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Gonzi’s landmark “double win”

I refrained from commenting on the landmark EU budget deal clinched by Prime Minister Gonzi before reading a technical opinion about it. This was provided in  The Sunday Times through an interview with Ms Marlene Bonnici, head of Malta’s EU Permanent Representation in Brussels.

Ms Bonnici is not a politician. She is an able civil servant who was given this job after the a most unholy coalition between the Opposition and renegade MPs from the Government side brought about the axing of Richard Cachia Caruana from that position.

Malta is fortunate that Richard Cachia Caruana is not a petty person. In spite of the aforementioned act of dastardliness he still accepted the invitation of the Prime Minister to coordinate Malta’s team of experts during the tough negotiations that have been going on since, at least, last November. TCachia Caruana’s  great expertise in the matter contributed greatly to the success achieved for Malta by Prime Minister Gonzi.

Let me go back to the interview with Ms Bonnici.

She described the deal as a “double win” (a phrase I borrowed for the title of this piece) and explained why she used this description.   These are some of the more important points that result from the interview.

  • The EU reduced its budget.
  • This notwithstanding the budget allotted to Malta was increased.
  • Malta lost its Objective 1 status. This is the status of those countries meriting more help than others because their financial situation is not as prosperous as that of others. Malta lost the Objective 1 status because its “GDP has risen while that of several other member states has plummeted”.
  • This notwithstanding Malta got more funds than it would have been entitled to had it remained an Objective 1 country.

This is why Ms Bonnici called the achievement of Prime Minister Gonzi  - that is a EU budgetary contribution of Euro1,128,000,000 - a “double win”.

One should also remember that Prime Minister Gonzi  had negotiated the EU budgetary allocation for Malta for the 2007-2013 budget.  According to a report in this Sunday’s  Il-Mument, when one factors in the 2007 allocation to Malta, together with additional funds that were given during the years and tops it with the present allocation the figure with be an astonishing €2.18 billion. This figure quite naturally dwarfs any other figure ever negotiated by any other Maltese politician. This is by no stretch of the imagination a mean feat.

It is positive that this “double win” by Prime Minister Gonzi was welcomed by all shades of blue, red and green.

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Eric Soames

Feb 13th, 13:48

'Hard to imagine what this has to do with a priestly mission.': Amen.

Francis Saliba M.D.

Feb 14th, 08:36

@ Victor Laiviera & Eric Soames.

Fr J Borg exercises his priestly mission in church, his journalist mission on The Times and his education mission at the University. You only show signs of being acquainted with his journalism. Please try to confine your comments to aspects tenuously within your grasp.

Eric Soames

Feb 14th, 11:51

Francis Saliba M.D.: I say it as I see it. I saw a comment I agreed with and voiced said agreement. So no matter what this Reverend Gentleman's other missions are, it's this aspect [geddit?] that is, and has been, visible to me and because said R G writes so prolifically, I have a more than tenuous [not the word I would use but riffing on your poor choice of phrase] on it.

Eric Soames

Feb 14th, 14:29

PS: Tenuous 'grip', obviously.

joe micallef

Feb 13th, 09:52

Not yet mate-Malta is made up of intelligent people irrespective the colour they politically follow
Your remark on 'all these comments' places intelligent blue/green/red comments in one sour basket.
If your reference was purely aimed at MLP comments then sour grapes are yours to chew!

B Ellul

Feb 13th, 07:40

'A new PL government will spend wisely!'

ISTHI! Now and Now you accept that we'll be getting money from the EU for all to spend. I remember well that we'll be getting only 1.5 million... Prosit MLP...

Joe Bonanno

Feb 18th, 00:23

B Ellul
The PL has a track record of wise spending. The PN doesn't. The PL produced surplus budgets and left a king's ransom when they left in 1987. The PN only produced deficit budgets and left a mountain of debt as of December, 2012. Eventually, Malta will be a net EU contributor. Then what? More debt on top of the already onerous debt burden. That's your "Sound Finances" and Money-no-Problem.

P Pace Balzan

Feb 12th, 16:34

Yes B Ellul, we are in the EU. Infact we are like a minnow in a whale's mouth. (Buzullieqa f'halq balena)
.
Unfortunately the minnow is blind due to the darkness of the whale's mouth and just like you, and as you claim JM, it thinks that it has a favourable net financial position - however the claimants have never presented one single report to the people proving their claim.

joe micallef

Feb 12th, 16:56

He He!!
Gonzi will soon have his turn going round the carnival stands following the 9/3/13 election!
What Gonzi achieved in brussels is normal buisiness to any party in Government - the least expected from the PN when availing themselves a euro 500 hike in salary with a pittance of COLA to the rest of the citizens since 2008
And paying dearly for dirty oil-now we wait for the amnesty outcome!

