BENEFITS OF INDUSTRY RESTRUCTURING

In today’s issue of “The Times” it was reported that UHM General Secretary Mr Gejtu Vella said that “The European Union would have provided funds to help with restructuring had Malta continued with its negotiations to join the European Union”.

For the record, it has to be pointed out that the 4th Financial Protocol signed in 1995 between Malta and the European Union was originally intended as the financial package which would be available to Malta in the period prior to its accession to the European Union.

Speaking at the meeting of the Malta-EC Association Council inn May 1996 the then President of the Council, Italian Foreign Minister Susanna Agnelli, informed ex-Foreign Minister Demarco that “as to financial co-operation, the entry into force of the 4th Protocol totalling ECU 45 million will make it possible to finance the structural reforms needed for the transition of the Maltese economy and to meet the challenge presented by Malta’s accession to the European Union”.

It is to be noted that the same funds which were originally intended for Malta’s pre-accession process have now been allocated to support the close relationship between Malta and the Union which Malta today sees as the preferable alternative to membership.

Within the framework of its new policy for a close relationship short of membership, Malta also continues to be eligible to benefit from grant funds available under the regional programme of the Euro-Mediterranean partnership. It also continues to be eligible to benefit from subsidies for loans from the EIB for projects of an environmental nature.

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Claims that had Malta continued with its negotiations to join the European Union, the Union would have provided additional assistance for industrial restructuring are not supported by any facts. Furthermore they are not supported even by a comparison with what is happening in the case of Cyprus - still a candidate for membership. As would have happened in our case, the only funds presently available for Cyprus in its pre-accession process, and all it entails including industrial restructuring, are those provided for in its 4th Financial Protocol.

The pre-accession assistance which is being provided to Central and Eastern European countries under the Phare and other programmes has not been made available to Cyprus, and would not have been made available to Malta either.