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Gonzi clinches €1.12 billion in EU funds under new budget

Prime Minister claims successful closure of negotiations on EU financial framework with estimated €1.128 billion, or net €627 million over the next seven years in funds.

8 February 2013, 12:00am
Prime Minister Lawrence Gonzi (centre) with personal assistant Leonard Callus (left) and permanent representative Marlene Bonnici and EU advisor Richard Cachia Caruana (right).


Hard-fought negotiations in Brussels have seen Prime Minister Lawrence Gonzi obtaining €1.128 billion in funds for Malta in the next financial period covering the EU's budgets from 2014 to 2020.

The funds include €20 million more in directly-allocated funds of cohesion and agriculture funds than Malta would have obtained had it remained a 'less developed' country under Objective 1 funding, the OPM said in a statement.

Heading into yesterday's discussions, Gonzi stressed Malta's consistent position that it should not be penalised for its economic progress after just one full financing period (2007-2013).

"Today's deal in the European Council means that Malta has secured a total of €914 million in funds under cohesion and agriculture. Had Malta retained its convergence (Objective 1) status under the 2014-2020 financial period, it would have received €892 million under these two headings. The deal will therefore actually be a slight increase (€22 million) in these policy areas than would have been the case had it remained an Objective 1 region. Moreover, there is a recognition of the permanent handicaps of island member states in the conclusions, in line with the Lisbon Treaty," the OPM said in a statement.

The indicative overall funds which Malta will receive under the 2014-2020 framework estimated to be €1.128 billion, which compares well with the €1.115 billion Malta was allocated during the current 2007-2013 period.





It also sees an increase of €109 million for Malta over the original Commission proposal of June 2011 before this Commission proposal was cut by €85 billion overall in commitment appropriations. Malta is not only expected to benefit more in terms of allocations, but is also expected to pay less to the EU over the next seven years when compared to the Commission proposal.

It is estimated that Malta's net position, after its contribution to the EU budget, will be €627 million. This compares with an estimated €478 million net benefit under the original Commission proposal. 

"This agreement is a landmark result and a major success for Malta," Prime Minister Lawrence Gonzi said.

"The outcome was excellent for Malta in view of the various challenges facing the EU's economy, the overall budget decrease and the entrenched positions of other member states... it will remain a priority for the government to continue to facilitate and maximise the use of EU funds."

The government has decided that a good part of the additional allocation under agriculture will be earmarked for Gozo. "This will ensure that Gozo receives more funds than it currently has ring-fenced under the 2007-2013 financing period. For the 2014-2020 period, apart from the 10% under Cohesion Policy (€78 million), a further €32 million (23% of Malta's agricultural allocation) will be ring-fenced for Gozo to bring the minimum total allocation for Gozo (Cohesion and Agriculture) to €110 million," the OPM said.

In addition to the funds, Malta will benefit from a number of horizontal measures which include the extension of the period available for the implementation of committed projects from three to four years, allowing Malta more time to complete these projects, and ensuring that funds will not be lost; there was also the agreement to make non-reimbursable VAT on these projects eligible for funding.

"The deal is significant as it is juxtaposed against Europe's worst economic crisis in decades and a resulting substantial decrease of €33.6 billion in the overall commitment appropriations of the multiannual financial framework when compared to the current financial period (2007-2013).

"The result is all the more important as Malta's economic growth over the past few years means that it no longer qualifies for the highest level of benefits from the EU's Cohesion Policy funds and has been upgraded from being a less developed region to what is now known as a 'transition region'," the OPM said. 

The agreement is a result of over a year and a half of negotiations following the European Commission's original proposal in June 2011, on the basis of which Malta would have received a total of €715 million under Cohesion Policy and Agriculture funds. As negotiations proceeded, the Cyprus Presidency proposed a cut to the EU budget proposal which would have reduced Malta's allocation in these policies to €656 million.

