Malta is continuing to push for larger national contributions to be made to the EU budget, stressing that cohesion funds are an important tool for the development of member states.
If we are going to invest less in this policy we will be deepening the crisis
Speaking at a EU Foreign Ministers meeting in Brussels on the forthcoming seven-year budget, Foreign Minister Tonio Borg underlined Malta’s view of the EU’s Cohesion Policy as a tool for growth, investment and jobs.
The cohesion policy (also known as regional policy) is used to finance a wide range of projects and investments in EU member states aimed at boosting their economies.
Dr Borg recalled the European Council of June had recognised the reformed policy had to be strengthened “because this is a way out of the current crisis. If we are going to invest less in this policy we will be deepening the crisis”.
In this context, a joint message was presented by Poland on behalf of the Friends of Cohesion Group, emphasising that Cohesion Policy amounts should not be decreased.
The EU, which is expected to wrap up talks on the next EU budget by the end of this year, is split down the middle over the issue.
While Malta and most of the “new” member states are supporting the European Commission’s proposal for an increase in the budget in the next seven year cycle 2014-2020, the net contributors, such as Germany, France, the UK and The Netherlands, insist it should be frozen given the current economic scenario.
This position will mean that Malta and the other net beneficiaries would receive lower allocations than they enjoy at present.
Malta is currently also fighting its corner on another important aspect of EU funding, namely, to retain its eligibility on the maximum amount of funding possible – better known as Objective 1 funds.
According to EU rules, only those member states with a GDP of less than 75 per cent of the EU average are eligible for this type of funding.
Although Malta has surpassed this threshold, it is arguing that it should still remain eligible for maximum funds as its statistics were negatively affected when Bulgaria and Romania – by far the poorest member states – joined the EU in 2007.