STATEMENT ON BEHALF OF MALTA BY MR RICHARD CACHIA CARUANA, CHAIRMAN, CORE NEGOTIATING GROUP, AT THE FIFTH MEETING OF THE ACCESSION CONFERENCE AT DEPUTY LEVEL, BRUSSELS, 29 MARCH 2001

This accession conference is today opening a further five chapters for negotiation - Free Movement of Services, Transport, Regional Policy, Financial Control as well as Financial and Budgetary Provisions. Formal negotiations have now commenced on twenty-one of the chapters of the acquis communautaire. Twelve of these chapters have already been provisionally closed.

A thirteenth chapter, that relating to Financial Control, is today being added to the list of provisionally closed chapters. This chapter deals primarily with matters relating to internal structures and administration.

Throughout these negotiations, it has become evident that Malta's administrative practices and procedures are rooted in the same cultures and expectations shaping administrations and practices within the Union. These put a strong premium on a sense of professionalism and integrity at both personal and institutional levels as well as underlining the qualities of service and probity in the conduct of public affairs.

We are fully aware that further improvements and even reforms are necessary. This is an essential and continuing requirement for any modern and efficient administration.

In the negotiations so far, we have highlighted one area of the Free Movement of Capital, that relating to the acquisition of property, which requires careful consideration in the light of our specific geo-physical circumstances. In this area, we are glad to learn that the Union is beginning to demonstrate a measure of adaptability with respect to candidate countries.

We have also highlighted one area under the Competition Chapter, that relating to state aid to our shipyards, which also requires special consideration bearing in mind our particular social and economic conditions. Additionally, when considering the chapter on Free Movement of Persons, we will need to discuss some aspects relating to the movement of workers in some detail.

These three issues represent sensitive and important aspects of our accession negotiations. We are convinced that these do not impinge on our readiness and capability to fully participate in the internal market. We believe that satisfactory solutions can be found which maintain a balance between our concerns and those of member states.

We are confident that our negotiating positions already provide ample evidence that Malta is at an advanced stage of alignment with the broader aspects of the internal market acquis. We are committed to implement the proposed legislative and administrative programmes within the established time-frames.

This applies in particular to the chapter on Free Movement of Services, which is one of the chapters being discussed today. It is clear that there are no fundamental issues arising either in the area of freedom of establishment or in the area of cross-border services. The points we have raised in our position paper and the clarifications requested in the Common Position can be addressed at a technical level over the coming weeks. We have already initiated this process with the Commission services. It is our expectation that this chapter, together with that on Free Movement of Goods, could be ready for provisional closure at our next meeting in May.

The chapter on Transport Policy, in our view, does not offer insurmountable problems and could also be ready for provisional closure in the near future. We are conscious and indeed share, the particular importance which member states attach to the issue of maritime safety and we are following very attentively the evolution of the acquis in this regard. We strongly believe that our membership of the Union will provide added impetus to continuing efforts to tackle this issue at the international level. It is certainly our firm intention to play as useful and constructive a role as possible in this regard.

We do not believe that any significant issues of principle arise in our three requests for short transitional periods with regard to land transport. It is considered that these requests fall within the notion of acceptable requests as defined in the Commission's strategy paper of last November. With respect to the inter-island service, as well as the issue of Sea Malta, we believe that appropriate solutions can be found within the existing provisions of the acquis.

In the light of these assessments, we will be aiming to have this chapter ready for provisional closure during the course of this Presidency.

The two other chapters we are discussing today do not in themselves present us with any difficulties in so far as either legislative harmonisation or capacity building are concerned. We are not requesting any transitional periods on either of these two chapters. Our work for putting into place the administrative structures necessary for the eventual utilisation of structural and cohesion funds is well in hand. We are also working closely with the Commission services on the necessary institution building and procedures regarding the collection and transfer of own resources.

The chapters of Regional Policy and Financial and Budgetary Provisions are directly linked to the financial and other arrangements which need to be in place immediately upon accession. The road map proposed by the Commission last November suggests, however, that member states will only be in a position to consider these issues in detail during the last phases of the accession negotiations.

We understand this point and can go along with its implications. At the same time, we feel that it is necessary for the extensive technical work and financial projections which are required in preparation for membership to be undertaken as thoroughly and as expeditiously as possible. With the recent publication by Eurostat of the figures relating to Malta's Purchasing Power Parity, the basic assumptions regarding Malta's status as an eventual beneficiary of structural and cohesion funds can now be made.

In the specific context of the chapter on Regional Policy, it is now reasonable to anticipate that, as a member state, Malta will be eligible for Objective 1 status under the Structural Funds. In our view, the sharp differential which consequently arises between our pre-accession and post-accession status as a beneficiary of assistance from the Union, places us at a clear disadvantage. Access to certain funds, even if limited, allows the administrative capacity to be built up within the EU's programming structures. This will have a direct effect on Malta's ability to make effective use of post-accession funds. It is therefore our continuing hope that member states will find a means of remedying this situation.

