EU island states insularity problems need systematic approaches and solutions

The European Commission needs to find systematic approaches and solutions on state aid and competition rules on transport, agriculture and manufacturing for smaller island economies within the European Union to make up for the disadvantages caused by insularity problems affecting these island states and other islands connected to the European mainland. Maltese MEP Alfred Sant told a Conference on the specific needs of EU islands in EU Policy at the European Parliament in Brussels.
Dr. Sant said cohesion and structural funds should be classified in a different and better way for small island states and island economies. “The EU’s State Aid policy has been inhibiting certain islands, including Malta, from moving forward. “We need to look at state aid from a different perspective of being an island. Under regional, cohesion funds and structural funds, our agriculture, small as it is, has been going down hill … about 50% reduction over the past ten years. The same thing is applied for manufacturing. …and to be quite clear, our output is so small that it is not going to effect the single market, one way or the other.”
Malta is performing very well in economic terms. “But if you analyse from where that is coming from, its very biased towards financial services and gaming services plus tourism. Now why is that a problem? Its a problem because as soon as the EU starts changing its rules on taxation – which is what the EU is going to do – this financial services sector , which has grown so much, might not be in a position to satisfy the changes because of the harmonisation that will be going on in tax policies over the Union.
“Joining the EU meant that Malta had to take on EU policies on manufacturing, industries and competition. Over the last ten years we have seen the manufacturing sector going down by about 30%. So the problem also is that in a small island context, when you move forward you have an unbalancing effect in the sense that you have a concentration in a specific sector which is dangerous.”
Dr. Sant said Gozo has a problem of double insularity. This cannot be tackled in terms of having more or less cohesion or structural funds. Gozo needs a competitive situation to move forward. “Gozitan University students agree that the island is doing relatively well. ‘But we can’t stay in this place they told me.’ There is no future for them as young people to plan a career and have a good life style. So although economically they seem to be doing well …the phenomenon of the population seems to be proceeding. How can you tackle that? Now I agree that with the process of digitalisation some of the effects of insularity can be contained. But we still have to develop a model about that. Beyond trying to get criteria for cohesion or structural funds – extra allocations to what we can get under normal rules – I think we have to widen that and we have to consider how competition rules effect our situation and whether they can be implemented in a different way.”
Dr. Sant said the European Commission is resisting these arguments. “They would not like to discuss this concept because they claim that cohesion and structural funds should be enough to compensate for our disparities. Like for instance on taxation policies … why is it not possible to have specific taxation policies that are different for island regions and states on a differentiated basis?” asked the Maltese MEP.
Other MEPS from Croatia, Sardinia, Sicily and the Greek islands and Ireland also highlighted the effects of insularity on sustainable development in their respective islands.

You may follow the full intevention of Alfred Sant in video below:

