EU's Fit for 55 was 'rushed', lacked proper impact assessment, Abela says

Certain European Union legislation such as the Fit for 55 and the Mobility Package have been “rushed” and implemented without a proper impact assessment, Prime Minister Robert Abela stated.

Abela was speaking during a meeting between government and rapporteur for the EU and the future of the Single Market, Enrico Letta.

Letta, who is a former Italian Prime Minister, has been tasked with reporting on the EU’s single market. In previous statements and media interviews, Letta said that he would propose shaking up policy on state subsidies, as well as measures to prevent brain drain.

Letta is currently in Malta as part of his tour around EU member states, after which he is expected to present a report on the single market which would lead to changes in one of the EU’s main economic policies. 

During the meeting, which the media was invited to attend for the first few minutes, Abela stated that Letta’s review of the Single Market should focus on the EU’s citizens and their needs. Abela outlined that connectivity with the mainland is a lynchpin for Malta’s competitiveness. 

Here he noted that certain legislation, such as the Fit for 55 and the Mobility Package have been “rushed,” consequentally delivering disproportionate effects on member states. Abela called for a legislative process which takes into consideration member states like Malta.

At the beginning of 2024, Malta and all other member states became subject to the EU’s emissions trading scheme which is part of the Fit for 55 package. This measure will levy a cost on the maritime industry to offset their carbon emissions, each time they sail into an EU port, or from one EU port to the other. This will be heavily taxing on Malta and Cyprus in particular, given that trade in the two member states is primarily supplied through the maritime sector. 

During Letta’s meeting in Malta, Abela singled out access to medicines as a regulatory matter that needs to be ironed out in order for the single market to promote equity.

With regards, to state aid, Abela said that this remains crucial with regard to transport, digital connectivity and energy, along with, “the respect for national competence when it comes to taxation policy.”

In 2024, government is to spend some 5% of its annual budget on energy subsidies, keeping inflation artificially low while international prices remain susceptible to international developments. The European Commission was among other international entities that invited Malta to phase out its energy subsidies as soon as possible.

From his end, Enrico Letta said that until he submits his report on the single market, his door remains open for suggestions. 

Letta also remarked that when the single market was created 30 years ago, the EU was in a completely different situation, noting that global competition has sky-rocketed since then.

PN MEP candidate reacts

Later on Monday, PN MEP candidate Peter Agius stated that despite Abela's statement, the European Commission had warned Malta that it will be heavily affected by Fit for 55.

Agius stated that the real issue is that, "government sat on its laurels for 2 years and then voted IN FAVOUR without doing its homework!"