27,000 Maltese can vote in Brexit referendum

In 1956, Malta went to the polls to vote in a referendum on whether the country should become part of the UK.  77% voted for integration but the minimum needed was not reached and eight years later Malta went on to obtain independence from its colonial masters.  

Now, 60 years later, the centuries-old relationship between the two countries could take another twist, with some 27,000 Maltese people residing in the UK eligible to vote in a referendum which could see Britain exit the EU. And their vote could be pivotal.  

Citizens from EU countries – with the exception of those from Ireland, Malta and Cyprus – cannot vote in Thursday’s referendum.

But the vote of almost half a million European migrants could prove decisive. According to data published by the Office of National Statistics in August 2015, there are 383,000 Irish citizens resident in the UK, in addition to 27,000 Maltese citizens and 60,000 Greek-Cypriots.

In total, 1.3 million Commonwealth citizens are eligible to vote.

One of the Maltese citizens who will be casting his vote is academic and artist John Baldacchino, who in comments to MaltaToday said that the referendum outcome is “too close to call.” 

The most recent polls show that the two camps are neck and neck and despite a late surge for the Leave campaign this could be neutralised by the murder of Labour MP and ‘Remain’ campaigner Jo Cox.  

Asked how he intends to vote, Baldacchino – who lives in Scotland – said: “I tend to be a federalist and I am not keen on nationalism of all sorts.

“Two years ago, I voted against Independence in Scotland not because I favour a Union, but because like many others I would prefer a British Federation of four nations with home rule (which was an option denied to Scottish voters by the Tory government). Likewise I would vote for Britain to stay in the EU because I believe in a Federal Europe and not in a closer Union.”

The chair of Arts Education at the University of Dundee added that he supports the notion of subsidiarity but also the EU, “especially if it were closer to its original ideal of a Europe that has said no to War and yes to cooperation. We are not yet there and often I doubt it, especially when I see how the North-South divide in the EU is still palpable. Yet I still think that Britain needs to be IN and the EU needs to continue to evolve more towards becoming a Green and Social Europe.” 

Working class voters, especially in northern England, are being seduced by the Leave campaign led by the likes of popular Tory MP Boris Johnson and far-right leader Nigel Farage. 

Asked whether working class Britons are turning against the EU, Baldacchino said that it is difficult to assess what is true and what is conjecture. 

“It is a close contest and so various ideas and various notions are spread. Having said that, class matters here but I see this differently. Class could be played as a fear card when it comes to immigration. The point is that immigration in Britain has increased not simply because it is in the EU but because of other matters. However the narrative of immigration is played on those who feel very vulnerable in society,” Baldacchino said. 

Noting that the OUT vote is dominated by right-wing politicians “who are not that keen on workers’ rights” he added that the same people who play the immigration card to make a claim for Brexit are not saying how they would safeguard workers’ rights gained from EU membership if the UK opts to exit the bloc.

On the possible consequences of a Brexit, Baldacchino said “if the UK leaves, you could have a split of the UK, which means that Scotland would want to stay in the EU and would call for a referendum and if independence is gained it will ask to rejoin the EU. This would attract a lot of voters who voted NO to independence two years ago.”

A Brexit could also lead to the unification of Ireland with Republican and Nationalist politicians in Northern Ireland calling for a referendum for the unification of the divided island.

Baldacchino doubts whether unification is possible but notes that the Nationalist-Republican vote is big enough to have some impact on Irish and British politics. 

He added that a future EU without Britain is also hard to foresee but Baldacchino pointed out that voters are overlooking the important role Britain plays within the bloc. 

Citing former Italian Prime Minister and European commissioner Mario Monti he said that with Britain in the heart of the EU, rather than on the periphery, there would be less of a threat of a Franco-German hegemony.

“I am not sure how many Brits listened to Monti then and how many remember him now, but as someone who knows the EU well, Monti’s point about a balance of powers in the EU remains very poignant, especially in view of the palpable divide between the North and the South of the EU ¬– which often reminds me of Gramsci’s old Southern Question – then only referring to Italy, but surely related to wider powers,” Baldacchino said. 

Malta could lose an important ally 

With the UK out of the picture, Malta and other countries such as Luxembourg and Cyprus, will find it tougher to resist the pressures of the bigger countries to introduce tax harmonisation and tougher regulations on tax havens. 

Former Maltese foreign minister and European Commissioner Tonio Borg said that if the UK exits the EU, Malta could lose an important ally. 

“Malta will lose an ally inside EU as regards taxation, such as the proposed financial transaction tax, although till now unanimity is required for decisions on taxation matters,” the former PN deputy Prime Minister said. 

 “I am currently in the UK and newspapers are reporting that Ireland, Malta and Cyprus are the most worried about effects on them if Brexit succeeds.”

Although the trade relationship between Malta and the UK is strong, Borg said trade barriers may be imposed following Brexit, however these may not be necessarily imposed immediately.

Borg also pointed out that if the UK exits, all privileges enjoyed by Maltese people in UK as EU citizens will gradually be withdrawn as will the rights enjoyed by Brits living in Malta, “unless a special bilateral agreement is reached, e.g. freedom of movement and settling in UK; or tuition fees at Universities in the UK which today are the same as those applicable to UK citizens.”

He added that negotiations for a new agreement between the EU and UK will probably be very tough as the EU would want to send a message to other member states that it does not pay to leave. 

Tax harmonisation will become easier

Speaking to MaltaToday, EU expert Roderick Pace said tax harmonization will not only affect Malta’s financial services but most other economic sectors, such as gaming, tourism and manufacturing.

Pace, who is also the director of the Institute for European Studies at the University of Malta, said food and medicines are also exempted from VAT in Malta – as in the UK and Ireland.

“If the UK leaves the EU that will also be easier to change. Of course it all depends on what kind of tax harmonization is implemented in an EU without the UK and what kind of opt outs are allowed, if any, to small peripheral states like Malta, as Alfred Sant has been harping upon in the European Parliament for quite some time now.”

Pace stressed that with Britain out of the UK, “tax harmonisation in the EU will become easier. When we discuss these things we are speaking about the main pillars of our country’s prosperity. My hope is that we will not have to be dragged through all this but that sensible minds prevail in the Council and the European Parliament.”

He added that all reports seem to indicate that Brexit “will chip a little at the rate of growth of Malta’s GDP” but Pace said “fortunately the economy is doing well at the moment and the impact may not be felt, though we must not be complacent.”

Moreover, Pace said, the tourism sector may be negatively hit while Maltese travel to the UK may become more attractive.

Turning to the possible consequences in the UK, Pace said “a strong depreciation in Sterling brought about by uncertainty on Britain’s future will immediately affect their incomes.”

On the British people who live in Malta, Pace said the Maltese authorities should prepare a contingency plan on how to retain those who would wish to stay here. 

“Perhaps there is a plan already. Last February the Prime Minister said that Malta was doing like everyone else and studying the possible impact. It will not be easy for the UK out of the EU to negotiate an agreement on free movement and the price tag will not be small. So expect the British community in Malta to encounter problems,” he said.