Structural and Cohesion Funds that Malta will eventually qualify for as an Objective 1 region of the EU would not "...increase the competitiveness of the Maltese Islands and the Maltese manufacturing and services industry in particular.
"Unless the framework conditions are in place, the funds allocated will not give the desired medium-long term spill-over effects within the Maltese economy." This is how FOI president Anton Borg opened his presentation at last Friday's conference entitled EU Accession - Challenges and Opportunities, organised by Ernst and Young at the Hilton Malta, St Julian's.
Mr Borg said that the indications are that "the two top priorities to be given under structural funding will be competitiveness and the environment. The FOI fully agrees with these axes but we would like to discuss how the monies would be allocated, particularly at a micro level.
"Ideally, the priority projects should have been discussed at length at the level of the MCESD during the first half of 2003. Regrettably, to this very day no detailed discussions have been organised among the social partners, despite our repeated reminders that this process should be encompassing, transparent and in full partnership mode.
"A discussion was only held once by MCESD when the Single Programming Document (SPD) was presented by Government after the decision was taken."
The FOI believes that "we need to address three major areas of priority as these are intimately linked to the future competitiveness of the Maltese economy:
¤ Filling the gap - basically addressing the infrastructure gap; and
¤ Designing a new strategy for the promotion of enterprise in Malta, based on research and innovation and e-business.
"The 'pilot period 2004-6' has to be used to show our European partners and the EU Commission that the funds were allocated by applying the concept of value for money and that the Maltese decision makers ensure full complementarity and synergy with other community or national initiatives, including Research and Technological Development, innovation, information society and lifelong learning."
Mr Borg concluded his presentation by stating: "When one assesses the experience of beneficiaries from other European countries, especially Objective 1 regions, it is evident that EU funds have made a positive impact on the economy.
"The magnitude varies from one region to another but the bottom line is that such funding is absolutely crucial to change (and without it, change would not necessarily have taken place or would have taken decades more). EU funding has given regions an array of opportunities to innovate and try new initiatives.
"In all cases, European funds have increasingly emphasised the need for working in partnership. This should not be the exclusive territory of a few bureaucrats working in conjunction with foreign consultants.
"The debate should be opened to all MCESD members as soon as possible, especially with regard to the more important funding priorities beyond 2006.
"The final objective of EU funding should be to stimulate competitiveness - by fully integrating Malta in the EU's Lisbon strategy, creating more jobs, more wealth for all and therefore enhancing living standards."