Update 4: Verheugen says Malta is net beneficiary

EU Commissioner for Enterprise and Industry Gunther Verheugen this morning said that Malta was a net beneficiary of the EU, a statement that was reiterated by Prime Minister Lawrence Gonzi.

Dr Gonzi hoped that Mr Verheugen's statement would close, once and for all, the debate that has been going on in the country about the issue.

Addressing a conference on business success and the global economic recovery organised by the Commission's representation in Malta and the Malta Business Bureau, Mr Verheugan called for one voice and a common EU position to combat the global financial crisis.

He said it was extremely important to have a strong and united EU.

“We need to solve the root of the problem in the banking structure. We need one voice and a common position.”

SMEs, Mr Verheugen said, had the strongest growth potential and the only way to give people the chance to find a job was to strengthen them.

SMEs were the backbone of the EU economy as only 30,000 companies in EU, including 43 in Malta, were not SMEs.

He said that although circumstances were very difficult and a crisis was being faced, doomsday scenarios were highly exaggerated.

“We are not expecting the end of the world and this crisis will be overcome.”

The scenario that would follow, he said, would be very different and there would be more competition.

Dr Gonzi said that Malta was not only getting more than giving out of the EU - it was also achieving from being part of such a big entity, which had been made stronger by the economic scenario.

For the radically deteriorating global scenario was leading to certain types of economic and global interventions which were previously unthinkable.

He said the his government’s approach pivoted around the importance of making sure that Malta was stronger and more competitive when it emerged from the crisis.

The Maltese economy, he said, was still being restructured and although some people told him this was not the time to change because the waters were too troubled, he disagreed.

Reforms, Dr Gonzi said, needed to take place now. These included the dismantling of monopolies.

He stressed the importance that more research and innovation took place in Malta and invited the Chamber of Commerce and Enterprise to get the business community to work together.

Dr Gonzi also reiterated his commitment to education saying: “Stop telling me not to invest in education or to stop stipends. We will continue to spend every available euro cent in education because this is essential.”

Earlier, the commissioner visited Dr Gonzi at Castille and told him he was grateful for the constructive and positive approach Malta has had in EU institutions.

The commissioner also had meetings with President Eddie Fenech Adami, Finance Minister Tonio Fenech and Opposition leader Joseph Muscat.

Mr Fenech described Mr Verheugen as an old friend of Malta who had helped the country a lot during the accession period.