Prime Minister Joseph Muscat has expressed optimism that Malta will continue to be eligible for some EU Cohesion Funds despite its economic progress.

Fears had been expressed that Malta would lose eligibility for the funds once its economy had improved and it was no longer among the worst off in Europe. 

But Dr Muscat said progress needed to be sustained, rather than have support withdrawn, and he was confident that this view was gaining traction in the European Commission.

Dr Muscat made his comments in Bratislava at a ‘Friends of Cohesion’ conference.  

He said it was preferable for a country to progress, with less EU funds, than to be poor with more funds. However, there should be an acceptable level of EU funds to help sustain progress that was being made.

Dr Muscat said he was positive and believed that this aim would be achieved. 

Those present for the conference include European Commissioners Ewropej Günther Oettinger and Maroš Šefčovič.

Dr Muscat is accompanied by Aaron Farrugia, parliamentary secretary responsible for EU funds.

Times of Malta had reported in May how Malta’s economic boom was set to make the country one of the European Union’s biggest cohesion fund losers, under budget plans unveiled by the European Commission.

According to the plans, Malta would receive roughly €673 million in cohesion funds between 2021 to 2027 – though that proposed figure was in reality closer to €597 million when funding was locked in at 2018 prices, without inflation factored in.

That €179 million cut would mean a roughly 24% reduction in funding for Malta. Hungary, the Czech Republic, Lithuania, Estonia and Poland are set to experience similar cuts in relative terms, according to an analysis conducted by the Financial Times.

In September, Dr Farrugia had insisted that despite Malta’s unprecedented economic growth, the country was nonetheless facing a number of challenges in the areas of environment, education, and innovation – and therefore still need EU funding.