SPEECH BY THE HON. DR. JOE BORG, MINISTER OF FOREIGN AFFAIRS OF MALTA AT THE 14TH MALTA/EUROPEAN PARLIAMENT JOINT PARLIAMENTARY COMMITTEE

t is my pleasure to be at the European Parliament once again for the 14^th session of the Malta-European Parliament Joint Parliamentary Committee. Since the Committee met in Malta last May, at its 13^th session, there have been a number of significant developments related to the process of Malta's accession to the European Union.

Our anticipation in May had been that Malta would soon close a good number of the eight chapters that had been opened for negotiations under the Portuguese Presidency. By June we had in fact provisionally closed seven of these eight chapters:

15. Industrial Policy

16. Small and Medium-sized Undertakings

17. Science and Research

18. Education and Training

19. Telecommunications and Information Technologies

26. External Relations

27. Common Foreign and Security Policy

The last chapter - 20 Culture and Audio-visual Policy - needed some further consultations, in particular in relation to the commitments on audio-visual policy within the framework of the World Trade Organisation. These consultations, which were conducted over the summer months, resolved the remaining issues, and the chapter was ready for provisional closure in October.

The second phase of the negotiations, under the French Presidency, has covered an additional nine chapters. These are:

4. Free Movement of Capital

5. Company Law

6. Competition

8. Fisheries

9. Transport

11. Economic and Monetary Union

12. Statistics

13. Social Policy and Employment

23. Consumer Policy and Health Protection

By the beginning of next week, when the Ministerial session of the Accession conference will take place, I expect that the EU will have submitted their Common Position on at least eight of these nine chapters. Up to four of these chapters - Company Law, EMU, Statistics and Consumer and Health Policy, should by then be provisionally closed. Work on the ninth Chapter, Transport, is also very advanced.

The expectation therefore is that, by the end of the first year, Malta will have provisionally closed up to 12 chapters in its negotiations. This is a respectable achievement by any standard. It underlines the commitment which Malta itself has put into the negotiations, as well as our advanced readiness for taking up the responsibilities of EU membership. It underlines the political commitment of the member states, and in particular of the Portuguese and the French Presidencies towards the process of enlargement in general and Malta's candidature in particular. It also underlines the thoroughness and dedication which the Commission Services and the Council Secretariat are putting into the negotiating exercise. And finally it also underlines the hard work which Maltese officials are carrying out to ensure Malta's preparedness throughout the accession process.

These past few months of intensive negotiations have helped to give us a fuller understanding of the enlargement process.

At one level we are gaining a deeper insight into the workings of the Union especially in terms of the relationship between its various institutions - in particular the Commission, the Council and the European Parliament. We are learning how this is a vital relationship which naturally undergoes the stresses and strains of any viable structure, but which is fundamentally stable and effective.

At another level, the very detailed technical discussions in which we have been involved have produced even more direct evidence, and reinforced our conviction, of the far-reaching benefits which Malta will derive through membership of the Union. We are seeing ever more clearly how this membership will both complement, and give a wider dimension to, our ongoing national efforts towards enhancing our economic performance and competitiveness in international markets, upgrading the quality of our standards and services, and improving the quality of life of all our citizens.

At yet another level we are seeing how the procedural and technical aspects of the accession negotiations are subsumed within the broader political aspects underpinning the enlargement process. Malta has always insisted upon the essentially political nature of the enlargement process. We wish to encourage the growing focus on defined political objectives in giving direction to the intense day to day activities of the technical negotiations.

In this context I wish to refer to the discussion on Enlargement which the European Parliament held in early October and the report it adopted on that occasion. Together with other candidate countries Malta has always seen in the European Parliament a stalwart ally in its quest for membership of the Union. This has been proved time and again over the many years since we first introduced our application for membership in the summer of 1990. Last October's discussions and report were carried out in this spirit.

In its general thrust the report reaffirms Parliament's continuing commitment towards the enlargement process. The resolution on Malta, based upon the report prepared by Ms Ursula Stenzel, and emphasising Malta's readiness for early membership, was yet another welcome gesture of support for our efforts. I would like to take this opportunity to express once again my appreciation of the contributions by all EP members, and especially the EP members of this committee, who are at the heart of this supportive action. A special word of appreciation goes to Ms Stenzel for her untiring efforts in producing an excellent report.

Earlier this month the Commission presented its own annual reports on the candidate countries, as well as a strategy paper on the future conduct of the negotiations.

The report on Malta once again reaffirmed that Malta possesses both the political as well the economic prerequisites for membership. We welcome the reiteration of this assessment not only because it reflects our own assessment, but also and more importantly because it provides yet another confirmation that we will achieve our basic objective, which is to be included in the first enlargement. We should recall in this context that it was as far back as June 1994 that the European Council, meeting in Corfu, committed itself to bringing

Malta within the European fold at the next enlargement. There have been many developments since then, but the fundamental commitment and readiness of Malta to join the Union are today as strong as, indeed even stronger, than they have ever been.

The Commission's report on Malta highlights the many developments which have taken place in our progress towards membership. These developments include an impressive set of new legislation over a varied range of subjects, from intellectual and industrial property, through telecommunications and free movement of goods, to consumer protection and justice and home affairs. We have also made important strides in strengthening our already well-established administrative capacity to adopt and implement the acquis. Indeed one of the more significant assets Malta enjoys in the accession negotiations lies in the strength and maturity of its administrative structures, which have taken the daunting task of negotiations well in their stride.

