The surprise Conservative Party electoral victory in the UK has sounded alarm bells in Malta as a promised referendum on Britain’s EU membership could happen when Malta is at the helm of the EU Council.
British Prime Minister David Cameron yesterday reiterated his electoral pledge to hold the referendum in 2017.
Malta favours the UK remaining an integral part of the EU.
Malta is scheduled to take over the six-month rotating presidency of the EU during the first semester of 2017. It should be followed by the UK. However, the outcome of the British elections has given rise to doubts on what may happen.
While expressing his “surprise” at the victory by the Conservatives, Foreign Minister George Vella said no one can really tell what will happen in the new political scenario.
Making it clear that relations between Malta and the UK are expected to continue to prosper during Mr Cameron’s second term, he acknowledged that the matter of EU membership by Britain could have some impact on Malta’s presidency.
“We have already raised this possibility with our UK counterparts and I hope this does not mean we will have to remain at the helm of the EU for a whole year instead of six months,” Dr Vella said jokingly. “Our counterparts have told us that by the time we will be occupying the presidency, the issue of whether the UK should still be part or not of the EU would have been settled,” he added.
Dr Vella pointed out that although the UK government said it wanted to renegotiate its relationship with the EU before if held a referendum, one still had to see what the UK was actually seeking to renegotiate.
“I don’t think the EU is going to open a Pandora’s box,” he said. “If the EU reopens negotiations with the UK, there will probably be others who would want to follow.”
For the Nationalist Party, the UK’s future in the EU is the most important thing to watch.
While congratulating Mr Cameron, PN leader Simon Busuttil said that for the PN the only concern was the referendum.
“This could possibly take place under Malta’s presidency of the EU. Britain’s potential withdrawal from the EU is not in Malta’s interest and certainly not in the EU’s. It would hit the rights of thousands of Maltese people based in the UK as well as many Maltese businesses there. Inversely, it would also create complications for UK nationals and businesses based here,” he said.
He expressed the hope that such complications could be avoided and that Malta’s strong relations with the UK would continue to flourish within the EU.
Apart from political complications and the fact that the UK is considered a close partner of Malta in EU council formations, the UK is also the island’s largest trading partner.
According to a recent study by a German non-profit foundation, Malta would face above average losses to its economy in the event of Britain leaving the EU.
Based on today’s GDP figures, it was estimated that a UK exit would cost the Maltese economy almost €40 million. In the worst case scenario, the fall in Malta’s GDP could be as much as 1.5 per cent.