EU island regions not benefiting from European Fund for strategic investments

The European Investment Bank (EIB) data shows that island regions are not managing to benefit from the European Fund for Strategic Investments (EFSI). Currently, both Malta and Cyprus feature at the bottom of the list for expected investments mobilised per million euros of GDP under EFSI, former Prime Minister and Maltese MEP Alfred Sant said when he addressed the Islands Commission Conference – “How can the post 2020 Cohesion Policy meet EU Islands challenges?” at the European Parliament.
“The main problem here is that such funds are not structured with island economies in mind. They do not take into account that these economies often lack the needed good economic endowments, a large population, and proximity to other regions.”
Dr Sant said EU Competition rules in the context of state aid in islands should be structured much more differently, much more clearly.
“We need to continue the pressure to downscale the way that competition policy gets applied to island and peripheral regions, in this case, also in the context of state aid in the form of Cohesion funding. Island by island, region by region, there should be a full and clear exemption from competition rules as they apply to state subsidy and support. There is no way by which such exemptions can affect in any manner, the operations of the European single market.”
The Maltese MEP proposed the setting up of a suitable EU special fund for EU regions with “special” geographical conditions or “handicaps”.
“The current tools that have been designed for the single market approach have tried to solve or adapt to higher developed regions themselves. These are tools that need to be adapted to the needs of island regions. We need to make these funding tools the most effective. From a horizontal view of European funding, it is very important that new funds (such as the Defence Fund), or new competition-based methods of funding, such as the European Fund for Strategic Investments (EFSI), do not undermine the strategic long-term perspective of Cohesion Policy.
We should present the case of EU islands within a future Cohesion Policy with focused demands regarding the tools that we should put forward. We need to now prioritise on the long battle of insular regions to have geographical characteristics taken into account when calculating the development level of EU regions.We need to make the case for the insular and peripheral nature of regions to be taken into account as indicators additional to the per capita GDP in order to achieve socio-economic cohesion across all EU regions.”
Dr Sant argued that island and peripheral regions must also strongly advance the case for regional development.
“Shifting available funds towards a levered financial profile, on the grounds that this would mobilise greater volumes of money will be counterproductive for those at the periphery of Europe. Grants must continue as a centrepiece to compensate for the disadvantages that they need to overcome, especially in the context of an economic and monetary union.”
The Conference was organised in preparation for the ongoing discussions on the next Multi-Annual Financial Framework (MFF) post 2020 and the European Commission proposals expected this month. The Conference was attended by MEPs representing EU islands, representatives from different island regions and Corina CRETU, Commissioner for Regional Policy.

Maltese Version – ĠŻEJJER TAL-UE MHUX IGAWDU MINN FONDI GĦALL-INVESTIMENTI STRATEĠIĊI

Informazzjoni maħruġa mill-Bank Ewropew għall-Investiment turi li l-gżejjer tal-UE mhux qed jirnexxielhom jibbenefikaw mill-Fond Ewropew għall-Investimenti Strateġiċi (EFSI). Bħalissa, kemm Malta u kemm Ċipru jinsabu fl-aħħar tal-lista tal-investimenti li mistennija jkunu mobilizzati għal kull miljun Ewro ta’ Prodott Gross Domestiku taħt il-fondi tal-EFSI. Il-Kap tad-Delegazzjoni Laburista fil-Parlament Ewropew Alfred Sant qal dan waqt il-Konferenza mtella’ mill-Kummissjoni Ewropea dwar il-Gżejjer “Kif tista’ l-Politika ta’ Koeżjoni tindirizza l-isfidi tal-gżejjer wara l-2020?” fil-Parlament Ewropew.

“Il-problema ewlenija hija li dawn il-fondi mhux strutturati u mfassla għall-ekonomiji tal-gżejjer. Jinjoraw li l-ekonomiji tal-gżejjer ħafna drabi mhumiex mogħnija bl-ekonomiji meħtieġa, ma għandhomx popolazzjoni kbira u mhumiex viċin reġjuni oħra.”

Dr Sant qal li r-regoli tal-kompetizzjoni tal-UE fil-kuntest tal-għajnuna tal-istat għandhom ikunu strutturati b’mod differenti ħafna milli huma bħalissa, għandhom ikunu aktar ċari.

“Għandna nkomplu nagħmlu l-pressjoni biex il-politika tal-kompetizzjoni tkun applikata b’inqas strettezza fil-gżejjer u ż-żoni tal-periferija, f’dan il-każ ukoll fil-kuntest tal-għajnuna tal-istat fil-forma ta’ fondi ta’ koeżjoni. Minn gżira għal gżira, minn reġjun għal reġjun, għandu jkun hemm eżenzjoni sħiħa u ċara mir-regoli tal-kompetizzjoni kif applikati għas-sussidji u l-appoġġ mill-istat. M’hemm l-ebda mod li bih dawn l-eżenzjonijiet jistgħu jaffettwaw l-operazzjonijiet tas-suq uniku Ewropew.”

Dr Alfred Sant ippropona t-twaqqif ta’ fond speċjali tal-UE apposta għal reġjuni tal-UE b’kundizzjonijiet ġeografiċi ‘speċjali’ jew ‘diffikultużi’.

“L-istrumenti attwali li ġew imfassla għas-suq intern huma adattati għal reġjuni żviluppati li jeħtieġ ikunu adattati għal ħtiġijiet tal-gżejjer. Dawn l-istrumenti għandhom isiru aktar effettivi. Huwa importanti li fondi ġodda (bħall-Fond tad-Difiża), jew metodi ġodda ta’ finanzjament bbażati fuq il-kompetizzjoni, bħal Fond Ewropew għall-Investimenti Strateġiċi (ESFI), ma jdgħajfux il-perspettiva strateġika fit-tul tal-Politika ta’ Koeżjoni.

Għandna nippreżentaw ir-realta` tal-gżejjer fi ħdan politika futura ta’ Koeżjoni li tiffoka fuq il-ħtiġijiet tal-istrumenti li għandna naħdmu bihom. Irridu nagħtu prijorita` lid-diffikultajiet taż-żoni insulari biex il-karatteristiċi ġeografiċi jiġu kkunsidrati meta jkun ikkalkolat l-iżvilupp tar-regjuni tal-UE.”

Dr Sant qal li l-gżejjer u r-reġjuni fil-periferija tal-UE għandhom jisħqu fuq l-iżvilupp reġjonali.

“Iċ-ċaqliq ta’ fondi disponibbli lejn profil finanzjarju li jrendi, fuq il-bażi li dan jimmobilizza aktar volumi ta’ flus hija kontroproduttiva għal dawk fil-periferija tal-Ewropa. Is-self għandu jibqa’ fiċ-ċentru biex jagħmel tajjeb għall-iżvantaġġi li dawn ir-reġjuni għandhom, speċjalment fil-kuntest ta’ għaqda ekonomika u monetarja.”

Il-Konferenza kienet organizzata bħala parti mill-preparazzjoni tad-diskorsi għal qafas finanzjarju multi-annwali wara l-2020 u l-proposti tal-Kummissjoni Ewropea li mistennija jkunu ppreżentati dan ix-xahar. Għal Konferenza kien hemm preżenti Ewroparlamentari li jirrappreżentaw lil gżejjer, rappreżentanti minn gżejjer differenti u Corina Cretu, il-Kummissarju tal-Politika Reġjonali.