The good, bad and ugly

The debate that foreshadowed Malta's joining the European Union on May 1, 2004 did not come without good doses of both fear and hope, possibly in equal measure. These are some of the major issues that arose along the way.

Euro

The introduction of the single European currency in the smoothest of ways with the least impact possible was probably the single biggest achievement of the past five years. It also helped introduce discipline in the management of public finances: a bone which the government will have to contend with in the months ahead as it now finds itself with the third largest deficit in the eurozone.

Food prices

A derogation to keep food VAT-free helped avoid a rise in the price of foodstuffs. The removal of levies on food was welcome news for consumers with notable price reductions in imported pasta, milk and wine. However, domestic food producers lost their protection and faced stiff competition. The market has had to consolidate and some manufacturers closed down. As for meat and poultry products, the imports were not cheaper.

Medicines

A sharp rise in prices was also avoided in the case of medicinal products in part thanks to the retention of the zero VAT rate, which Malta will continue to enjoy. However, teething problems because of the obligation to register medicines led to serious shortages in the first four years. The problem was subsequently solved but medicine prices continue to remain on the high side when compared to those in other member states.

Roads

The last extensive batch of new roads to be rebuilt, those leading from Luqa to Żebbuġ and Mosta, were financed by the Italian Protocol. A number of projects along the Ten-T network from the Freeport to Ċirkewwa have long been identified.

So far, the government managed to secure EU funding on a few other projects such as the repair work on the Manwel Dimech bridge on the Regional Road and the reconstruction of the stretch in Ħal Far, which leads from the Peace Lab to the Freeport and the rebuilding of the road between Victoria and San Lawrenz. But the Ten. T investment, the likes of which Maltese roads have never seen, are there and motorists can only hope that the next five years will see an extensive road-building programme to upgrade the major arteries.

Shipyards

The empty docks are possibly one of the more visible effects of EU membership. In December 2008, the transition period during which the government could subsidise the shipyards came to an end. Six months before, the government had opted for privatisation. To make the company more attractive to potential buyers it sent the workers home for good with a hefty pay-check in their pockets.

While taxpayers may have been relieved of the burden to subsidise the shipyards, the country has lost its only heavy industry and an important skills base among its work force.

Brain drain

EU membership has provided immense opportunities for work abroad. The employment of hundreds of Maltese nationals with EU institutions was only one aspect in the whole picture. Many others opted to further their studies in European universities while young professionals sought better-paid jobs.

The opening of these opportunities benefited individuals but also led to a critical situation in certain areas of the job market.

The brain-drain has had a negative impact in some sectors, the most notable being doctors.

Schengen

After four years of membership, Malta joined the Schengen area, which loosely translated means passport-free travel within EU borders. It meant less red tape but possibly longer queues as the "EU national" lines at airports now cater for passengers hailing from 27 countries rather than the original 15.

Hunting

With spring hunting banned and trapping completely ruled out, membership was a bird lover's paradise and a hunter's bane. The countryside may sound quieter but illegal hunting still goes on.