There was still too much uncertainty about the form Brexit would take for Malta to assess its impact on various sectors, Prime Minister Joseph Muscat said yesterday.
Speaking to just under 200 anxious businessmen at the Malta Chamber of Commerce, Enterprise and Industry, he said that any assessment now would have to work out the sectoral impact for multiple potential scenarios – and would therefore not provide the clarity that businessmen in Malta were so keen to have.
“Let’s wait for a few months to understand the specifics of the UK demands,” he said.
He was replying to a question from Stefano Mallia, the vice-president of the European Economic and Social Committee and a rapporteur for the employers’ group, which suggested Malta needed an assessment similar to the one prepared by the Confederation of British Industry – whose president, Paul Dreschler, was the guest of honour at the seminar.
Mr Dreschler was pragmatic, noting most businesses were anti- Brexit but that they would – “as businesses always do” – adapt.
He noted that there were two issues: people and the freedom to trade. On the former, he said that CBI had made it clear that the British government should make an unequivocal commitment to allow those EU citizens already living in the UK to stay, as Britain needed the best talent no matter where people came from. There are 28,000 Maltese living in the UK, he said.
He speculated on the possibility that the UK and the EU would not strike a deal on trade, leaving the World Trade Organisation framework to work within.
“That would be very serious indeed, including for Malta. The UK is your fifth largest export destination,” he said, adding it took almost 10 per cent of Malta’s GDP, a concentration risk only shared with Luxembourg and Ireland.
Dr Muscat was asked if Malta would be able to attract companies for passporting – trade in all EEA States without the needing for permission from each – given that Lloyds of London had ruled it out. Declining to comment on any one company, he said it was clear that there was no problem with either Malta’s competitiveness or its legislation, but that there was an issue with its carrying capacity.
“It is clear that in certain parts of our offer, we lack resources, particularly human resources. And it is not just about bringing 150 expatriates here. Where would they send their children if there are no places in the schools? This is why we are coming out with the idea of another international school,” he said, adding that the government hoped to announce in the coming months another major insurance company relocating to Malta from outside the EU.