The Chamber of Commerce and Enterprise and the Federation of Industry last week signed a Memorandum of Understanding paving the way for the organisations' eventual merger.

The MoU was signed in the presence of Prime Minister Lawrence Gonzi who said that the merger will make the unified body more effective with a stronger voice.

"These organisations have understood the crucial times our country is facing and they have taken on board the need for change," he said.

He added that the Government together with the two organisations, is also going through the necessary steps to ensure that all required legislative amendments would be enacted.

Chamber president Victor A. Galea said: "Intense discussions were held over the course of my two-year presidency. Sectoral interests needed to be addressed, tradition needed to be guarded. There was also reluctance to change which meant that compromise had to be sought." Mr Galea also said that a new statute was drafted that will strengthen and ensure that the qualities in both organisations will be exploited to mutual advantage.

FOI president Martin Galea underlined the federations council's belief in this merger: "There are synergies that can be derived from the consolidation of resources, bringing about a larger and stronger organisation enabling us to better serve member's demands, particularly at the sector level, giving the industrial and commercial sector a louder voice than ever before."

The MoU maps out the next steps over a six-month period: a due diligence process in both the financial and legal aspects of the organisations as well as the necessary approval of the membership base through extraordinary general meetings of both the Chamber and FOI.