PRESS RELEASE BY THE MINISTRY FOR THE ECONOMY, ENTERPRISE AND STRATEGIC PROJECTS “The Single Market is the backbone of the European Union, but persistent barriers undermine its potential” – Minister Silvio Schembri

Minister for the Economy, Enterprise and Strategic Projects, Silvio Schembri attended the Competitiveness Council meeting held in Brussels. During discussions on the draft Council Conclusions on the future of European competitiveness, Schembri emphasized the importance of strengthening the Single Market to drive productivity, growth, and economic performance across the European Union.

The Minister highlighted the continued presence of barriers within the Single Market that negatively impact competitiveness. He stressed the paramount importance of addressing challenges in the services sector, which is a cornerstone of Malta's economy especially when it comes to cross border digital services. Schembri expressed concern over restrictions and the uneven application of fundamental EU freedoms, which prevent many service providers from competing on equal terms. He called on the EU to prioritize the removal of these barriers to foster sustainable economic development.

The Council also discussed better regulation initiatives aimed at strengthening the EU's competitiveness. Malta expressed its strong support for the European Commission's target, outlined in the Draghi report, to reduce reporting obligations by 25%. Minister Schembri called for the simplification of existing legislation to alleviate compliance burdens on businesses while ensuring objectives do not overlap unnecessarily. He emphasized that efficient and streamlined regulation is crucial for supporting businesses and unlocking economic potential across the EU.

Minister Schembri also attended the Europe Startup Nations Alliance Annual Forum, where he outlined Malta's ongoing commitment to fostering a dynamic startup ecosystem. He highlighted national initiatives such as the diHub Malta, Malta Venture Capital, and the One-Stop Shop for Startups, which are designed to support entrepreneurs at every stage of their journey.

On an EU level, Minister Schembri urged policymakers to address systemic challenges such as funding fragmentation and outdated state aid frameworks, which can hinder startup growth. He called for a reassessment of these frameworks to ensure they align with the unique needs of startups and enable them to thrive within the European market. Schembri stressed that startups are essential drivers of innovation and economic growth, and it is critical to create an environment that encourages their success.

By advocating for improved regulation and addressing the needs of startups, Malta aims to contribute to a stronger, more integrated, and future-ready European economy.