We don’t want to reverse economy to 2012 to obtain same amount of EU funds - Aaron Farrugia

EU funds parliamentary secretary says negotiations with EU on funds are still at start, things need to develop before commenting

Malta's economy and the EU itself have changed since 2012, Aaron Farrugia said
Malta's economy and the EU itself have changed since 2012, Aaron Farrugia said

EU funds parliamentary secretary Aaron Farrugia said that while he had no problem commending the previous administration for the European Union funds package they had negotiated for the 2014-2020 period, he hoped that nobody would want to take Malta’s economy back to how it was in 2012, when the funding negotiations were concluded, in order for the country to receive the same amount of funds for the next period.

Farrugia was responding to a parliamentary question by Nationalist Party MP Robert Cutajar, who - noting that while former Prime Minister Lawrence Gonzi's administration had managed to obtain €1.2 billion in EU funds, Malta now stands to receive almost €200 million less in the financial package for the upcoming 2021-2027 period - asked what the government was doing about this.

“The Maltese economy is now stronger than it was in 2012, and the EU has also changed, because of factors such as the financial hole Brexit will leave, increased defence and migration-related costs, and other issues,” he said, pointing out that this made it challenging to maintain the same funding levels.

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“In the coming days, more information on the EU’s funding sectoral agreements with member states will emerge, and through this we will have a clearer idea of the amount of funds Malta will receive. The European Council will also need to approve all changes to funding,” he emphasised, as he advised for caution before commenting on any reductions in funds.

He underlined that Malta needed to convince the European Commission that while the country had moved forward, receiving more funds would help consolidate this momentum.

“It’s a win-win situation for us and for the EU. If we keep doing well, the single market will benefit too,” he remarked.

Simon Busuttil: Opposition wants best financial package for Malta

Nationalist Party MP Simon Busuttil noted that Malta’s economy was doing better in 2012 than it was in 2004, yet the government had still managed to negotiate a better package, with more funds, in 2012 than it had in 2004.

“The Opposition will support the government when it comes to ensuring that we negotiate the best possible outcome for the country,” he said.

Busuttil asked what the “red line” for Malta was, in terms of the lowest amount of funds it would accept.

“The red line is that we won’t agree to give more power to Brussels when it comes to taxation,” Farrugia said.

He added that the 2004/2012 argument was “not very convicing”. “In 2007, Romania and Bulgaria joined the EU, causing a 'statistical effect' which was corrected by giving more funds to the Union’s member states in 2012,” he maintained.