Over the months, Gonzi held discussions with the President of the European Council, the President of the European Commission and fellow heads of government in Brussels, Malta and other capitals to explain the effects that such dramatic cuts would have on Malta.

The President of the European Council's proposal that emerged following the bilateral meeting held back in 22 November 2012 included an additional top-up of €200 million for Malta's cohesion policy allocation, bringing Malta's allocation to €879 million.

That summit however concluded without agreement. 

pierre gaffiero
GONZI SAYS'I GOT MY MONEY FROM THE E.U.AND FURTHER SAYS I WONDER WERE THE OTHERS WILL THERE MONEY FROM? WHAT A SCAM WHAT A RIDICULAS MAN!! I TELL GONZI WE ARE ALL IN TRE EU WHATEVER THE EU GIVES HIM THEY ARE ACTUALLY GIVING THE MALTESE PEOPLE, LABOR WOULD HAVE GOT THE SAME BECAUSE THE EU YOU TAKES INTO CONSIDERATION MALTA AS A MEMBER OF THE EU AND IT ESSENTIALS AND NOT BECAUSE GONZI SAYS I GOT THE MONEY, HE WILL GET HIS ANSWER ON THE 10TH OF MARCH THAN WE SEE WHAT HIS WAGE WILL BE IN HIS NEXT JOB!! PROUD TO BE MALTESE.
pierre gaffiero
GONZI SAYS'I GOT MY MONEY FROM THE E.U.AND FURTHER SAYS I WONDER WERE THE OTHERS WILL THERE MONEY FROM? WHAT A SCAM WHAT A RIDICULAS MAN!! I TELL GONZI WE ARE ALL IN TRE EU WHATEVER THE EU GIVES HIM THEY ARE ACTUALLY GIVING THE MALTESE PEOPLE, LABOR WOULD HAVE GOT THE SAME BECAUSE THE EU YOU TAKES INTO CONSIDERATION MALTA AS A MEMBER OF THE EU AND IT ESSENTIALS AND NOT BECAUSE GONZI SAYS I GOT THE MONEY, HE WILL GET HIS ANSWER ON THE 10TH OF MARCH THAN WE SEE WHAT HIS WAGE WILL BE IN HIS NEXT JOB!! PROUD TO BE MALTESE.
Joseph Bonanno
Let me see. EU net annual contribution to Malta: 89.5 million. Malta's annual debt interest payments: 150 million. Yes, sound finances from Gonzi and co.. Just think if the PN hadn't screwed up Malta's finances how much better off we would be!
michael sant
...skocciz ghandu ragun biex ibiegh ..... issa naraw il-buzu ta' mannarinu kemm se jkun pront biex jikkoregi l-figuri li hargilna siehbu tar-rahal fuq kemm jiswa l-programm elettorali ta' goznipn .... skont il-kalkoli korretti ta' skocciz gonzipn irid jara minn fejn se jgib 637 miljun ewro ..... nahseb li bihom tista' tibni xi erba' vapuri ghall-gass u tibni xi ghaxar tankijiet kbar daqs il-bazilka ta' san pietru f'ruma biex tahzen il-gass .... u probabbli jkun baqaghlek xi haga fil-but ukoll .... sakemm ma tithajjarx tuzahom ghal xi commission minflok ... skocciz, isma' minni siehbi, cempel u applika forsi fl-ahhar ikun imissek int ukoll !!!! - int zgur tifhem x'qed nghid !!!! u ikollok xi ittra, ibghatha bil-posta .... ghax jien hemm ghamilt minkejja l-parir tieghek ....... u ifhimni sew !!!!!
Tony Fenech
@fenea taf x'ma semmejtx kemm se nghatu VAT lura lilom, jigifieri jekk toqghod tqies issieb il Lm100 li kien ivvinta Il Professur Demarco li kienu sejrin ituna fuq platt ma hu xejn , u haga ohra ma semmejtx li jekk nilhqu niehduhom ghax iried ikun hemm ragun ta xhiex sejrin niehduhom bhal ma gara kull ma hadna terz ta kemm suppost hadna dawn l-ahhar ghaxar snin jigifieri xi €286miljun biss u jekk tghodd kemm hallasna VAT ma hadniex hafna inkomparabli. Fenea ghax ma tghidx il verita?
pierre gaffiero
YES GONZI SMILE! AND TELL US HOW MUCH OF THIS MONEY SHALL BE USED TO COVER UP YOUR MISTAKES AND BILL THE PEOPLE HIGHER ELECTRICITY BILLS.WHEN GONZI SMILES BEWARE HE ONLY SMILES FOR THE PN AND NOW OF COURSE SIMON.
Il Googol
Fenea.....LOL
louis fenech
prosit sur gonzi. malta u il poplu malti kollu se jgawdu min dawn il fondi. HAGA WAHDA CERTA HEMM LI KIEN GHAL PL U JOSEPH MUSCAT DAWN IL FONDI MA GEWX. U ISSA QED JITKAZAW GHAX GEW DAWK IL FONDI BISS. ISTHU.....ISTHU.........ISTHU
