SPEECH BY THE HON. JOHN DALLI MINISTER OF FINANCE AT THE OFFICIAL OPENING OF BANK OF VALLETTA'S REPRESENTATIVE OFFICE IN TUNISIA

Your Excellencies, Ministers, Mr Chairman, ladies and gentlemen good evening. Its gives me great pleasure to be present at the official opening of Bank of Valletta's new representative office in Tunisia.

Malta's relations with its Mediterranean and European partners

In the last two years the Maltese's Government foreign policy has been moving on dual lanes: that of European Union membership and that of strengthening of Malta's relationship with its Euro Mediterranean partners. One of our principal objectives is to extend the range and quality of our partnership both with countries within our region and those beyond. Last events and geographical location have converged to make of our island a natural meeting point facilitating convergence between diverse cultures and peoples.

I would like to emphasise that this is crucial to survival and our prosperity as an independent State. Building communication, contacts and commercial partnerships with the world beyond our shores is more vital than ever in today's era of globalisation. Our limitations of size and natural resources make it even more vital for us to interact with our neighbours, both in Europe and in North Africa. This is the key that opens doors, not only to wider and larger markets, but also to increased stability and prosperity. For the more we engage with others in political and economic spheres, the more we must avoid the dangers of isolation and protectionism. As we continue to meet the challenges offered in an interdependent world it is ever more important for us to be creative in identifying opportunities and niches for the benefit of our people. Within this globalised era co-operation between neighbours plays an important part.

I have already noted that one of the main contributions which Malta expects to make as a member of the European Union lies in the area of Euro-Mediterranean relations. Our active involvement in the promotion of security and co-operation in the Mediterranean has traditionally been a major aspect of Malta's foreign policy. This is a natural outcome of our particular geographical situation. It is also a logical response to the geo-strategic realities in the Mediterranean, that co-operation in the areas of economic development and culture is the secret to stability and future prosperity.

Together with other Mediterranean countries, Malta is deeply concerned at what appears to be endemic instability in the Mediterranean. Malta is nevertheless convinced that there do exist in the Mediterranean underlying factors of stability arising from the common interests and concerns of the littoral states. We are equally convinced that the European Union has a major role to play in bringing these stabilising factors into play.

This role is also a function of the direct linkage which we see between European and Mediterranean security and co-operation. In this spirit, we have actively supported the Union's initiative for a Euro-Mediterranean partnership launched in Barcelona in 1995. We are equally in favour of seeing an increasing involvement by the Union in the search for a resolution of the major problems in the Mediterranean, the Balkans and the Middle East.

Malta's Economic Development

Since we became an independent state in 1964, Malta has aimed to exploit this inheritance and turn it into a key factor of our economic development. Over the years we have had encouraging success in our efforts to attract foreign investment, to Malta, increasingly in high value-added industries requiring the varied skills and solid loyalty which are readily found within the Maltese labour force.

We have also been successful in developing a flourishing tourism industry, again mainly from European sources. In recent years we have been developing our services and hubbing industries, particularly in the area of financial services, telecommunication, information technology, tourism and transhipment.

Financial and Banking Services

Recent years saw a growing interest in Malta as an international financial services centre. This interest was especially strong with regard to the investment and fund management services with a particular increase in activity in the insurance and banking sectors. In this context, international firms and banks have increasingly chosen to operate in Malta using the island as a hub for their regional operations.

Financial services in Malta are regulated according to the highest regulatory standards and in line with EU directives by the Malta Financial Services Centre (MFSC) and the Central Bank of Malta.

Co-operation between the two countries

In recent years the relationship between Malta and Tunisia have got stronger especially after the Joint Commission meeting in Malta in May. There has been marked improvement in the areas of trade and tourism between the two countries according to recent official statistics arrivals in Tunisia from Malta stood at 10, 251 persons. In the area of trade Malta imported US$ 4.4 million while exported US $ 1.1 million worth of products in 1998.

With the opening of Bank of Valletta's representative office it is anticipated that co-operation in the areas of trade and tourism will improve. I believe that this office will act as a catalyst in promoting bilateral co-operation in areas of economic activity.

I congratulate Bank of Valletta and wish you the best of luck with this new endeavour.

Merci pour votre attention