In the Negotiating Position Paper on Financial and Budgetary Provisions, Malta has highlighted the need for an agreement on transitional arrangements to cater for the initial period of membership in so far as the flows of our required contributions and expected benefits are concerned. This issue has arisen in previous enlargements and applies to all candidate countries.

I have already made some reference to the Commission's November Strategy Paper. At this stage, it is possible to try to make a first assessment of the impact which the implementation of these proposals is having on the negotiating process. From Malta's point of view, the most significant impact has been the increased opportunity for intensive technical discussions on specific issues which arise in the course of negotiations.

The Commission Services have in fact greatly expanded the practice of consulting with us in detail on our Position Papers before submitting the first draft Common Positions for the attention of member states. At the same time, the extended consultations prior to the finalisation of draft Common Positions has also had the initial effect of perhaps delaying the appearance of these positions beyond what would have been the case in the earlier phases of the negotiations process.

Taken together, these developments can be considered as having a salutary effect on the negotiating process by inserting a better balance between timing and substance. We welcome this development as a significant improvement which in the longer term will have a positive impact on both the pace as well as the quality of the negotiations.

In our view, however, there is one aspect of the negotiations which still requires some attention. This concerns the manner in which we are dealing with the more sensitive issues. These call for attention beyond the purely technical level. I have today already made reference to three such issues as far as Malta is concerned. These are the acquisition of property, the state aid to our shipyards and the free movement of workers.

There are a handful of other issues which fall within this category and which feature in chapters where negotiations are not yet formally open. These include certain aspects of value added tax, a special programme for Maltese agriculture and the need for assistance in the implementation of some aspects of the environmental acquis.

We believe that these issues cannot be negotiated exclusively on the basis of technical discussions relating to the strict letter of the acquis. The wider aspects of the economic and social implications also need to be considered. We hope that the full implementation of the Road Map expressed in the Commission's Strategy Paper will provide the necessary response to our concerns.

Before concluding, I would like to take the opportunity once again to express our appreciation of the co-operation and support we continue to find from the Commission Services, from the Council Secretariat as well as from the representatives of member states.

I wish to thank the Swedish Presidency for the energy and enthusiasm with which it is tackling the enlargement process. I would also like to add a word of appreciation for the French Presidency for the work it undertook during the second half of 2000, and in particular for bringing the difficult Nice discussions to a successful close.

PROCESS TA' NEGOZJATI BEJN MALTA U L-UE: JINGHALQU N-NEGOZJATI DWAR IL-QASAM TAL-KONTROL FINANZJARJU

Il-konferenza dwar il-process ta' shubija ta' Malta fl-UE regghet iltaqghet dalghodu fi Brussel fejn kien hemm qbil bejn Malta u l-Unjoni Ewropea sabiex issir rakkomandazzjoni lill-Ministri ta' l-Affarijiet Barranin illi jinghalqu n-negozjati dwar il-qasam tal-Kontrol Finanzjarju fil-laqgha Ministerjali li jmiss li ghandha issir f'Gunju. Dan ifisser illi s'issa Malta ghalqet in-negozjati fuq tlettax-il qasam b'kollox.

Il-Konferenza llum fethet ukoll negozjati dwar erba' oqsma ohra. Dawn huma l-Moviment Hieles tas-Servizzi, it-Trasport, il-Politika Regjonali u l-qasam tal-‘Budget'.

Matul il-laqgha ta' dalghodu, ic-Chairman tal-Grupp Ewlieni tan-Negozjaturi ta' Malta, is-Sur Richard Cachia Caruana qal illi hareg car min-negozjati dwar il-Kontrol Finanzjaru li, f'dan il-qasam, Malta diga timxi fuq livelli ta' l-Unjoni Ewropea. Is-Sur Cachia Caruana semma wkoll l-importanza li Malta qed taghti ghan-negozjati fl-oqsma tat-tarznari, kif ukoll il-bzonn ta' kontroll fuq ix-xiri ta' proprjeta' minn barranin u tal-moviment hieles tal-haddiema.

Semma wkoll li dan l-ahhar l-Eurostat ippubblikat l-istatistika tal-Prodott Gross Domestiku (GDP) ta' Malta a bazi tal-Purchasing Power Parities (PPP), u li minn dan jirrizulta li Malta ghandha tibbenifika mill-fondi Strutturali u ta' Koezjoni ta' l-Unjoni Ewropea bhala regjun meqjus Objettiv Wiehed (Objective One).

Dwar l-oqsma l-ohra li nfethu ghan-negozjati llum, is-Sur Cachia Caruana qal li l-oqsma tal-moviment hieles tas-servizzi u tat-trasport huma avvanzati bizzejjed biex ftehim finali dwarhom ikun jista' jintlahaq taht il-Presidenza Svediza. Dwar il-qasam tal-budget ta' l-UE, is-Sur Cachia Caruana qal li Malta trid tilhaq ftehim biex il-kontribuzzjoni taghha ghall-budget ta' l-UE jibda jithallas fuq bazi gradwali wara li tissieheb u mhux b'mod shih mill-ewwel.

