EU islands and regions should be free from competition rules

Former Prime Minister Alfred Sant said there should be a full and clear exemption from competition rules to EU islands and regions as they apply to state subsidy and support.
Dr Sant said there is no way by which such exemption can affect in any way, the operations of the European single market. To be sure, regularly, scrutiny could be organised to ensure that these arrangements are not being abused in any way. Less that 4% of the European population lives in islands and the EU’s southernmost regions, said Dr Sant when addressing the Conference Which Place-Based Approach to EU Investments? A case study on Islands and Outermost Regions at the European Parliament in Strasbourg.
Dr Sant said that islands and peripheral regions must consistently and strongly advance the case for grants to constitute a major part of the array of regional development instruments applying to them. The policy of 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. It will lead to the provision of less, much less investment funds. Given the circumstances that island and peripheral regions face, grants must indeed continue as a centre piece to compensate for the disadvantages that they need to overcome, especially in the context of an economic and monetary union.
Dr Sant said we need to insist that with all means at its disposal the EU helps to promote digitilisation in all sectors which are relevant to reduce the peripherality of islands and regions. Such support will need to show itself at the level of how competition policy is addressed when dealing with digitialisation projects. It must also show itself at the level of how financing is secured for digitilisation projects that are vital to the long term development of island and peripheral regions. Most of them, in the short to medium term, hold little chance of returns that would be acceptable to financial markets. Grants should therefore be a central mechanism when mobilising digitilisation projects.
“The fundamental effort to be carried out needs to be political. We need to convince all interested decision makers in the EU that islands and peripheral regions have got to be given a fair deal – one that is consonant with their circumstances, unless we are quite prepared to let them become deserted backways.”
Dr Sant said the need to inject productive capital in such regions is widely acknowledged, in order to improve their living standards and bring them closer to those of the centre. Economic and social convergence between all zones within the Union is a vital target that all agree with.
Dr Sant said there is a clear probability that the investment reinforcement will happen with a greater roll in areas which have good economic endowments, a large population and proximity to markets.
“All this, islands and peripheral regions lack. So, the likelihood has increased that in real terms, they are and will be slipping down, in the implementation list of new investment projects. Reading through the schedule of investments that EFSI has been launching seems to confirm this fear.”
Dr Sant said it is only through political action , intended to stimulate political responses that this trend can be reversed. The case must be made through and through, by all representatives of islands and peripheral regions, whether of right centre and left, that the regions they stand for merit special treatment.
“We need a further attempt by which to downscale the way that competition policy gets applied to island and peripheral regions. There should be a stop to one size fits all policies in these regions, even if they get shrouded in methods that seek to adapt bureaucratic procedures as they apply on a continental basis to peripheral and insular situations.” remarked the Maltese MEP.

Maltese Version – GŻEJJER U REĠJUNI TAL-UE GĦANDHOM JIĠU EŻENTATI MIR-REGOLI TAL-KOMPETIZZJONI

Il-gżejjer u reġjuni tal-Unjoni Ewropea għandhom ikunu eżentati kompletament mir-regoli tal-kompetizzjoni tal-UE meta dawn japplikaw għal sussidji u għajnuniet tal-istat. Dan qalu l-Kap tad-Delegazzjoni Laburista fil-Parlament Ewropew meta indirizza Konferenza dwar il-gżejjer u reġjuni tal-UE fil-Parlament Ewropew fi Strasburgu. Dr Sant qal li din l-eżenzjoni ma taffettwa bl-ebda mod l-operazzjonijiet tas-suq intern Ewropew u jista’ jsir skrutinju regolari li jiżgura li ma jsirux abbużi b’dawn l-arranġamenti. Anqas minn 4% tal-popolazzjoni Ewropea tgħix fi gżejjer jew reġjuni fis-sud fl-Ewropa.
L-Ewroparlamentari Malti qal li l-gżejjer u r-reġjuni fil-periferija għandhom jinsistu li l-‘grants’ ikunu parti mill-istrumenti għall-iżvilupp reġjonali. Minħabba ċ-ċirkostanzi partikolari tal-gżejjer u r-reġjuni fil-periferija, l-għajnuna tal-istat għandha tagħmel tajjeb għall-iżvantaġġi li jkollhom jegħlbu dawn ir-reġjuni, speċjalment f’kuntest ta’ unjoni ekonomika u monetarja.
“L-Unjoni Ewropea għandha tgħin fid-diġitalizzazzjoni tas-setturi kollha biex tingħeleb il-periferalita` tal-gżejjer u r-reġjuni. Dan l-appoġġ irid jidher fil-mod kif il-politika tal-kompetizzjoni tkun indirizzata fil-proġetti diġitali. Trid tidher ukoll fil-mod kif ikun żgurat il-finanzjament għal proġetti diġitali li jkunu vitali għall-iżvilupp fit-tul tal-gżejjer u r-reġjuni fil-periferija. Ħafna minn dawn il-proġetti, fi żmien qasir jew medju, jkollhom ftit ċans li jrendu biżżejjed fis-swieq finanzjarji. Għalhekk jeħtieġ li l-għajnuna tal-istat tkun mekkaniżmu ċentrali fil-proġetti diġitali.”
Dr Sant qal li jeħtieġ sforzi politiċi biex nikkonvinċu lil dawk li jieħdu d-deċiżjonijiet fl-UE, li l-gżejjer u r-reġjuni fil-periferija għandhom jingħataw ftehim ġust – wieħed li jirrifletti l-bżonnijiet taċ-ċirkostanzi tagħhom, sakemm ma aħniex lesti li nħalluhom jaqgħu lura u jintelqu. Hemm bżonn ta’ kapital produttiv fil-gżejjer u fil-periferiji biex jitjieb il-livell ta’ għixien u jsir simili ta’ dak tar-reġjuni taċ-ċentru.
“Konverġenza ekonomika u soċjali fiż-żoni kollha tal-UE hija mira importanti ħafna li kulħadd jaqbel magħha. Probabbilment li l-investiment jitlaq aktar b’saħħtu f’żoni ekonomikament b’saħħithom, b’popolazzjonijiet akbar u bis-swieq fil-viċin. Il-gżejjer u r-reġjuni fil-periferija ma għandhomx dan il-lussu. Għalhekk, f’termini reali aktar hemm iċ-ċans li jaqgħu lura, fl-implimentazzjoni tal-lista tal-proġetti ġodda ta’ investiment. Ħarsa lejn l-investimenti skedati tikkonferma dan kollu. Irridu nnaqqsu l-mod kif il-politika ta’ kompetizzjoni tkun applikata fir-reġjuni tal-periferija u l-gżejjer. Jeħtieġ tieqaf il-politika ta’ ‘one-size-fits-all’ f’dawn ir-reġjuni.”
Dr Sant qal li huwa biss b’mod politiku, maħsub apposta, li dan kollu ma jippersistix aktar. Ir-rappreżentanti tal-gżejjer u tar-reġjuni kollha tal-periferija, taċ-ċentru xellug u tal-lemin għandhom jagħmlu dan l-argument il-ħin kollu, għandhom jisħqu l-istess ħaġa – li r-reġjuni li jirrappreżentaw jixirqilhom trattament speċjali, saħaq l-MPE Malti.