​ PRESS RELEASE BY THE MINISTRY FOR THE ECONOMY, ENTERPRISE AND STRATEGIC PROJECTS Minister Silvio Schembri advocates for SMEs and peripheral realities at EU competitiveness meeting

Minister for the Economy, Enterprise, and Strategic Projects Silvio Schembri is currently in Nicosia, Cyprus, participating in the informal meeting of EU Ministers for Competitiveness, focusing on the future of the internal market and industrial resilience. 

Addressing the European Defence Technological and Industrial Base, Minister Schembri insisted that EU initiatives must respect the neutral security policies of Member States. He highlighted that Malta’s SME-driven economy contributes primarily through dual-use sectors rather than military production and firmly opposed diverting Cohesion Policy funds toward defence. Instead, he called for a dedicated European Competitiveness Fund with ring-fenced support for SMEs, noting that such a framework could also provide valuable support for Important Projects of Common European Interest (IPCEI), including semiconductors and the upcoming European Chips Act 2.

Regarding the ‘Competitiveness Compass’ the Minister advocated for smarter governance and streamlined reforms that account for the unique challenges of peripheral states. He identified administrative simplification and reduced compliance costs as essential short-term goals, while stressing that greater emphasis is needed on human capital. He noted that enhancing digital, STEM, and financial literacy is essential for SMEs to remain competitive. Furthermore, while acknowledging the value of financial instruments, he reaffirmed that grants remain indispensable for supporting early-stage innovation and the full scale-up journey of smaller enterprises.

In discussions on the Single Market, Minister Schembri emphasized that as an island nation, freedom of movement and mobility services are paramount. He called for the removal of digital barriers in AI and data sharing, stressing that future-proof legislation must include human oversight and robust protection for minors. He urged for enhanced digital skills to help vulnerable consumers navigate data-driven environments safely.

Minister Schembri concluded by reaffirming Malta’s commitment to a competitive Europe that balances innovation with social safeguards. He reiterated that for the single market to succeed, EU policies must remain flexible enough to address the diverse industrial and geographical realities of all Member States.