news

EU fund allocation comes as big disappointment

By Kurt Sansone

Brace yourself for the letdown of the decade.

The funds Malta will obtain from the European Union have long been considered a topical issue. And now figures made available to MaltaToday indicate that the Maltese Islands could benefit from only a net average income of around Lm4.3 million annually - a far cry from the hordes of money promised by overzealous Europhiles.

Speaking to MaltaToday, the Secretary General of the European Greens Arnold Cassola said that according to the budget awarded by the EU for the period 2004-2006, candidate countries could expect fund allocations of between Lm40 and Lm73 per person on an annual basis.

With Malta’s population established at around 380,000, the structural and cohesion funds would hover between Lm15.2 million and Lm27.7 million. If one were to take the average amount of around Lm56 per capita, Malta would get approximately Lm21.3 million from the EU.

But Malta will not only be getting money from the EU it will also have to pay an annual membership fee like any other member state. And the fee is expected to be between Lm16-18 million yearly. The membership fee is calculated as a percentage of VAT, the annual GDP and a portion of the customs duties of the individual member states.

This means that if one takes an average fee of Lm17 million for Malta and an average fund allocation of Lm21.3 million, the country would only benefit from a net average income of around Lm4.3 million.

However, Dr Cassola stressed that given Malta’s small population, government could negotiate a per capita allocation on the upper end of the scale and possibly beyond the established parameters.

The Alternattiva Demokratika spokesperson added that Malta could benefit from additional funds allocated for specific areas such as education, science and research, and small and medium enterprises. The EU offers a number of programmes in each of these areas and funds are allotted according to the projects proposed by companies and individuals in the member states.

Dr Cassola explained that the third way of obtaining funds would be through the rural development plan, which could see Malta in line for more than Lm3 million. But, Dr Cassola stressed, Malta needs to draw up its own rural development plan and that must be handed in later on this year.

When asked whether he was satisfied with the figures, Dr Cassola did not mince his words. "The amount of money budgeted by the EU for candidate countries is 25 per cent of the total amount of money that should have been made available. The European Greens have asked that funds which had been allocated for 2002-2003 for enlargement be re-allotted despite the fact that no new members will be entering the EU in that period. This is a time to say no to the EU and unfortunately Malta has been the only candidate country that has not voiced its disapproval."

Malta, Cyprus and Slovenia are the richest countries among the applicant states and thus the countries most likely to suffer from the lack of funds. However, Cyprus has been allotted extra funds to cater for the problematic northern part, which is stricken by poverty.

Dr Cassola emphasised the need for Malta to team up with other applicant countries during the negotiating process to have a more forceful voice. "The Baltic States are already planning to face the EU as a united front and this week the central European countries, Hungary, Czech Republic and Slovakia met for the first time to co-ordinate their respective positions," he said. "The Greens believe that negotiations should be conducted on a multilateral basis rather then on an individual basis between the EU and the applicant countries."