Category: Archive – 2009

The new regulation provides for a further reduction in call charges and an extension of pricing limits to cover SMS and data services. The new rules will ensure that the price paid by users of mobile communication networks for community-wide roaming services is not unjustifiably higher than the price paid for making or receiving a call, sending and receiving an SMS message and transferring data in their country of origin.

The regulation lays down new measures to improve the transparency of retail prices for data roaming services, and to provide roaming customers with the tools they need to monitor and control their expenditure on these services.

The cost of mobile roaming calls: currently at EUR 0.46 for calls made and EUR 0.22 for calls received abroad, the caps will go down to EUR 0.43 for calls made and EUR 0.19 for calls received abroad on 1 July 2009, to EUR 0.39 and EUR 0.15 on 1 July 2010 and to EUR 0.35 and EUR 0.11 by 1 July 2011 (excluding VAT).

The new roaming rules introduce an SMS price cap for sending a text message while abroad at EUR 0.11 (excluding VAT). It also reduces data roaming charges by introducing a wholesale cap of EUR 1 per megabyte download as from 1 July 2009, which will fall to EUR 0.80 in 2010 and to EUR 0.50 in 2011. In addition, the principle of per second billing is introduced after first 30 seconds for calls made and from the first second for calls received while abroad.

Source: MEUSAC Sectoral Committee Update

The Economic and Financial Affairs Council of 9th June reached a political agreement on a directive  tightening the rules for exemption from VAT on importation that is currently subject to abuse through fraud. This directive is one of the 2 measures of the action plan to better combat VAT fraud, adopted by the Commission in December 2008.

Currently the importation of goods is exempt from value added tax (VAT) if followed by a supply or transfer of those goods to a taxable person in another Member State. The conditions under which that exemption is granted are laid down by Member States. Experience, however, shows that divergences in application are exploited by traders to avoid payment of Vat on goods imported under those circumstances. n order to prevent that exploitation it is necessary to specify, for particular transactions at community level a set of minimum conditions under which this exemption applies.

Since, for those reasons, the objectives of the proposed action with a view to address the problem of VAT evasion, cannot be sufficiently achieved by Member States themselves and can therefore be better achieved at Community level, the Community may adapt in accordance with the principle of subsidiarity.

GRTU is currently being consulted by the Ministry for Finance the Economy and Investment on this directive. GRTU has a summary document on what the changes would actually consist of. This is obtainable from Abigail Mamo on 21232881/3 or .

The new regulation provides for a further reduction in call charges and an extension of pricing limits to cover SMS and data services. The new rules will ensure that the price paid by users of mobile communication networks for community-wide roaming services is not unjustifiably higher than the price paid for making or receiving a call, sending and receiving an SMS message and transferring data in their country of origin.

The regulation lays down new measures to improve the transparency of retail prices for data roaming services, and to provide roaming customers with the tools they need to monitor and control their expenditure on these services.

The cost of mobile roaming calls: currently at EUR 0.46 for calls made and EUR 0.22 for calls received abroad, the caps will go down to EUR 0.43 for calls made and EUR 0.19 for calls received abroad on 1 July 2009, to EUR 0.39 and EUR 0.15 on 1 July 2010 and to EUR 0.35 and EUR 0.11 by 1 July 2011 (excluding VAT).

The new roaming rules introduce an SMS price cap for sending a text message while abroad at EUR 0.11 (excluding VAT). It also reduces data roaming charges by introducing a wholesale cap of EUR 1 per megabyte download as from 1 July 2009, which will fall to EUR 0.80 in 2010 and to EUR 0.50 in 2011. In addition, the principle of per second billing is introduced after first 30 seconds for calls made and from the first second for calls received while abroad.

Source: MEUSAC Sectoral Committee Update

Vince Farrugia, GRTU Director General, held a meeting this week for representatives of the Ministry of Resources and Rural Affairs, Police Officers responsible for Valletta, representatives from ADT and the office of the Prime Minister as well as representatives from the Valletta Local Council, so that together with GRTU they would draft a plan to ensure that the situation in the centre of Valletta will not deteriorate any further. Unfortunately, the situation is deteriorating at quite a fast rate, despite the Government's Investments in relation to the pedestrianisation as well as the restoration of a number of historical sites.

Accessibility remains the crucial problem for those wanting to make use of the vast facilities offered in Valletta. The wide range of shops, shopping arcades, coffee shops, restaurants and others offering a variety of services not only have made a significant investment but also employ a large number of workers. These establishments can no longer suffer the damage caused by the fact that people in general are discouraged from frequenting Valletta's commercial center. The owners' expenses to keep such establishments are large and they are facing strong competition from other commercial centres spread over the Island. Unless the accessibility problem is solved, people will keep on avoiding going to Valletta when they can get the same services from other places.

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This problem was even made worse with the lack of wise planning in relation to the works on the square just opposite the parliament. This issue will not be solved by a reform in the public transport services or enhancement of the park and ride scheme. The issue is the lack of parking slots in the area around Valletta's Commercial Centre for those wanting to make use of the services offered by the establishments in Valletta.

GRTU is disappointed and crossed by the various manoeuvres and intrigues, which created a situation whereby those who try to get to Valletta by car get harshly punished. Earlier on the problem was felt in the mornings till around five in the evening. In the mornings, the parking spaces near the center are reserved to the privileged groups, members of the parliament, other people having a special permission from police on duty as well as hawkers who not only park for free but also determine where to park. This situation led a number of costumers to enter Valletta after five in the evening to avoid the parking penalty as well as the wardens wandering around the city.