Dora Buttigieg
GonziPN has manged to get 1.128 billion over 7 years. Let's say we manage to apply and receive 90% of the funds, so we will get 1 billion. The 165 million including in the Commission's list in the form of connecting Europe have been reduced to 94 million which according to the footnote includes €63 million to support projects in the energy sector such as connection to the European gas network. The cost of the gas pipeline is 700 million and GonziPN expected funds from the EU. Now we have confirmation that only 63 million will be given. Malta will have to fork out the remainder of 637 million. Then there is the interconnecting cable expense of a further 200 million. Our contribution is 501 million. I do not agree that Gonzi got such a good deal.
brian farrugia
What is the use if the funds are not used completely or properly? What a sham and waste. What hipocrisy.
GRACE PAVIA
What this actually means is that they reduced the original €680 to €627, at the same time making us lose Obj 1 status.
Francis Chircop
May I ask? If our caretaker Prime Minister wasn't physically there or else someone else represented him, how much less would have we received? As I see it, it seems that his presence made no effect on the sum approved. This had already been allocated according to the criteria established. So whats the fuss GONZ. DID YOU SAY GOODBYE TO EVERYONE? BECAUSE THE END IS NEAH
mario borg
Gonzi told us 'Judge me by the results' Up till the end of 2012 only 33% of these EU funds has been used by Malta!! Let's do some simple maths; Total Funding to Malta - € 1,128 Million Malta's contribution to the EU - € 501 Million Net Balance to Malta - € 627 Million Now if we judge Gonzi by his results we must take the 33% of those € 627 Million. So if we take in to account the past performance by Gonzi the total sum will be around € 207 Million, and this only if the Govt work hard to get that money as projects and they have to meet very strict criteria and specific deadline, and we all know what a failure the PN is in all these sectors !!
mario borg
Gonzi told us 'Judge me by the results' Up till the end of 2012 only 33% of these EU funds has been used by Malta!! Let's do some simple maths; Total Funding to Malta - € 1,128 Million Malta's contribution to the EU - € 501 Million Net Balance to Malta - € 627 Million Now if we judge Gonzi by his results we must take the 33% of those € 627 Million. So if we take in to account the past performance by Gonzi the total sum will be around € 207 Million, and this only if the Govt work hard to get that money as projects and they have to meet very strict criteria and specific deadline, and we all know what a failure the PN is in all these sectors !!
mario borg
Gonzi told us 'Judge me by the results' Up till the end of 2012 only 33% of these EU funds has been used by Malta!! Let's do some simple maths; Total Funding to Malta - € 1,128 Million Malta's contribution to the EU - € 501 Million Net Balance to Malta - € 627 Million Now if we judge Gonzi by his results we must take the 33% of those € 627 Million. So if we take in to account the past performance by Gonzi the total sum will be around € 207 Million, and this only if the Govt work hard to get that money as projects and they have to meet very strict criteria and specific deadline, and we all know what a failure the PN is in all these sectors !!
Michael Spiteri
Gonzi & co a complete failure!!! Simple maths: 1.12 Billion Gross = 627 Million Net, in 7 years = 89,57 Million / Year = 245401 Euro / day Since Maltese population = 417,617 = 59 euro cent / day / person. Considering a packet of Twistees snack cost approx 60 euro cent from a vending machine we can conclude that Dr Gonzi managed to bring the value of a packet of snacks daily per person. Good achievement !!! Well done !!!
