Malta gets over €1.1bn from new EU budget
Gonzi was last to leave EU budget negotiation table
Malta will benefit from more than €1.1 billion of new EU funds in the next seven-year budgetary period between 2014 and 2020.
Through the deal, the EU finally accepted all of Malta’s arguments to be compensated for its ‘natural handicaps’, particularly due to its small size and isolation from the continent.
In fact, the island ended up with a deal twice the size of what was originally put on the table.
Visibly tired but satisfied at the end of 25 hours of round-the-clock negotiations, Prime Minister Lawrence Gonzi proudly announced that Malta managed to secure €1.128 billion in new EU funds.
“We managed to convince our partners that what was put on the table for us – €680 million – was not good enough. We kept insisting all along the way and now we are proud to end up with €1,128 million.
“This will be another massive boost to our economy through which Malta will make the next leap forward,” he said.
Despite the long negotiations, with EU leaders having even to skip sleep, Dr Gonzi was the last to leave the negotiations table. European Council sources said: “Malta was the one that kept the deal open until the end as the Maltese Prime Minister keep insisting on more compensation.”
Asked about this, Dr Gonzi said he “wanted to do everything possible to get the best deal for Malta”.
The new 2014-2020 deal puts the island in a better position than that of 2005 when the current budget (2007-2013) was negotiated. In 2005, Malta had negotiated an €855 million deal.
The new agreement means that Malta will get almost €2 from the EU coffers for every €1 it contributes.
Malta’s success in clinching such a good deal in this two-day summit becomes even more significant when the whole European scenario is taken into account.
For the first time in the EU’s 56-year-long history, European leaders have agreed to cut spending to just one per cent of the EU’s GNI, that is by some €40 billion, when compared to the 2007-2013 period, to €908 billion.
This was a clear win for the net contributors, or the biggest paymasters – led by the UK, that were adamant on an austerity budget in line with severe cutbacks they had to impose at home over the past years to keep their economies on course despite the economic downturn.
Among the details given by Dr Gonzi on how the €1,128 million will be divided, he said that €914 million would be dedicated to cohesion policy and agriculture and €110 million will go to Gozo.
Malta also acquired funds under the Connecting Europe Facility with €63 million earmarked to build a gas pipeline with Sicily.
EU Budget 2014 - 2020
Cohesion policy - € 776m
Agriculture - €138m
Migration/internal security/education and fisheries - €120m
Connecting Europe Facility/ research/environment - €94m
Total EU funds - €1,128m
Contribution by Malta - €501m
Net balance - +€627m
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31 Comments
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m farrugia
Feb 10th, 16:11
prosit dr gonzi & richard cachia caruana, you make us feel proud to be maltese unlike jpo, pl and bella compagnia who out of jealousy voted for your removal
m farrugia
Feb 10th, 16:09
din malta taghna ilkoll mela it tlellix ta karrozzi, tined u banners li jgibu dan l-isem. minn dawn il fondi li gew biss bis sahha ta gvernijiet tal pn,ha jerga jgawdi il poplu malta kollu fl-edukazzjoni, infrastruttura, spazji muftuha, sahha (sptar gdid tal cancer diga inbena minn fondi ta leu) u kull min bxi mod jew iehor involut fit turizmu ghax dawn il progetti ha jkomplu isebbhu lil malta
m farrugia
Feb 10th, 16:04
din sustanza zgur, mela il gimmicks ta taht it tinda li jgibu dan l-isem. u waqt fuq dan is suggett, nixtieq ma hafna ohra nuri l-ghadab tieghi ghat tinda li biha il pl hadu parking ta xi 60 karrozza ghal gimgha shiha fil mosta u qatlu il business, ta min iridu vicin biss. vera toghma zghira ta l-arroganza li jimxi biha il pl kieku inhalluh jitla fil gvern. diga dan deher car fil kaz ta anglu
Joe Bonanno
Feb 10th, 15:37
The per annum amount will be 89.5 million, not enough to cover the annual interest servicing payments on the debt of 150 million. Meaning the PN will have to borrow to cover the shortfall on this growing expense and other recurrent costs. Hence, the debt level will grow and concomitantly the inevitable downgrades. Good work PM. Sound finances indeed.
Iris Baitrman
Feb 10th, 15:21
Looking at the picture who is going to kiss who first? i think Gonzi he got more then he bargain for. good luck to him, HE WHO DARES WIN!
anthony smith
Feb 10th, 11:52
wish i had a slot machine like this put 1 in get 2 out.were as the uk puts 2 in and gets nothing out thats why we want out of the European union.
Joe Tabone
Feb 10th, 11:17
Well done Prime Minister, a true Statesman working in the interest of the WHOLE country!
m farrugia
Feb 10th, 18:15
oh yes malta taghna ilkoll already
S.M. Cuschieri
Feb 10th, 09:58
Phew!! That was a great bit of wheeling and dealing from our PM......Well done and thank you :). Not knowing what the upcoming election future holds, you still acted unselfishly and laid the hard road ahead for a Labour Government, if it makes it. That is what I call loyalty to a country that you have governed for the past 25 years.
