Lack of consultation risks EU funding problems

Government is late in presenting Malta’s National Recovery plan to tap into 316 million in EU funds. What’s worse, is that the draft being pieced up as we speak is not the outcome of consultation with stakeholders as it should be for the Covid-19 recovery to respond to the needs of different sectors.

Agovernment statement in reaction to my article on independent and other media comments points out that the Commission deadline of 1 May for Member States to present National Recovery plans is no peremptory deadline, but just an indicator for national Governments.

Government mentions that only 8 of the 26 EU countries have submitted such plans as yet. Both statements are misleading. But they wont’ fool us won’t they? First of all, the European Commission had received already 25 out of the 27 National plans by Monday. European Commission press releases attest so much. The only ones missing are Malta and the Netherlands. The Netherlands had a snap election in March right in the middle of the consultations, hence derailing the work on the national plan.

So how is it that the Government is saying that only 8 Member States submitted plans. Well, if you count only the ones formally approved after negotiations with the European Commission, indeed you can reduce 25 to 8. But beyond the Government smokescreens, the problems here go beyond missing deadlines. The Commission’s ‘indicative’ deadline has a role to play in the date of deployment of the millions of EU funding to be released into sectors of the economy. Now, virtually all Member States have secured their National plans with the European Commission already to ensure that they can deploy the EU funding in July. This will not be possible for Malta if we continue to lag behind.

The pandemic aftermath will put everyone to the test. Government deficit is growing at alarming rates while tourism demand will be slow at first. In this context, speed of intervention plays a major role. We need to be prepared to assist businesses and employment forthwith. A few weeks can make it or break it when the balance sheet is already in the red, and while PM Abela and all his communication armour made a big deal with the 20 million rather symbolic aid to businesses, we are losing time on tapping the full force of the EU’s 316 million from Malta’s allocation in the EU recovery funds.

The timing is not the only problem. In a passionate address to the Committee of the Regions, President von der Leyen emphasised the objective of the EU Recovery and Resilience funds to respond to the needs of stakeholders on the ground and in particular regional and local authorities. ‘Local administrations must be in the driving seat’ said von der Leyen. In Malta we pander to how important the Local Councils are when we get closer to their elections and then we seem to forget all about it in between. Did the Government involve any of the local councils in devising a plan on how to use the Union’s 316 million in Covid recovery funds?

How about Gozo? Government actors regularly tell us that Gozo is a priority and come up with allegedly binding percentages of EU funding to be committed for Gozo. Was the Gozo Regional Development Authority launched with pomp last year roped in for the input of Gozitan actors to the National plan for the optimal use of EU recovery funds? You guessed it. None of that has happened.

I am personally committed to advance Malta’s cause in the EU because I believe that European channels can open up further horizons for the Maltese and Gozitan people, be they workers, youths or organised groups or businesses. For all these, Union membership should be a way for us to punch a grade higher above our weight. In this context, EU funding is an avenue of opportunity in itself, not some simple add up to Government’s capabilities to be used at its own whims following ministerial meetings behind closed doors.

How can we have a true recovery plan bringing solace to hard hit sectors of the economy when the plan is kept under wraps without a proper public and stakeholder consultation exercise? Countries all around us have undertaken a wide crosssector consultation involving hundreds of stakeholders. This consultation is indeed expressly prescribed in the Recovery and Resilience Mechanism regulations which contain clauses requiring Member States to involve stakeholders.

The Recovery plan to be submitted to the European Commission should in fact include a section detailing consultations with stakeholders, including for example with local and regional authorities, social partners, civil society organisations or youth organisations. Evidently, Malta’s page will be empty, like the webpage dedicated to this exercise on the internet website in gov.mt

I am concerned that Government’s less-than-professional way of leading this process, devoid of the necessary public and stakeholder consultation, will have its impact on the efficiency to deploy these funds as soon as possible. It begs repeating, the first funds can already be deployed in July. It will be hard for Malta to aim for that now. Instead of reacting with defensive stunts, Government should launch a systematic stakeholder consultation exercise with several sectors of society to ensure that the national plan, when submitted, responds to the true aspirations of Maltese society.