.....and you Chris, haven't you?....
L Vella
Mar 3rd 2009, 11:25
@ wally vella-zarb
Not to contradict you or anything but the figures you gave are very easy to answer. When Malta joined the EU it started participating in programmes ranging through various years, 2004 - 2006 and 2007 - 2013. During these financial periods the country will choose a number of projects to implement to which funds will be allocated. Now the selection procedure could take months to complete therefore the initial expenditure in years such as 2007 and 2008 will not be necessarily so high because project implementaiton peaks in the middle, i.e. 2010 or 2011, then it declines again towards the end.
Apart from this, if there's going to be extreme objections by organisations like the FAA to every project proposed by the government these funds will be completely wasted. So I hope that in the future more civilised and informed discussions could be held in this country!
I hope this answers your difficulty to comprehend.
chris formosa
Mar 3rd 2009, 11:21
@ joseph agius
@ E Vassallo
Illegal immigration has all to do with malta's eu membership. It came in the package whether you like it or not. Malta as an EU member, being geographically at the outer bottom border of the EU, is a natural magnet for illegal immigrants, just as italy. So enough with your comments.
Mario Stivala
Mar 3rd 2009, 11:19
If all these millions came to malta can someone tell us where they have been invested .
Surely not in the roads .
Salvu Felice Pace
Mar 3rd 2009, 11:15
Joseph Muscat's credibility is going the same way as Alfred Sant's has gone before him. He never checks facts before he opens his mouth. The rubbish about education he churned out this last weekend has been corrected by facts. Results of a survey that have been in the public domain for months have been ignored by him. Now the news about EU funding puts the iceing on the cake. Here's new politics for you!!!
E. Vassallo
Mar 3rd 2009, 10:42
@Antoine Mifsud
The problems you have mentioned would exist be it EU or no EU. Your reasoning is illogical and does not make sense. I would go one step further-to whom we turn to with the influx of illegal immigrants had we stayed out of the EU? Partenership??naghzqu wahidna???
Antoine Mifsud
Mar 3rd 2009, 10:29
I am no MLP supporter, but definitely no longer in the PN's folds.
What was the price of being in the EU?
Sky high property prices for our youth? Illegals taking over the islands? Hold-ups on daily basis? Out of control inflation and rising costs of living?
Ah yes, but we got millions to spend now on ministerial and other big-wigs travels to Brussels and beyond.
Halluna.
Joseph Agius
Mar 3rd 2009, 10:28
Hey Joseph, How much would we have got from Partnership? You should know cause you presented and produced 'Made in Brussels'....but seems your contacts have vanished and you did not get the correct numbers now!
wally vella-zarb
Mar 3rd 2009, 10:22
The trend of the Net Balance over the last three years (bottom line in the table) does not seem to augur too well: -
2006 - €81,937,771
2007 - €21,338,104
2008 - €5,077,496
2009 - € ???
M. Catania
Mar 3rd 2009, 10:16
I hope that this table is not spinned by the MLP apologists. It is there to see for everyone that Malta has net gained from EU. We do not forget what the PL statements amongst that used to predict doom and gloom before the 2003 referendum. Amongst them was a certain Joseph Muscat.
Political life circles around principles and difficult decisions not around opportunistic spinning.
mario spiteri
Mar 3rd 2009, 10:15
Wow, Malta pocketed a grand Euro 5 million (just over Lm2 million) in 2008. If i recall correctly, PM Gonzi during the GonziPN election campaign stated that whoever wins (him or AS) would have the luxury of Euro 800 million in the coming 5 years to "play with". Well Year 1 has gone by with 5 million net positive balance. That a staggering 0.625% in about 20% of the 5 years!!!!!! Impressive performance GonziPN et al.
Manuel Mifsud
Mar 3rd 2009, 10:01
What do PL apologists have to say now?
Maybe they will follow on St. Thomas's footsteps. Now that they are seeing, perhaps they start to believe!
M Callus
Mar 3rd 2009, 09:56
Didn't Alfred Sant used to say that we stand to gain 1.5 million annually only? I forgot that MLP has become a strong Europhile country!!!
Phillip Muscat
Mar 3rd 2009, 09:42
Didn't our beloved Joe Muscat say that we have become Contributors, just a couple of weeks ago????
Do your homework before you speak Dr Muscat. You are doing the same mistakes of the one before you...