Malta’s EU financial surplus: €354 million

Malta has gained a financial surplus of €354 million in EU funds since membership 2004, figures published in Brussels last Friday show.

Between 2004 and 2010, Malta contributed to the EU’s coffers a total of €377.1 million and received €731 million, almost double, according to the EU’s 2010 Financial Report.

The new data quashes calculations made by the anti-EU lobby during the referendum that Malta was going to end up almost being a net contributor to the EU. The annual report shows Malta is by far one of the biggest net beneficiaries of the EU’s 27 members.

Last year, Malta contributed €61.2 million to the EU coffers while it received almost twice as much – €112.4 million.

The report shows that in 2010, Malta passed on to the EU €40.1 million as its contribution, calculated on its Gross National Income, and more than €17 million in VAT receipts and customs duties.

On the other hand, the biggest chunk of the funds received were connected to cohesion funds – a total of €66 million were used to improve the island’s infrastructure, including the re-building of new roads, new faculties at the University, the restoration of the bastions and the new MCAST campus.

Other large financial envelopes received include €22.1 million for national resources and €9.7 million for justice, security and citizenship, which include the EU’s financial help when it comes to irregular immigration.

Malta’s positive net balance in EU funds is expected to continue until 2013, the end of the current budgetary cycle, as more projects are expected to come to fruition.

During the current seven-year budgetary period, between 2007 and 2013, Malta negotiated an allocation worth almost €1 billion in EU funds.

Taking only 2010, Malta’s intake of EU funds amounted to almost two per cent of its Gross National Income, one of the highest among the EU member states, an EU official explained.

He added that the benefits of EU membership and the eurozone could not be calculated solely on the amount of funds a member state receives.

“While it’s a fact that money flows are more visible, EU membership is much more than that. Among many things, it’s also about freedom of movement, an integrated internal market guaranteeing more foreign direct investment, new rights and obligations and more clout in international affairs,” he said.

Negotiations on the 2014-2020 EU budget are soon expected to start with Malta already setting its sights on remaining a net beneficiary during this period.

However, there is still a long and complicated road ahead.

Malta EU Funds – 2004-2010 (million €)