Prime Minister Joseph Muscat yesterday welcomed the conclusions of the European Council summit, saying they were “in line” with the central planks of Labour’s electoral platform.
His first Brussels appointment as Prime Minister saw EU leaders discussing youth unemployment, female participation, economic growth and bureaucracy.
It was also decided that the next summit, in May, would focus on energy, which was a key issue at last week’s Malta election.
Dr Muscat said he was pleasantly surprised by the “balance” demonstrated by EU leaders during discussions.
“Many thought there would be a big divide between austerity and more spending but there was a sense of convergence towards common sense,” he said at the end of the summit.
He said austerity alone could not achieve economic growth but spending must be targeted to stimulate economies and create jobs.
Dr Muscat welcomed the fact that the summit’s conclusions were “in line” with Labour’s electoral manifesto, including the Youth Guarantee, which has been unanimously welcomed, and the fight against bureaucracy.
The Council commissioned a review of bureaucratic processes as would also be done in Malta through the appointment of a Commissioner for the Simplification of Rules, he said, adding that Malta aimed to introduce the Youth Guarantee scheme by the end of the year or the beginning of the next.
The Prime Minister said he was also impressed that EU leaders were “well-briefed” about the way the situation evolved in Malta. He was asked to send his regards to former Prime Minister Lawrence Gonzi and did so immediately via telephone, he said.
The Council focused on youth unemployment and economic growth, calling for “differentiated, growth-friendly fiscal consolidation”, restoring normal lending, promoting competitiveness and modernising public administration.
It also called for renewed efforts to improve the efficiency of tax collection and tackle tax evasion, while shifting taxation away from labour to increase employability and competitiveness.
Significantly, however, it also mentioned energy, which will be discussed in the first of five scheduled thematic summits on aspects that contribute to economic growth and European competitiveness.
“Europe needs investment in modern energy infrastructure and the challenge of high energy prices which hamper competitiveness needs to be tackled,” the European Council said, in line with Labour’s manifesto.
However, it added that no EU member state should remain “isolated from the European gas and electricity networks after 2015”, raising questions about whether Dr Muscat’s ambitious gas project fell within this strategy.
Asked about this point, Dr Muscat said he had already met Energy Minister Konrad Mizzi to discuss the timetable of the Government’s plans which he promised would move in constant transparency.
He acknowledged that Malta had to be part of the EU energy grid and that Mr Mizzi would be seeking clarifications from the Italian government about the time frames regarding the interconnector since Standard & Poor’s had said it would be completed in 2015 not 2014.
Dr Muscat praised Dr Gonzi for ensuring in 2011 that Malta would not be left out of the European grid and reiterated that the interconnector with Italy and a possible gas pipeline were part of the energy mix that the Labour Government would provide.
“I’m not worried... If anything I’m pleased that the EU is emphasising that no country should be left out. The more options available, the more advantageous and favourable for Malta,” he said.
Dr Muscat yesterday also met with European Commission president José Manuel Barroso after a meeting with European Parliament president Martin Schulz and the President of the European Council Hermann Van Rompuy a day earlier.