Applying for EU funds can be a tough process. Sometimes, the rigorous vetting procedures and paperwork can be disheartening. But if you’ve ever applied for EU funds, you know how rewarding it is to finally be given the green light.
It is a special feeling to know that your project – which, in many cases, has no other means of funding - has been considered worthy of financing by EU taxpayers.
I had such a sensation the other day when my parliamentary secretariat was informed that the European Commission had approved our plan for the EU funds allocated to Malta for the years 2014-2020.
This is a big step. It means we can start issuing schemes and funds worth hundreds of millions of euros.
It means that Malta can embark on its next phase of EU-funded initiatives to bring the country’s development in line with that of its European counterparts.
Our role was to set the country’s priorities and prove to the European Commission that we could administer these funds responsibly. But what does this all mean for you?
Ultimately, it means a leap in our quality of life. The funds we will pump into the country over the next seven years will not only help the country reach its EU 2020 targets; it will also mean better infrastructure, greater opportunities and more economic growth. The first approval we received was for Operational Programme 1, a €717 million fund to be spent on the island’s development (ERDF and CF). In this case, the vast majority of proposed projects have already been identified following a long consultation process that involved various ministries, the Opposition and the public.
One of the biggest priorities we set for the country was research, innovation and ICT.
By 2020, Malta needs to be investing at least two per cent of its GDP in research and innovation. This will undoubtedly help create more and better jobs while giving the country the edge it needs considering our limited resources.
Jobs will be given an additional stimulus through specific funds worth €15 million for small and medium businesses (SMEs) in the first half of this year. Since these will be granted in the form of loans, the actual capital injection will be closer to a minimum of €60 million with the likelihood of that going even higher being a very strong possibility.
There is no point in generating jobs, however, if we cannot supply the necessary workforce. This is why we must also prioritise education, training and lifelong learning, which would, in turn, help to reduce unemployment and poverty. This is where other measures come in, such as the Employment Aid Programme (EAP) and Training Aid Framework (TAF).
Another priority area is energy, particularly alternative energy, since 10 per cent of our production must be from renewable sources by 2020.
These priority areas have now been approved by the European Commission. The next step is ensuring that we use up all the funds at our disposal.
Absorption of funds was a big issue when I came to office in March 2013. Six years into the seven-year period covered by the first phase of the funds (2007-2013), Malta had only absorbed 30 per cent of the money at its disposal.
By the end of last year we had already managed to take this figure up to 78 per cent. Our aim is to have covered all 100 per cent by year’s end, hopefully ensuring that not a single euro is lost.
How did we manage to improve the absorption rate so staggeringly?
We spent the past months following up every project to ensure it is completed within the stipulated time frames, taking overdue political decisions and improving poor administration practices.
Now that we approach the next phase of funding, we cannot repeat past administrative mistakes. This time round, we cannot spend two out of seven years with no funds being absorbed.
We need to hit the ground running to ensure there is enough time for projects to be implemented.
We are confident we can do this. We have already saved a year by immediately releasing certain schemes upon the European Commission’s approval.
The first 10 years of EU membership have been a learning experience for Malta. To make the most of EU funds, we must be vigilant at all stages.
It is sometimes tempting to view EU funds as overly complicated and bureaucratic but the opportunities at stake for the country are enormous. Scrutiny will always be part of the process and, as EU taxpayers, we should all insist on this.
The trick is to train people in administrative positions to be better equipped to master the process and help provide information and assistance to regular citizens to enable everyone to make the most of what is available.
Let’s not see EU funds as a challenge but an opportunity to improve people’s lives.
Ian Borg is Parliamentary Secretary for EU funds and EU Presidency 2017.