MEĦTIEĠA SOLUZZJONIJIET ĠODDA GĦALL-GŻEJJER ŻGĦAR TAL-UE

Alfred Sant waqt Konferenza dwar l-Istati Gżejjer tal-UE

Il-Kummissjoni Ewropea trid issib soluzzjonijiet ġodda għall-politika ta-kompetizzjoni u tal-għajnuna tal-istat fl-oqsma tat-trasport, agrikultura u manifattura biex tagħmel tajjeb għall-iżvantaġġi tal-insularita` tal-ekonomija tal-gżejjer żgħar tal-UE li bl-ebda mod ma jheddu l-integrita` tas-suq komuni. Dan qalu Alfred Sant meta indirizza l-Konferenza dwar l-Istati Gżejjer tal-EU fil-Parlament Ewropew. Dr Sant qal li lil hinn mid-diskussjoni dwar il-fondi ta’ koeżjoni, irridu niddiskutu wkoll kif ir-regoli tal-għajnuna tal-istat u l-politika tal-kompetizzjoni tal-UE u strutturi oħra, jibdew jirriflettu s-sitwazzjoni tal-ekonomiji tal-gżejjer stati u gżejjer tal-UE. Dan għaliex dawn ir-regoli jħallu l-implikazzjonijiet fuq l-andament tal-gżejjer tagħna.
Dr Sant qal li l-ekonomija ta’ Malta sejra tajjeb. “ Imma jekk tanalizza dan it-tkabbir minn fejn hu ġej, tinduna li jserraħ ħafna fuq is-servizzi finanzjarji, is-settur tal-gaming u t-turiżmu. Għaliex din hija problema? Din hija problema għax malli l-UE tibda tbiddel ir-regoli tagħha tat-tassazzjoni – u filfatt l-UE hekk se tagħmel – dan is-settur tas-servizzi finanzjari, li kiber tant, jista’ ma jkunx f’pożizzjoni li jassorbi dawn il-bidliet li ġejjin minħabba l-armonizzazzjoni tat-taxxi madwar l-Ewropa.
Il-politika tal-għajnuna tal-istat, qed ixxekkel lil ċertu gżejjer, fosthom Malta, biex jimxu ’l quddiem. “Irridu nħarsu lejn l-għajnuna tal-istat minn perspettiva ta’ gżira … l-agrikoltura tagħna, peress li żgħira ħafna…ilha sejra lura…naqset b’madwar 50% f’dawn l-aħħar għaxar snin. L-istess ħaġa nistgħu ngħidu għal manifattura….u ħalli nkunu ċari, dak li nipproduċu huwa tant żgħir li żgur mhux se jaffettwa s-suq komuni, la min-naħa u l-anqas minn oħra.”
“Is-sħubija tal-UE għal Malta fissret li kellna nadottaw il-politika tal-UE tal-manifattura, tal-industrija u tal-kompetizzjoni. Dawn l-aħħar għaxar snin rajna s-settur tal-manifattura nieżel, tant li ċkien b’madwar 30%. Fil-kuntest ta’ gżira żgħira, meta timxi ’l quddiem ikollok ukoll effett ta’ żbilanċ fis-sens li jkollok konċentrazzjoni ta’ settur partikolari, u dan joħloq periklu.”
Il-problemi ta’ Għawdex ma nistgħux nindirizzawhom billi jkollna iktar jew inqas fondi strutturali u ta’ koeżjoni, qal Dr Sant. Għawdex irid ikun kompetittiv biex jimxi ’l quddiem. Għawdex sejjer mhux ħażin fit-turiżmu, u fl-ammont ta’ nies li jirtiraw hemmhekk. Imma l-iżbilanċ li jħalli dan kollu fuq il-popolazzjoni huwa kbir. L-Istudenti Universitarji Għawdxin jaqblu li l-gżira sejra tajjeb. “Ma nistgħux nibqgħu hawnhekk qaluli.” Ma hemmx futur għalihom, bħala żgħażagħ li jridu jippjanaw il-karriera tagħhom u jkollhom life style tajba. Għalkemm f’termini ekonomiċi Għawdex jidher sejjer tajjeb…il-fenomenu tat-tluq tal-popolazzjoni żgħażugħa jidher li għadu għaddej. Kif se tkun indirizzata din il-ħaġa? Naqbel li bil-proċess ta’ diġitalizzazzjoni, nistgħu nindirizzaw ftit mill-effetti tal-insularita`. Imma xorta rridu noħolqu mudell għal dan. Irridu nikkunsidraw, lil hinn mill-kriterji tal-fondi strutturali u ta’ koeżjoni, aktar allokazzjonijiet minn dawk li nistgħu nieħdu taħt ir-regoli normali. Irridu nikkunsidraw kif ir-regoli tal-kompetizzjoni qed jaffettwaw is-sitwazzjoni speċjali tagħna u jistgħux ikunu implimentati b’mod differenti.”
Dr Sant qal li l-Kummissjoni Ewropea qed turi reżistenza għal dawn l-argumenti. “Ma jixtiqux jiddiskutu dan il-kunċett għax jgħidu li l-fondi strutturali u ta’ koeżjoni huma biżżejjed biex jikkumpensaw għal dawn id-differenzi. Bħal pereżempju fuq il-politika ta’ tassazzjoni…għaliex ma jistax ikollna politika ta’ tassazzjoni li tkun differenti għar-reġjuni li huma gżejjer u għal dawk li huma stati?” staqsa l-Ewroparlamentari Malti.
Membri Parlamentari oħra mill-gżejjer tal-Kroazja, Sardinja, Sqallija, l-gżejjer Griegi u l-Irlanda wkoll saħqu fuq il-problemi ta’ insularita` li jaffettwaw l-ekonomija u s-soċjeta` fil-gżejjer tagħhom.