Former Prime Minister Alfred Sant told the European Parliament that in a Europe which should stand for the welfare of all citizens, there should be no place for state aid rules that seek fairness for big enterprise, and deny support to small and traditional concerns. State aid procedures employed by the European Commission to vet commercial and economic decisions need to be reappraised drastically.They are increasingly failing to recognize that the single market is a fractured one.

Dr. Sant said there is a refusal to recognize that state entrepreneurship can be a valid tool in peripheral regions by which to promote new economic activity or sustain old and dying ones. ‘All this is unfair and mistaken.’ He stressed that some economic activities of peripheral regions — islands, coastal and mountain areas — need state subsidies to survive, if we want them to survive. He said that relatively marginal activities in peripheral economies which account for a minimal percentage of overall turnover in the single market, should be exempted from state aid criteria when investment and commercial measures are being taken in their favour.

‘But decisions are increasingly relying on one size fits all methods.’ he reiterated. Peripheral regions with limited endowments have been subjected to competition from areas where vastly superior resources prevail. Traditional small scale occupations run by micro enterprises are not allowed protective breathing space.

You can follow Dr. Sant’s intervention on video below:

Maltese Version

‘L-UE GĦANDHA TIBDEL DRASTIKAMENT IR-REGOLI TA’ STATE AID’

Alfred Sant qal lill-Parlament Ewropew li l-Kummissjoni Ewropea għandha tfassal mill-ġdid u b’mod drastiku id-deċiżjonijiet kummerċjali u ekonomiċi dwar l-għajnuna tal-istat. L-UE mhix tagħraf li s-suq magħqud Ewropew (single market) huwa maqsum f’diversi biċċiet. Mhix taċċetta li l-investiment tal-istat jista’ jkun għodda valida f’reġjuni periferali biex tinħoloq attivita’ ekonomika ġdida u jkunu sostnuti attivitajiet ekonomiċi antiki jew dawk li jkunu f’diffikultajiet. Dr. Sant saħaq li l-attivitajiet ekonomiċi f’reġjuni periferali – gżejjer, kosta jew muntanji – jeħtieġu sussidju tal-istat biex jibqgħu joperaw, jekk irridu nsalvawhom.

Dr. Sant qal li l-proċeduri li bihom il-Kummissjoni Ewopea tikkontrolla s-sussidji tal-istat lil kumpanniji kummerċjali ma jistgħux jitħaddmu fi gżejjer żgħar jew reġjuni imbiegħda bl-istess mod kif jitħaddmu f’ekonomiji tal-pajjiżi l-kbar tal-Unjoni Ewropea. Alfred Sant qal li f’Unjoni Ewropea li għandha tiddefendi ċ-ċittadini tagħha, m’għandux ikun hemm regoli li jagħmlu ġustizzja mal-intrapriżi l-kbar u mbagħad jiddiskriminaw mal-intrapriżi żgħar u tradizzjonali.

Dr. Sant qal li d-deċiżjonijiet qed jittieħdu bis-sistema ta’ ‘one size fits all’, fejn politika li tkun taqbel għall-ekonomiji l-kbar trid bilfors tkun addattata mill-gżejjer żgħar tal-UE li joperaw f’ċirkostanzi differenti. Ir-reġjuni periferali qegħdin joperaw f’kompetizzjoni ma’ riżorsi superjuri. Kumpanniji tradizzjonali li joperaw fuq skala żgħira mhux jingħataw in-nifs meħtieġ biex jipproteġu l-operazzjonijiet kummerċjali tagħhom. Alfred Sant qal attivitajiet marġinali li joħolqu investiment u attivita’ kummerċjali f’ekonomiji periferali li jammontaw għal persentaġġ minimu tas-suq wieħed għandhom ikunu eżentati mill-kriterji eżistenti ta’ ‘State Aid’.

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