Il Googol
1.127b euros in 7 years equivalent to 161m euros annual which means a mere 3 drops in the ocean, half of which we have to contribute. Orgasmic euphoria for only 11 drops in the ocean, in 7 years. LOL
m borg
Gonzi was mucked by the EU, whilst securing an extra €22 million in funds EU wrested from him €149 millions in contributions which means Malta has been mucked by €127 million short. Viva gonzi tghe great negotiator. I knew it that there was something wrong as soon as I read TOM's prominent headline yesterday evening announcing the new EU funds figures.
m borg
It is estimated that Malta's net position, after its contribution to the EU budget, will be €627 million. This compares with an estimated €478 million net benefit under the original Commission proposal. ... So it looks tha while increasing the original deal with 22 million euros Malta's contribution will increase by 149 million euros. I for one do not consider Malta's share a clinche it is rather more of a slapp in the face and gonzi smilling about it.
vc
GonziPN did not need much convincing to do tell the EU that we need the funds (or should we say bailout) as no economic progress was achieved in the last 7 years. Perhaps a new gov. will make better use of these funds and see that no commissions are paid through them.
Il Googol
nofs qattra f' ocejan
michael sant
.... u l-mistoqsija krucjali sa fejn naf jien sa issa ghadha ma gietx indirizzata ..... GONZIPN INGHATA FONDI GHALL-FAMUZ PIPELINE TAL-GASS JEW LE? DIN HI HAGA IMPORTANTI .... U SA ISSA HADD GHADU MA TA EBDA TAGHRIF DWARHA ...... wisq nibza' li jekk thares lejn l-imgiba passata ta' gonzipn dan ifisser li ma wasalniex ..... ghax kieku min jaf kemm daqq ta' trombi ..... nistennew u naraw .....
GYK
This falls far short of the annual Mitt Miljun Lira so much lauded by EFA @ Co. Whatever happened?
Rene Zammit
1.12 Billion gross will make 600 Million NET. Roughly 89.7 Million per annum. I hope that these funds will be used cleverly!
Anthony Abela
1.12billion my foot. What about our half a billion contribution. That leaves us with 627 million for 7 years. Far from the 1.12 billion
Joe Smith
When shall we know what we REALLY got??
David Coleiro
This amount is much less than what we obtained for the period 2007-2013. One has to considercinflation in the total which means that we got about 25% less. Also we have spent and got a small amount of money up till now so we must be more efficient
Albert Fenech
"It is estimated that Malta's net position, after its contribution to the EU budget, will be €627 million. This compares with an estimated €478 million net benefit under the original Commission proposal." Are we therefore to understand that Malta's actual "acquisition" is that of é627 million over seven years, that is é89.5 million per annum, which in Malta Liri is LM36 million per annum. How much did Malta gain annually under the 1974 lease agreement to NATO - naturally put in today's money value equivalent? It's worth figuring out. ALBERT FENECH Qawra
charles bugeja
if 50 million euro is a drop in the ocean, according to LG we will receive 2 drops each year for 6 years. Elementary mr Watson.Elementary.
Patrick Grixti
and yet Cachia Caruana is still calling the shots despite being voted out in parliament.... what a bunch of stooges
Nigel Lawrence
1128 million looks nice in one number, but it's less than 200 (by a long shot) a year!
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