Eddy Privitera

Feb 13th, 09:09

B Ellul: Why hasn't the government ordered a COST-BENEFIT ANALYSIS on Malta's EU membership by an independent source ? I tell you the reason why. Because Gonzi knows that the end result will explode the myth of EU funding ! If you wish to have more details check what I wrote in The Times on EU funding in October 2011 !

B Ellul

Feb 13th, 15:46

Eddy, Analysis by YOU. hu dahhakx...ma tarax ha nahli il-hin naqra il-hmerijiet!

S. Vella

Feb 15th, 08:10

I read Eddy's analysis. It only contained the usual CNI negative propoganda with no understanding of basic economics and some outrageous statements. The indirect effects on our GDP from EU and Euro membership were for example completely omitted.

You can't expect much from a Mintoffjan.

P Pace Balzan

Feb 12th, 14:23

The Maltese would be happy once they know, both in monetary terms and in project terms, the true absorptive capacity of the amount allocated to Malta by the EU.
.
As things stand Malta is directly contributing to the EU budget app Eur60m pa. The amount in question equates to max of Eur162m pa.
.
I do hope that Malta has the knowledge,capability and capacity to actually utilise the full amount .
.

Joseph Camilleri

Feb 12th, 08:56

With an election looming closer, and with PL set to win, I would have expected you to light a candle of thanks since none in the PL rank have the credentials to get this sort of deal.
Also, saying it how it is, is not propaganda. Propaganda is making it seem it is. You may be in a better position to verify this.

Austin Vella

Feb 12th, 09:57

Just because Fr. Borg happens to be a priest does not exclude him from commenting on very relevant issues without keeping the "Church's respect and Authority" out of the agenda. Mr. Laiviera, you may disagree with Fr. Borg's comments vis-a-vis the "double win" but please support your case with some intelligent arguments and not this outdated anti-clericalism.

B Ellul

Feb 12th, 11:47

Victor

What's wrong with Fr Borg praising what has been achieved.... eh wait... Joseph and Louis would have done better.... anzi wait.... if for them we would have got NOTHING simple because we won't be part of the EU!

Victor Laiviera

Feb 12th, 13:01

Just one "small" example. Nowhere does "Fr" Joe Borg tell his readers that the €1.128 billion is the GROSS amount and, after deducting Malta's various contributions, the NET amount will be about €627 million spread over 7 years.

Half-truths are worse than lies.

B Ellul

Feb 12th, 15:24

.. and ALWAYS remember that if it was for your JM and LG.... that would be ZERO. ZERO EUROS. That is the truth and only thruth, and not the BS of your leader with the EU flag behind him and his blue ties and blue background

Mr Joe Borg

Feb 12th, 15:46

Dr Joseph Muscat and also Dr Toni Abela and other Labour spokepersons showed that they are happy that the deal was reached and described it as something positive for Malta. They added no its and buts. Victor Laiviera, on the other hand, seems not to be happy. He has a different position from Dr Muscat and is coming up (Laiviera not Muscat) with all sorts of excuses.

Andy Farrugia

Feb 12th, 18:05

@ V Laiviera

"And some people wonder why the Church is losing the respect and authority it used to have in Malta."

What sheer idiocy, Laiviera! And what has the Church got to do with what any individual writes or says. Is Borg representing the Church? Definitely not? Do his views reflect the official positions/pronouncements of the Church? No evidence of that! Yours is latent anti-clericalism.

Claudia Spiteri

Feb 12th, 18:13

It is still the amount at our disposal to spend on various things. The money we pay to EU is not deducted from this sum but taken from VAT etc..

David Farrugia

Feb 12th, 20:41

Claudia, you're wrong on both!

B Ellul

Feb 13th, 07:37

Maybe you should ask Alfred Sant for his calculator!

Francis Saliba M.D.

Feb 11th, 18:02

@P Sciberras

Common sense should tell you that actually increasing the EU allocation for Malta in the face of an over all reduction elsewhere proves that Malta's investment in our delegation in Brussels is a wise investment. You may just as well switch off your calculator.

Franco Farrugia

Feb 11th, 18:24

'For keeping Malta's delegation in Brussels'. Why? Is Labour going to take us out of the EU? Because only something like that can happen for the Delegation to leave Brussels.
Question of sour grapes, methinks.

John Grima

Feb 11th, 19:21

Even if Malta was to leave the EU, we would still have to have an embassy in the EU so not much savings there then.

Carmel Camilleri

Feb 11th, 20:08

Malta's delegation will stay in Brussels whatever happens, because it is in Malta's interest to stay there. So if Malta got nothing from the EU it still has to pay for its presence.

B Ellul

Feb 12th, 11:44

P Sciberras

Another very poor comment....

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