Bajada secures EP backing for stronger recognition of island realities in future EU budget

Labour MEP Thomas Bajada has secured strong backing in the European Parliament's Economic and Monetary Affairs Committee (ECON) for measures aimed at strengthening the recognition of island regions such as Malta in the European Union's next long-term budget framework.

The committee approved its position on the future National and Regional Partnership Plans on Thursday, adopting a report drafted by Bajada in his role as rapporteur. The plans are expected to form a key pillar of the EU's next Multiannual Financial Framework (MFF), which will govern the bloc's spending priorities from 2028 onwards.

The report outlines the European Parliament's vision for the investment of billions of euros in EU funding across member states and regions. It supports the creation of new National and Regional Partnership Plans that would consolidate cohesion policy, agricultural funding, fisheries support and home affairs funding under a single framework.

Under the European Commission's current proposal, Malta's co-financing rate would be reduced to 40%, meaning EU funds would cover 40% of project costs while the remainder would need to be financed by the government or beneficiaries.

Bajada's report calls for islands such as Malta to benefit from a preferential co-financing rate of 75%, arguing that island regions require additional support to compete fairly within the European Single Market.

He described the proposal as an important step towards ensuring islands have the necessary tools to overcome the permanent challenges associated with insularity and to fully benefit from participation in the Single Market.

The report also introduces, for the first time, a dedicated chapter focusing on geographically disadvantaged areas, including islands. Similar provisions have traditionally been reserved for outermost regions and the Aegean islands.

Throughout negotiations, Bajada argued that future EU funding mechanisms must take into account the structural disadvantages faced by island states and island regions.

"Malta, just like other islands, cannot be treated in the same way as mainland regions. Insularity creates permanent challenges linked to transport, connectivity, supply chains and market size. These realities are not theoretical; they directly affect families, workers and businesses," he said.

Bajada pointed to recent disruptions to maritime connectivity caused by severe weather as a reminder of the vulnerabilities faced by island communities.

"Throughout the past two years, I consistently reminded everyone that insularity is a daily reality. This is why Europe's future budget must provide greater flexibility, targeted support and fairer funding conditions for islands," he said.

The report also highlights the importance of democratic accountability and local participation in the management of EU funds. It warns against creating overly rigid links between funding allocations and country-specific recommendations or macroeconomic indicators, arguing that communities should not be penalised for challenges beyond their control.

"Communities cannot be managed from spreadsheets in Brussels. European funding delivers the best results when local authorities, social partners, civil society organisations and citizens are involved in shaping priorities from the ground up," Bajada said.

Following the vote, the Maltese MEP said EU funding should remain focused on people, communities and regions rather than becoming a purely technocratic exercise.

"European funding must strengthen resilience, improve wellbeing and help communities prepare for the challenges of the future. It must remain connected to the realities that citizens experience every day, including those living on islands across Europe," he said.

Bajada said the committee vote sends a strong signal as negotiations on the next MFF continue.

"Europe must be economically responsible, territorially fair and democratically accountable. I will continue working to ensure that the next EU budget delivers real opportunities for Malta, Gozo and island regions across Europe, while placing people's wellbeing and quality of life at the heart of investment decisions," he said.

MEP Peter Agius embraces Bajada’s report

Nationalist MEP Peter Agius welcomed the report submitted by Bajada, saying it reinforces his own efforts to secure “more funding for islands”.

He also reiterated his call for “a specific EU Funding Chapter for Gozo” within the Regional Policy Committee, the lead committee on the EU’s long-term budget, noting that the proposal already has the backing of several MEPs in ongoing European Parliament negotiations.

In a social media statement, Agius confirmed that he had received a letter from MEP Andrey Novakov, coordinator for the Committee of the Regions at the European Parliament, validating his amendments calling for Gozo to receive a dedicated budget as an island facing double insularity and having specific needs.

He went on to say that the European budget for the next seven years will include a specific chapter for Gozo, adding that it should be drafted by Gozitans.

“We can achieve a lot for Malta in Europe,” Agius said. “Especially when we push our case from several sides like this.”

Agius looks forward to update the Maltese public on the progress of these negotiations.