Joe Bonanno
Feb 12th, 02:12
Loyalty to the country would entail leaving something behind for posterity other than a mountain of debt. I suppose that as in 1971, the PL will have to clean up the fiscal mess that the PN leaves behind. Can't the Nationalists ever govern without going so deeply in the hole? But if you motto is" Money-No-Problem" and "Let our children and their children pay the debt" what can you expect
Mr Roderick Cutajar
Feb 10th, 09:41
Let's hope some of it will go towards the restoration of Malta's heritage, especially the numerious abandones forts such as forts Campbell, Mosta, San Anard, Ricasoli, Madliena etc...
Mr Roderick Cutajar
Feb 10th, 09:39
Well done, I'm impressed!
louis farrugia
Feb 10th, 09:26
U kemm ser naghtu ahna lil Europa??
Larkin Zahra
Feb 10th, 10:35
If you actually read the article, you would know that we will be contributing around Eur500 million from our coffers, i.e. we are receiving 2eur for every 1eur spent!
Matthew Giordmaina
Feb 10th, 11:03
read the whole article Malta will contribute 501 million meaning we do not have the net amount of 1.1 bn
Patrick Zammit
Feb 10th, 14:30
Many are choosing to ignore that we had to fork out €1.2 billion (to date) to shore up corrupt/irresponsible EU banks and governments. We also spend about €70 million each year to implement EU laws.
Joseph Camilleri
Feb 10th, 01:18
Prosit Prime Minister, and a big thank you from a very grateful Maltese citizen.
Ronnie Callus
Feb 10th, 08:38
Proset Dr.Gonzi li ghamilt xogholok Ghalhekk intelewhom fil-Gvern il-Ministri,biex jirrapprezentaw lilna ccittadin.u anke jissorveljaw li flusna jintefqu sew Dak li wiehed irid jghid Joseph u mhux qiesu li haddiehor mhux kapaci aktar minnkom.Hadd mhu indespensabbli daqs kemm ma'kienx l-RCC.Hemm bzonn li ahna nibdew nkunu ghaqda wahda ghat-tajjeb u daqstant iehor kontra l-hazin (kurruzzjoni sfrenat
gil falzon
Feb 10th, 00:57
It is unbelievable that whilst every other EU state in the south is currently indebted and now in severe crisis that Malta continues to plod along unscathed. What a great success we have made out of a simple rock in the Med.
Mr Tony Gatt
Feb 10th, 15:12
Well if somebody keeps pouring billions into Malta's coffers it's hardly a miracle is it?
michael pace
Feb 10th, 00:48
What a sweet DEAL for MALTA-------- GONZI You have excellent negotiating SKILLS GO MALTA VIVA MALTA
L Zammit
Feb 10th, 00:21
Bravu Prim. Malta warajk.
HENRY FENECH AZZOPARDI
Feb 10th, 00:00
@ Eddy Privitera Please note and keep records of the figures quoted so that you do not have to quote unfounded figures from anyone.
Dawk huma il par idejn sodi
Victor Calleja
Feb 9th, 23:23
So not 1.1 billion after all but 627 million for seven years or 89 million per year.
Ok very good, now a Labour government to spend them wisely.
michael pace
Feb 10th, 08:40
YEA RIGHT PN negotiates the deal and Labor party spends it
L Zammit
Feb 10th, 15:42
Nhar is-Sibt kien hemm ragel li rrimarka lill-Prim "Oqghod attent biex Hobz il-biezel ma jeklux l-ghazzien"
Joe Bonanno
Feb 12th, 01:59
Michael Pace
Man, you have nerve. After MLP left the PN 400 million Maltese Liri in 1987, assets that the PN sold for peanuts to cover their deficits and still being so incompetent that they're leaving 5 billion in debt. If you read what Gonzi got it's 89.5 per year. The interest on the debt is 150 million a year. So in actual fact the PL will have to keep paying for the PN's incompetency.
Joe Bonanno
Feb 12th, 02:04
L Zammit
You are so right. The MLP left a treasury brimming with funds, many state assets and almost no debt. EFA then squandered it all and began his borrowing binge. Where would Malta be if the MLP was as irresponsible as the PN? The MLP saved all this money and what happened, the PN came in and as in most cases of lazy layabouts, they spent the money that someone else worked hard for.
David Scicluna
Feb 9th, 23:13
Get the net value, divide by seven, remove the inflation value and than compare like with like.
Pieter vandorp
Feb 9th, 22:53
You should be glad Malta you will be receiving alot more eu funds from us then you'll be putting in. Well done.Lets hope you use the funds wisely stating with the run down Gozo hospital and the dreadful roads.
Phil Zammit
Feb 9th, 22:52
That Malta has "Natural Handicaps" is not the best choice of words particularly since the recent comments about the caliber of politicians from small EU member nations.
Let's, for the sake of national pride, chalk it down to 'isolation from the continent' :-) :-)
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