It is sad to see the regular stream of unsubstantiated claims contained in government press releases on EU funding. They would have us believe that the previous PN government failed in the EU funding area and that Labour has turned this failure into a success.
How ridiculous can they get? Let us start at the very beginning.
Firstly, however much Labour would like us to forget this fact, we only have EU funds because we are a member of the European Union.
Secondly, we are only in the EU because the country, led by the PN and with Simon Busuttil at the head of the information campaign, rejected Labour’s unanimous call – in successive elections – for Malta to stay out of the EU.
Thirdly, the €2.4 billion that Malta was allocated between 2003 and 2013 (for the period 2004 to 2020) were all negotiated by successive PN governments. These are funds which, under EU rules, will continue to be absorbed until 2022 (two years after the end of the funding period under the so called N+3 and N+2 rules).
So we need to keep in mind that none of the EU funds being spent today were negotiated by Labour and none of the EU funds that will continue to be absorbed until 2022 will have been negotiated by Labour.
Past PN administrations can be fairly criticised for many things but negotiating EU funds is not one of them.
It is also time the record is set straight on the management of EU funds.
The absorption rate of EU funds increased despite the Labour government and not because of it
EU funding is allocated after years of tough negotiations before a particular seven-year expenditure period starts. This is why the funds for 2014-2020 were negotiated between 2011 and 2013 under the PN government. Member states, such as Malta, then have nine years to commit and absorb the allocated funds.
The claim in the editorial of Times of Malta of January 30 that the absorption rate of EU funding under Labour increased from 30 per cent to 78 per cent was “quite a feat” has to be put in context, a context which also includes the obvious fact that expenditure on long-term projects takes place towards the end of the project and not at the beginning. Without such context, the public risks being misled by Labour’s pseudo major achievement headlines.
Notwithstanding the lengthy period available for absorption of funds, every step needs to be taken to start spending the money as soon as possible. Malta was, in fact, the first member State to reach agreement with the European Commission on what its 2007-2013 funds were to be spent on (referred to as operational programmes).
On Labour’s watch, unfortunately, Malta has not been able to repeat this feat for the 2014-2020 period so, comparing like with like, we have actually slipped back rather than accelerated.
The operational programmes for 2007-2013 were approved in 2007, with calls for project proposals being issued immediately after, that same year.
Every EU member State spends the first couple of years committing the money allocated to its various funding programmes.
This is a lengthy process because it involves public procurement and the creation of a framework for the development of each project to ensure that EU funding, which is ultimately public money, is spent in the best and most transparent way possible.
All this is in accordance with EU funding obligations.
How have we fared so far?
The deadline to begin to disburse funds for 2007 projects was 2010, the funds for 2008 were disbursed by 2011, those for 2009 by 2012, the 2010 funds by 2013, the 2011 funds also by 2013, the 2012 funds by 2014 and 2013 funds by the end of this year. This is how the N+3 years and N+2 years rules referred to earlier works.
The Labour government was elected in 2013 at the time when large and substantial disbursement targets were already in place, with the groundwork already having been done by the PN government.
It was therefore obvious that the absorption rate of EU funds was going to increase as the available period for expenditure drew to a close.
The real feat, negative, unfortunately, would have been if Labour had not managed to increase the absorption rate. In my opinion, the absorption rate increased despite the Labour government and not because of it.
Labour is simply trying to fudge facts and take the credit for things it had little influence on.
Instead of trying to pass off the achievements of others as its own, Labour should focus on the work it still needs to do.
It needs to solve the human resources problems in this sector, such as the delays in the appointment of more senior personnel who are crucial in ensuring the successful implementation of EU funding projects.
Due recognition needs to be given to all public officers working in this sector who strove to achieve Malta’s relatively high absorption rates of EU funds over the past decade.
Ministers might wish to boast they are doing everything on their own but the day-to-day running of EU projects is ultimately in the hands of these much-maligned public officers who deserve our respect and our support. They deserve better.
Roberta Metsola, an MEP, is shadow minister for European and foreign affairs.
Twitter: @RobertaMetsola