SPEECH BY THE HON. JOE BORG, MINISTER OF FOREIGN AFFAIRS, ON EU ENLARGEMENT - MALTA'S CASE ON THE OCCASION OF THE MEETING OF THE EU COMMITTEE OF THE REGIONS AND THE MALTESE LOCAL COUNCILS' ASSOCIATION.

It is a great pleasure for me to be here at this the first Committee of the Regions Conference to take place in Malta in conjunction with the Local Councils' Association. It is indeed a pleasure to see the process of EU enlargement being discussed in this forum at one of the closest levels possible to the people. Allow me to add my own welcome to the warm welcome I trust you have already received from the organisers of this important event. I augur that you will enjoy the conference and for those of you visiting Malta, I trust you will enjoy your stay here with us.

EU membership is a matter that lies very close to the heart of the Maltese people. It is a matter of continual debate, a matter which is of great importance to us, not solely as a state with our very own ideas and patterns of development, but also as a state with a determined will to preserve all that we have built over the years. We are indeed proud of our heritage as a country that, throughout the vicissitudes of time, has proved to be both a stalwart ally in the defence of western values and a member of the international community that has a part to play far in excess of its size.

As I stated in my address to the UN General Assembly only two months ago, we do, in Malta, recognise the need to continue playing a crucial role on the international stage through the opportunities afforded to us by the many multilateral fora in existence. Alone, we realise that we can only do so much. As a member of the international community we not only feel the importance of making a contribution on an international scale; more importantly we realise how crucial this is in turn, for our own internal development.

The role that Malta plays on the global stage can be seen in virtually all aspects of our relations with third parties. One only has to look at the Mediterranean where we are always ready to offer a helping hand in bridging the divides of this region and where we involve ourselves actively in processes that bring the key players in the region together. We also play a role in the United Nations - our involvement in the Law of the Sea and the Common Heritage of Mankind being just a couple of our more significant contributions. The recent voluntary increase in our financial contribution to the peace-keeping efforts of the UN is another of the more tangible contributions we have made in this forum.

Therefore if we can and already do this at a sub-regional and international level, can we not also do this at a regional level? It is in the answer to this question that the roots of our commitment to play a part in European affairs, as a member of the European Union, may be found. It is here that our commitment to do this from within, as opposed to from without as merely an observer on the margins, originates.

We believe that Malta has a role, and a significant one at that, to play in the process of inclusion currently underway across the entire European continent. Our belief in this role is a long-term view of the evolving nature of international politics that we firmly believe holds much both for Malta as international player and also, possibly more importantly, domestically in our own process of evolution and development.

We do not just see Malta as net receivers from the process of EU integration. On the contrary we believe that there is a significant contribution for Malta to make most especially in the Union's dealings with its southern neighbours. The large gap in development trends in the adjacent regions of the EU is often cause for concern especially where these lead to migratory flows, increased crime and other negative transboundary factors. Through our involvement in the Euro-Mediterranean process, where European and Mediterranean partners co-operate on political, economic and social issues, and in the future as a member of the European Union, we feel that we can provide an added voice to promote the development of the Mediterranean. This is of extreme importance from the point of view of both our Mediterranean and also our European partners.

In the same way as we wish these opportunities for the Mediterranean as a whole, we too hope to be able to offer higher living standards, increased opportunities and a viable economic future for our people by attracting more inward investment and opening up to the full potentials of trade. We hope to do this throughout our economy ensuring that a significant impact is felt at a local level.

All EU candidates are beneficiaries of EU financial assistance that currently includes various pre-accession instruments and will eventually include structural funds following accession. These funds, if properly and carefully managed, can contribute to significant improvements in the overall economic development of Malta. As members of local councils you are amongst the first who will see the advantages of such assistance, be it in the upgrade of roads and transport networks, embellishment projects, initiatives to improve the local environment and other such undertakings. The government has already gone some way in providing such assistance to the local councils, however accession to the EU will clearly increase the amount of funds available for such infrastructural and other improvements. The opportunity provided by the EU for twinning projects between local groups is another of the benefits to be felt, directly by you, in this process of accession.

Post-accession funding and twinning focuses closely on ensuring that Malta is not merely an outpost of Europe but an integrated part of the Community, sharing common standards of living and a good quality of life. Structural funds are primarily designed to ensure that the outlying regions of the Union approach the levels of development of the European core. Areas that may experience recession due to the winding down of a particular industry or the introduction of more competitive technologies, are provided with the necessary funds, re-training and re-organising methods that can help deal with the issue head on. It is clearly therefore, not merely the incentive to modernise, restructure and become more competitive that the Union provides, it is also the appropriate mechanisms and financial support to do this, that come as part and parcel of the whole process.

The courage of conviction to maximise Malta's competitivity and to enhance our way of life, carries with it a number of ripple effects - many of which are extremely significant, especially in the case of a place such as Malta where side effects are too often felt fast and furiously. To name but a few of the sectors that will enjoy the effects of this process, one can immediately think of tourism, the construction and services sectors, manufacturing, industry in general and last, but not least, Maltese youth. As we progress in our bid for membership of the European Union, as painful as the process of reform may sometimes feel, it is important not to lose sight of the end goal. This is a goal I believe we all share: to improve Malta's economy, our standards of living, the opportunities for travel and new experiences and ultimately to provide a valid role for Malta in the unfolding of events that so often carry acute consequences for us.

The case for Malta's entry into the EU, the case for us to be part of this historic process of enlargement is therefore clear. We have the desire, the tools and the will to complete the modernisation and restructuring of the way we do things.

Our desire to be part of this process stems from our European vocation that originates not solely from our historical political, cultural and trade links with Europe, but also from our vision for Malta's future. We believe that the European Union provides the best option for our continued development, growth and prosperity. We believe that the reforms required by membership of the European Union are necessary and will serve to improve our competitivity on world markets, the levels of service we can offer and the general outlook of our people. We are also aware that these reforms will enable us to deal more ably with the forces of globalisation that surround us and our need to play a part in the larger world economy.

We also believe that we have the tools to be part of this process of EU enlargment. We believe that we have the necessary manpower and long-standing institutional set-ups on which to build our capacity to implement the acquis. Even now, as we speak we are working hard to continually improve our institutional capacity to handle the obligations that will arise from membership in this European project. We are fortunate to be receiving assistance to do this both from the Union itself as a combined entity and also from the individual member states that make up that Union, with whom we have enjoyed good and productive bilateral relations for many years.

Last but by no means least, we also have the motivation to take on this most delicate and far-ranging program of reform ever tackled by the island. We not only want to form part of the European Union, we also want to be part of its first enlargement. We are committed to having our house in order by the appropriate time in order to achieve this aim. And I think, you will agree that occasions like these only serve to underline this commitment ever further.

I augur that there will be more gatherings such as this where people from both the European Union and our own leaders in their field can get together to discuss where we are headed and how we shall get there. Such co-operation augurs well for the common future that we will share.

By way of conclusion, I would like to underline our vision for Malta's entry into the European Union once again. We believe that membership of the European Union is a chance for Malta to truly develop, prosper and play its part on the international stage. We believe this constitutes our chance to truly have a say in our own local, sub-regional, regional and international development.

I leave you now to your own deliberations and wish you every success in this regard.

Thank you.