I have often made clear our full awareness that our satisfaction at the healthy progress we are making should never lapse into complacency, or a diminution of effort. The Commission's report is a reminder, if one were needed, that while much has been accomplished, even more remains to be done. In fact, a few weeks before the Commission presented its report, Malta had updated and submitted its National Programme for the Adoption of the Acquis. This details the various short term and medium term measures which we will be taking as Malta progresses in the accession negotiations and moves ever closer to membership. Our NPAA is a product of extensive consultations with the social partners and other interested parties. It therefore provides a solid blueprint for tackling all outstanding issues, including those identified in the Commission's report.

Coupled with its annual reports on individual candidates the Commission this year produced a strategy paper on the future conduct of the negotiations. The Commission's proposals are aimed at injecting in the negotiations a renewed sense of urgency and of political direction. There are some very interesting ideas on how the different issues arising in the negotiations can be tackled within defined categories and timeframes. Furthermore, we hope that the European Council in Nice will take the necessary decisions which will ensure the fulfilment of the Commission's basic recommendation that negotiations with the most advanced candidates should be concluded during 2002.

In order for Malta to meet this target we need to open negotiations on the remaining chapters as soon as possible in the early part of 2001. We also need to move effectively into the second and more detailed phase of negotiations on those chapters which, while already opened, include issues which require some special attention.

Other than the chapter relating to the institutional dimension and that concerning other matters, there are twelve remaining chapters which we will be seeking to open as early as possible next year. With this aim in mind, we have been working very intensively over the last few weeks on our negotiating positions for these chapters. Drafts on ten of the twelve positions are at a very advanced stage and we expect to be in a position to submit them by the end of this month or the beginning of the next. With regard to the Environment and Agriculture chapters, although of a somewhat more complex nature, we are confident that our positions will be ready by the end of the year.

I have mentioned that, under chapters which are already opened, some issues have been identified which require more detailed attention. The Union's common positions on the Fisheries, Competition and Free Movement of Capital chapters request us to provide a number of clarifications. We expect similar questions in the common positions, which we have not yet received, on Social Policy and Transport. From our side, on all these chapters we have made requests for various special arrangements or transition periods. We have requested special arrangements under Chapters 4 and 8 (Free Movement of Capital and Fisheries), and transition periods under Chapters 6, 9 and 13 (Competition, Transport and Social Policy).

Most of the issues arising under these chapters, both in terms of what Malta is requesting and of the clarifications required by the Union, are of a technical nature which we believe will be resolved without too much difficulty. There are three key issues which are of particular interest to Malta. One concerns the maintenance of a conservation zone over a 25 mile radius around Malta under the fisheries chapter. The other concerns a transitional period for state aid to our shipyards under the Competition chapter. The third concerns safeguards regarding the purchase of property under the Free Movement of Capital chapter. We have explained to the Union that these are sensitive issues which touch upon matters which go to the heart of Malta's social and economic well being. We therefore will be looking for acceptable arrangements in their regard.

I am aware that some EP members of this committee are particularly interested in the Transport chapter, especially with regard to the Maritime sector. I wish to inform you that in its Transport position paper Malta makes it clear that it will take up the full acquis on maritime transport without any reservations. The transition periods I referred to under this chapter are not related to this part of the acquis, but to the part dealing with land transport. On the question of maritime transport Malta is confident that its membership will bring some

distinct advantages for the Union. As a member of the Union, and with a ship registry which is one of the five largest in the world, coupled with its commitment to work in international fora for improving the international regime on maritime transport, Malta will be able to make a useful contribution towards a common goal.

In the weeks preceding the Nice summit a significant amount of attention will be directed towards the concluding phase of the Intergovernmental Conference on Institutional Reform. There is a general expectation that some resolution will be found for the three main issues being tackled, the question of qualified majority voting, the question of vote weighting in the Council and the question of the composition of the Commission. There is also an expectation that agreement will be reached on the question of enhanced co-operation.

In common with the other candidate countries Malta is following relevant developments with keen interest. What happens at Nice will inevitably have a direct impact on the enlargement process in general and on our eventual role as EU member in particular. We are also following with interest the views of the European Parliament on the various institutional issues which are under discussion. We have noted that the issue of the repartition of seats in the EP, following enlargement, has been put aside for the moment. On this, as on other issues regarding participation, Malta supports the view of those who endeavour to maintain a minimum basis of equality among member states. We believe that this is an indispensable feature of the essential nature of the Union.

You will sense that in the brief overview of developments that I have presented today there is a spirit of positive anticipation. This is indeed the case. In its report on Malta the Commission itself makes reference to the improving economic climate, and our increasing success in tackling and overcoming our internal financial, economic and other difficulties. This validates our deepest conviction that the process of national development and the process of joining the Union are mutually reinforcing and beneficial. We are already seeing the effects of this, and we are confident that the Maltese people will give their confirmation when they vote on the results of the accession negotiations in the referendum, which will take place as soon as these negotiations are concluded.

Once more I thank you for giving me the possibility to be with you again at the Parliament and to share with you a few thoughts. I thank you for your attention and wish you well in your proceedings