Malta continued to close the wealth gap with the EU last year, according to the latest statistics released in Brussels.
On EU accession in 2004, Malta was well below 75 per cent of the EU’s average GDP per capita but this rose to 83 per cent last year even though the island was hit by the economic and financial turmoil.
Although one has to bear in mind that the EU’s average was significantly lowered in 2007 due to the accession of Romania and Bulgaria – both poor countries – Malta’s situation improved significantly since 2008 when the country’s GDP per capita stood at 79 per cent of the EU average.
This means that in just three years the island managed to close the wealth gap with the EU by four percentage points at a time of economic downturn.
This achievement, boosted by an above average economic growth when compared to the EU, contrasts sharply with the situation of many member states that were practically in the same wealth category of Malta.For example, Slovenia last year had a GDP per capita of 85 per cent, two points lower than in the previous year. The same happened to Greece, Cyprus, Spain and Italy, which all saw their wealth gap with the EU average widen.
The 2010 GDP per capita statistics confirm Luxembourg as by far the richest member state with a GDP per capita of 271 per cent, nearly three times the EU average (100 per cent). The Grand Duchy is followed by the Netherlands (133), Ireland (128) and Denmark (127).
Malta is considered to be one of the wealthiest member states among the new entrants with only Cyprus and Slovenia having a better rating. Malta was last year considered richer than Portugal (80), one of the old members. On the other side of the scale, Romania (46) and Bulgaria (44) are by far the poorest member states.Although the statistics are considered to be positive for Malta, at least from the economic point of view, there is also a negative aspect.
The statistics confirm it will be difficult, if not impossible, for the island to qualify for the highest amount of EU funds in the next seven-year financial perspectives, covering 2007-2013. EU rules lay down that only member states with a per capita GDP of below 75 per cent of the EU average are eligible for the maximum amount of handouts. The statistics show Malta has significantly surpassed this criterion.
Negotiations on the EU’s next budget cycle are ongoing and are expected to wrap up by the end of next year.