The celebrations marking the 38th anniversary of independence a week ago was an opportunity for a number of persons to focus on the decision that we have to take in the coming months as a country regarding Malta's membership of the European Union.

It might appear strange that a country that has achieved the status of an independent nation relatively recently (38 years are few compared to the millennial history of our country and of the European continent) would wish to join a union of nations that are much greater, with the possibility that certain decisions taken by this union could be against that country's perceived interests.

The argument might sound political but in effect it is economic. The European Union started off as an economic community and even the major developments towards an ever greater union have been economic rather than political. The European Union spends much more money on removing economic imbalances among the regions that form it and in achieving economic cohesion than in achieving political cohesion.

It seeks to achieve social cohesion more through economic measures than through political measures. So the issue is not of political independence, which no one should doubt, but rather of economic independence.

The issue of economic independence has long been important in this country. The departure of the British Forces in 1979 was not meant to be a sign that we had become independent politically.

The country had its own autonomous foreign policy at the time, certainly not influenced by the United Kingdom, while it was pursuing local policies without any pressure from any foreign power. The departure of the British Services was important for the government of the time because it signalled the start of an era when we could no longer rely on the income generated through direct and indirect contributions of the British Services.

This meant that the monies needed to manage the economy had to be generated through internal sources, like all other countries that do not depend on foreign aid. It was an important milestone for this country that had for centuries thrived on the aid given to it by other states, even if, since 1964, this had gone down considerably.

It was also very much in line with what was happening in other countries, former colonies of the imperial powers of the 19th and 20th century. However, it soon became apparent that Malta would always need some form of assistance from other countries and, as such, economic independence became very much a chimera.

In the meantime, the world passed through great changes not just on the political front because of the fall of communism in Eastern Europe but also on the economic front.

There was an opening up of economies through the removal of barriers to trade and investment and the internationalisation of business. There was a move towards increased economic interdependence among nations, and the European Union followed this course as well.

During the 1980s and 1990s there were several initiatives towards a greater economic interdependence among its members with the creation of the single market and finally with the creation of the single currency in 12 of its 15 members.

The decision by as many as 15 other states (including Malta) to apply for membership has to be seen from this perspective. If there has to be mutually beneficial economic interdependence among European states, it has to be achieved through a formal structure and the European Union represents that structure. Malta's aspiration to join the European Union is not a recent one either. It goes back to the 1960s, as evidenced by Prof. Henry Frendo in his excellent book The Origins of Maltese Statehood.

That the Maltese economy thrives on this interdependence among states is a fact that is not disputed by anyone. The level of our exports of goods and services when compared to our gross domestic product, our reliance on imports for most products that we consume, the significant importance of the tourism sector (and in our case it is only international tourism) in our economy, the strategic contribution of foreign direct investment to our economy, are all proof of the impact of the international economy on our country. They are all proof that in effect we are not economically independent and we can never be.

We can also take a couple of practical examples at a micro level rather than at a macroeconomic level. Malta has benefited greatly in recent months from the decisions taken by most major manufacturing firms to expand their local operations through new investment in plant and machinery or through new products or through new systems.

These decisions were taken in boardrooms in which no politician was present. We also had to suffer the consequences of a decision by a large European tour operator to cut down on its Malta operation. Again this decision was taken in a boardroom where there was no Maltese politician.

Therefore, arguing that Malta should not join the European Union because we would lose our economic independence is an argument that does not and cannot, hold any water because it is not based on today's economic realities.

On the other hand, joining the European Union would enable Malta to play an even bigger role (when compared to its size) in this scenario of increased economic interdependence among nations. However, the benefits that we can enjoy from the opportunities that the international economy presents are dependent on our own policies and strategies.

We need to believe that our economy provides a comparative advantage to businesses operating here. We need to be enthusiastic about such possibilities. But more importantly we need to know how to exploit this comparative advantage.

Joining the European Union is a statement that says in no uncertain terms that we believe in economic interdependence because it brings about benefits to our economy, that we are enthusiastic about this situation and that we know full well that unless we join the EU not only we cannot enjoy these benefits, but we run the risk of losing what we have.