Why Malta stands to get less money from the EU

It was a signal victory which maybe has not received adequate appreciation. It was also a sign that with a proper approach, the EU may be persuaded to forego its declarations and to ensure Malta gets the funds it wants.

Even as we go into holiday mode, the basis for the coming battle inside the EU regarding the next financial period is getting hotter, complicated by the timetable regarding the coming European Parliament election next May.

The basis is also being set locally for yet another battle here (don’t we have enough?) regarding the size of the package that Malta will get. Obviously, because that’s how we think, it will all end up arguing who got the biggest package and who got a smaller one. One can already see the signs in the partisan press.

But there are some considerations that must be made first.

First of all, one must factor in the absence of the UK and of its contribution to the common budget. The UK is a net contributor and its absence will mean less money in the kitty.

Secondly, Malta is continuing to see welcome economic growth and this has been pushing Malta out of the area where Malta remains a net receiver and towards an area where Malta will be a net contributor to the EU budget.

Since the EU works on a seven year template this move of Malta from a net receiver to a net contributor was a gradual change.

Nevertheless, the Gonzi administration managed to bring to Malta a sum of funds that even eclipsed the ones received before, at accession time and later when Malta was still a net receiver.

It was a signal victory which maybe has not received adequate appreciation. It was also a sign that with a proper approach, the EU may be persuaded to forego its declarations and to ensure Malta gets the funds it wants.

Having said that, it is always a useful exercise to examine how the funds were utilized and if they were utilised at all. There have been cases of lateness as a result of which funds risked getting lost.

Then of course one must see whether the funds were utilized in areas where they were really needed. For instance, although this is a personal opinion, a large chunk of the first funds from the EU were spent on upgrading the roads to the north of Malta when as we are seeing it is the roads in the central part of Malta that still need upgrading. Or, according to some, maybe more money should have been spent on education where our youth still fail in comparison to their counterparts abroad.

So while the sheer amount of money obtained by Malta is important, it is even more important how that money is spent and how this money helps Malta grow in the right way.

It is also important that in our political discussions we forego the temptation to score points and instead focus on truth. The fact is that Malta stands to get less funds from the EU than it got in the previous financial period so it is even more important for Malta to choose well and then to spend the funds so attracted in the best way possible.