Malta has made no progress in its efforts to retain its EU funding levels in the bloc’s next seven-year budget and it faces an uphill struggle to get what it wants.

The opening scenario so far does not augur well

As member states prepare for the looming battle over who gets what, culminating in an EU summit in Brussels later this month, EU sources told The Times that Malta was still far from reaching its targets.

“So far the Commission has rejected Malta’s request to be treated as a special case. However, it will now depend on what member states are ready to accept and the coming few weeks are crucial,” a source said.

A few months ago, Malta said it wanted to keep the same level of funding it currently enjoys and to remain eligible for the highest amount possible – known technically as Objective 1.

According to EU rules, however, Malta lost its eligibility for Objective 1 status when its GDP average surpassed the threshold of 75 per cent of the EU average.

Malta argues that this is due to the statistical effect that occurred with the entry of Romania and Bulgaria – the poorest EU member states – which lowered the EU’s average GDP.

The island insists it should be compensated for this but both the European Commission and the Presidency have so far rejected this claim.

During the current seven-year budgetary period – 2007 to 2013 – Malta received about €1 billion worth of EU funds, following the package negotiated in 2005.

The source said it would be hard for Malta to be granted the same amount again in the next budgetary period: “In the current economic scenario dominated by austerity, it will be very difficult for Malta to obtain another billion euros.”

Today sees the start of bilateral negotiations between member states and the office of the President of the European Council, Herman Van Rompuy, when horse-trading between member states will be at its fiercest.

“It’s during these talks that a clearer picture should start to emerge,” the source said. “However, the opening scenario so far doesn’t augur well.”

A few days ago, the Commission, which usually coordinates the budgetary talks, dismissed a proposal by the EU’s Cypriot Presidency to cut the budget by €50 billion overall on the original Commission proposal. But the Commission said this was not adequate for the EU’s future needs.

While this was not a favourable suggestion for the member states seeking more funds, including Malta, the proposal did not go far enough for those member states seeking cuts, particularly the net contributors such as Germany, France, the UK and The Netherlands, which are requesting a €200 billion cut.

Several of the member states that contribute most to the EU’s budget have already threatened to use their veto if the budget is not frozen.

For a deal to be reached, all 27 EU member states must agree to it.

What’s next?

November 6: Presidency starts bilateral negotiations with member states.
November 20: Meeting of EU Foreign Ministers on budget.
November 22-23: Extra­ordinary summit of heads of State and Government

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.