Gozo as a region would be unable to apply for EU structural funds, says PS

Moves towards turning Gozo into a region would result in less EU funds at its disposal, said Parliamentary Secretary for EU Funds and Social Dialogue Aaron Farrugia.

He spoke out after the PN called for a regional council to be established in Gozo, instead of a Regional Development Authority. The government had proposed the setting-up of such an authority by which, it had previously said, Gozitans will be assured that the island will see sustainable development and economic growth, through a planned strategy, up to 2030. The authority, the government said, will have a central and executive role, and will revise this plan every three years.

The PN however, said that they will be voting against this proposal, arguing that it did not go far enough and proposing the establishment of a regional council for Gozo. Such a council, the PN had previously said, would consist of councillors elected by the Gozitans, and would have more power.

The PN’s proposed council would have executive power over issues that would affect Gozo and its development.

Parliamentary Secretary Aaron Farrugia (right) has, however, hit out at the PN’s proposal, saying that turning Gozo into a region would effectively mean that Malta’s sister island would no longer be able to apply for ‘structural funds’. These Cohesion Policy funds, he said, include the European Regional Development Fund (ERDF), the European Social Fund (ESF), and the Cohesion Fund (CF).

While the government is proposing an Authority, the PN is proposing something more regional: a regional council with more powers, deciding their own future, Farrugia said. “For me, this does not make economic sense. If we are saying that Gozo would be a region deciding matters for itself, with its own funds, etc., then when it comes to EU funds it would be a lose-lose situation for both Malta and Gozo, simply because Gozo falls under the Nomenclature of Territorial Units for Statistics (NUTS) level 3 according to the Eurostat parameters. “Regions in Europe are categorised as NUTS 1, 2 or 3” said Farrugia. “Due to to its size and population, Gozo lies at the NUTS 3 level. In order to apply for EU structural funds, a region needs to be at level 2.” He pointed out that Gozo is not even supposed to be on NUTS 3 level and is there as an exception.

“If the PN is saying that Gozo should become a region, lead themselves and make their own applications then, from day one, it would not be able to apply for one cent of the EU’s structural funds.

“Malta and Gozo together are on NUTS 2 level and so can apply for such EU Structural Funds, but Gozo alone – due to the size of the population – falls under NUTS 3 level and cannot apply, were the island to become a separate region. Malta would still remain NUTS 2.”

Farrugia pointed out that there is, however, another problem. “There are certain EU programme funds for which one can apply on reaching a certain population threshold. If Gozo were to go out as a region on its own, there are certain programmes for which Malta would no longer be able to apply since we would not be able to continue including Gozo as part of Malta.”

Asked if Gozo becoming a region would open up different forms of funding, Farrugia said that this would not come from EU structural funds and that the type of funding that would be available were not comparable with the EU’s structural funds.

What the government has been doing, he said, is applying for EU structural funding as a country, while ring-fencing 10 per cent of these funds for Gozo. “This is the minimum and, in reality, Gozo can take over 10 per cent.”

This regional proposal is not a good idea in the economic sense, said Farrugia.

“The most important funds for EU countries are the EU’s Structural Funds, which are used for infrastructural projects, security, skills, job creation, the standard of living, etc.”