Dwar il-qasam tal-kummerc hieles ta' prodotti, is-sur Cachia Caruana qal li anki hawn, Malta tistenna li n-negozjati f'dan il-qasam ghandhom jinghalqu sa Mejju li gej.

Is-sessjoni ta' dalghodu giet indirizzata wkoll mill-Ambaxxatur Gunnar Lund, f'isem il-Presidenza Svediza. Huwa qal li l-process ta' tkabbir huwa prijorita ghall-Presidenza Svediza. "Zvilupp importanti f'dan ir-rigward sehh bil-konkluzjoni tal-konferenza intergovernattiva dwar ir-riformi istituzzjonali. B'dan il-qbil li ntlahaq f'Nizza, l-Unjoni Ewropea se tkun f'pozizzjoni li tibda tilqa' membri godda sa minn tmiem is-sena d-diehla," qal l-Ambaxxatur Lund. Huwa zied li kull pajjiz jimxi skond il-pass tieghu u li dawk il-pajjizi kandidati li javvanzaw l-aktar fit-thejjijiet taghhom se jimxu aktar malajr. "Fil-programm taghna irridu nifthu maghkom negozjati fuq l-akbar numru ta' oqsma sa' nofs din is-sena. Se nahdmu biex naghmlu l-aktar progress possibbli fuq dawk l-oqsma li dwarhom diga ftahna n-negozjati. Dan se jaghtikom il-possibilita' biex tkompli tlahhqu ma' dawk il-pajjizi li bdew in-negozjati sentejn qabilkom," sostna l-Ambaxxatur Lund.

Dwar il-qasam tal-Kontroll Finanzjarju, l-Ambaxxatur Lund qal li f'dan l-istadju n-negozjati fuq dan il-qasam jistghu jinghalqu. Min-naha l-ohra, dwar l-oqsma l-ohra diskussi fis-sessjoni ta' llum, l-Ambaxxatur Lund qal li Malta hija mitluba tghaddi aktar taghrif dwar it-talbiet li qed taghmel fin-negozjati.

Dwar il-qasam tas-servizzi, huwa qal li dan il-qasam huwa importanti ferm ghas-suq Ewropew u li kull pajjiz ghandu jizgura li jimplimenta l-ligijiet li japplikaw ghal dan il-qasam sabiex l-istituzzjonijiet finanzjarji jkun jistghu jibdew jaddattaw ruhhom minn issa.

Dwar il-qasam tat-trasport huwa accenna ghall-kwistjoni tas-sigurta marittima fil-flotta li ttajjar il-bandiera Maltija u anki ghall-kontrolli li ghandhom isiru fuq dawn il-vapuri. Dwar il-qasam tal-politika regjonali ta' l-UE, l-Ambaxxatur Lund qal li l-UE hadet nota ta' dak li qalet Malta dwar l-eligibilita' taghha ghall-Fondi Strutturali. Huwa qal li Malta ghandha tipprovdi aktar taghrif dwar liema huma u kif se jahdmu l-istrutturi Maltin li se jkunu responsabbli ghat-tmexxija u kontroll tal-fondi ta' l-UE.

Fl-ahharnett, dwar il-qasam tal-budget ta' l-UE huwa qal li anki hawn l-UE hadet nota tat-talba ta' Malta li trid tilhaq ftehim biex il-kontribuzzjoni taghha ghall-budget ta' l-UE jibda jithallas fuq bazi gradwali wara li tissieheb u mhux b'mod shih mill-ewwel. Hu qal li dwar dan ghad iridu jsiru tahdidiet aktar ‘il quddiem.

Min-naha tieghu, id-Direttur Generali ghat-Tkabbir fil-Kummissjoni Ewropeja, is-Sur Eneko Landaburu, qal illi Malta kompliet turi progress sostanzjali fin-negozjati li wassalha biex taghlaq in-negozjati fi tlettax-il qasam f'temp ta' ftit aktar minn sena.

Huwa zied jghid li a bazi ta' informazzjoni aktar dettaljata prezentata minn Malta, il-Kummissjoni tqis li jista' jsir aktar progress fl-oqsma tal-politika regjonali u anki fin-negozjati dwar il-budget ta' l-UE.

Dalghodu iltaqghu wkoll il-konferenzi tan-negozjati tal-pajjizi kandidati: Cipru, Ungerija, Polonja, ir-Repubblika Ceka u l-iSlovenja.

Is-Sur Cachia Caruana kien akkumpanjat mill-Ambaxxatur ta' Malta fi Brussel, Victor Camilleri, minn Patrick Tabone, Assistant Personali tal-Ministru tal-Affarijiet Barranin, minn Dr Simon Busuttil, Kap tac-Centru ta' Informazzjoni Malta-UE, minn Graziella Pullicino, Ko-ordinatur fis-Segretarjat tan-Negozjati mal-UE u minn numru ta' ufficcjali ohra mill-Ambaxxata ta' Malta fi Brussel.