Malta is not happy with what the European Commission has put on the table as discussions get under way over the next EU budget, covering 2014-2020.
In particular, the island has reservations about to the allocation of EU funds under the Cohesion Policy, which mainly supports Europe’s poorer regions to boost wealth and reduce disparities with the richer regions.
Malta’s Permanent Representative to the EU, Richard Cachia Caruana, spelled out the country’s position while addressing EU Foreign Ministers yesterday.
He said that although the Commission’s proposal of putting a ceiling (on how much money should be spent) was a good starting point, Malta was not satisfied with the overall proposal.
“We have serious concerns about the negative impact the Commission’s proposals as a whole will have on Malta, particularly in the area of Cohesion Ppolicy. This disproportionate impact will naturally be our main priority in the overall discussions,” Ambassador Cachia Caruana said.
In the 2007-2013 financial framework – as the seven-year budget is technically know – the EU invested a total of €347 billion in Europe’s regions under the Cohesion Policy. The funds were poured into a whole gamut of sectors ranging from transport and internet links to environment and education.
Malta has fared well, being eligible for the highest level of funds available. This was because the island’s GDP was still under 75 per cent of the EU average, the threshold.
The new proposal, however, puts Malta in a new classification, depriving it of access to the amount of funding that is put at the disposal of countries in low GDP categories.
Malta and a number of other member states, which are normally net beneficiaries of EU funding, are arguing that this is just a statistical imbalance as a result of the accession of Bulgaria and Romania – both very poor countries – which has lowered the GDP average in the EU. They are calling on the Commission to correct this imbalance.
During yesterday’s General Affairs Council, Malta detailed a number of points which it wishes to be addressed in the initial stages of the negotiations.
Among the points mentioned by Mr Cachia Caruana were the need to include tourism-related activities in the budget for smart and inclusive growth and to specify the distribution criteria to be used for funds destined for migration and internal security.
“Such criteria should be forward looking and take into account the specific geographic needs of member states,” he emphasised.
On other issues, Malta also made it clear that it does not agree with a proposal to extend the European Globalisation Adjustment Fund – a fund aimed to help redundant workers – to the farming sector.
“I have already referred to the negative impact of the overall Commission proposal on Malta and the creation of a new reserve for the agricultural sector will exacerbate the imbalance in the overall package.”
At the end of yesterday’s session, the Danish Presidency announced that it will be holding further negotiations in the coming weeks in order to try to close off the first round of discussions by June.
Member states have until the end of 2012 to agree on the details of the multi-annual financial framework.
Normally a compromise over this sensitive issue is not reached until the eleventh hour during one-to-one meetings among EU leaders.