The stark truth unfortunately is that those entering Valletta as customers, do not vote in Valletta's Local Councils and so no one really cares for them even though they are pillars for the Valletta establishments and thus their employees. Authorities feel that to shop or make use of the services offered in Valletta, costumers should be punished by a number of extra impositions.  Privileges are merely reserved for the residents of Valletta who have their green boxes reserved 24/7, governments bureaucrats and others with their yellow boxes, other residents having blue box, reserved after 7pm, members of the parliament (not to be discussed) and hawkers' vans (free of charge and wherever they want).

The Government recently has also abandoned the car park project for the square opposite the Parliament, which was planned to become a seven-storey car park but which turned into naught. Government though continued on the pedestrianisation works and the removal of further parking slots for general consumers, without thinking of alternative parking spaces. This is real foolish planning with the disastrous result of shops and restaurants in the centre of Valletta being destroyed.

Following the meeting, the Director General presented a number of proposals and suggesting on behalf of establishment owners on how things could be amended. What is certain is that the situation will not get better unless something is done about those who are privileged and when it comes to parking spaces they pretend they have an uncompromising right and secondly if the Government would not mind go against all odds to help the businesses in Valletta from dying a natural death after six in the evening.

If the Government remains stubborn in this way of proceeding with his plans, which plans were never approved by the community of businesses in Valletta, such businesses have a very indecisive and unclear future.  The result would be that more and more offices would move out of Valletta and more business will be opening anywhere else on the island, leading Valletta to become primary a museum for Cruise Liner Tourists who visit Valletta till five in the evening; of course if tour operators offer them this tour.

From a survey carried out by GRTU last week amongst business owners it clearly transpired that the refurbishment of St George's Square and further restrictions to parking to protect the members of parliament without any alternative parking spaces created a new problem for the business community in Valletta. Unless immediate action is taken, the restaurants, shops and other establishment may as well not open in the evenings during the week. The problem is common also for lunch time, whereby those who would like to have lunches in Valletta are finding the parking spaces vacant and reserved exclusively for the members of the parliament as from one in the afternoon.

It is already visible that Valletta is dying out, and the situation is getting worse everyday. Government needs to take action and realize the reality of the situation. Whoever says that Valletta is regaining back life with what is being done is dreaming and is not actually visiting Valletta. The authorities has to take into account the experiences of those who live and make their living in Valletta and not the experiences of those who work behind desks till five in the evening and leave.

GRTU is awaiting for an immediate reaction and is offering all its services and support to owners to find practical solutions

The ALL HANDICRAFTS EXPORTERS ASSOCIATION, NEW DELHI, INDIA will be participating in the International Fair of Malta 2009 being held between the 25th of June and the 5th of July at the Malta Fairs and Conventions Centre, Ta` Qali.

They would like to exchange possible business opportunities with you as our member and explore the possibilities of a long-term business relationship.

The business categories covered are:

Construction and Real Estate, Agriculture, Apparel and Fashion,  Jewellery and Gem Stones, Security and Protection, Food and Beverage, Textiles and Leather Products, Gifts and Crafts, Telecommunication, Transportation, Health and Beauty, Industrial Supplies, Machineries, Office Supplies, Minerals and Metals.

Please contact Abigail Mamo on 21 232 881/3 or , if you are interested to meet members of this delegation by specifying which area is of your interest.

A reflection process launched by the European Commission, involving stakeholders and transport experts, identified 6 main trends and challenges that will shape the future of transport policy over the coming decades – aging, migration and internal mobility, environmental challenges, the availability of energy resources, urbanisation and globalisation.  This demonstrates the need to focus future European transport policy on the pursuit of an integrated, technology-based and user-friendly transport system. With today's adoption of the Communication on the future of transport, the European Commission wants to stimulate further debate that aims at identifying concrete policy proposals for its next Transport White Paper scheduled for 2010.

"Transport has been and will remain an essential component of our daily lives. It has contributed substantially to the development, integration and growth of the internal market with tangible benefits to the European economy. European transport policy has also raised standards for the sector such as improved working conditions, higher safety and security conditions as well as the strengthening of passenger rights. I believe that the time is ripe to throw this policy forward. Firstly by further integrating different transport modes, by putting the EU at the forefront transport services and technologies and thirdly shaping this future transport policy on the needs and rights of both transport users and workers," said Vice-President Antonio Tajani, responsible for transport.

The Commission issued in 2001 a White Paper setting an agenda for transport policy throughout 2010 which was updated in 2006. The Communication adopted today is a follow-up to the White Paper and defines a vision for the future of transport and mobility until 2020, taking into account scenarios that may possibly arise decades beyond this date.

Transport policies for the next ten years must be based on a wide reflection on the future of the transport system. The Commission commissioned external studies on the evaluation of past policies and future scenarios and consulted with experts and stakeholders through specialised Focus Groups and through a High Level Stakeholders' Conference which took place on 9-10 March 2009.

The main conclusions of the Communication are:

European transport policy has helped to provide an efficient mobility system to EU people and businesses. It now has the task of ensuring that this mobility can be sustained in the future.

Environmental sustainability, ageing, migration, fossil fuel scarcity, urbanisation, and globalisation are key tendencies in our society and will pose challenges to our system of mobility.

Accelerating the introduction of innovative technologies and the full integration of the different transport modes is crucial to meeting those challenges. This in a context in which transport users and employees, with their needs and rights, are always kept at the centre of policy making.

It is important to advance the external projection of European Transport Policy, as a way to ensure further integration with the neighbouring countries and the promotion of Europe's economic and environmental interests in the global context.

The Communication does not include a detailed programme of policy measures, but rather tries to identify a strategic vision for the future of transport. The vision and ideas it puts forward are meant to stimulate further debate aimed at identifying possible policy options. Next year this work is expected to give rise to a formulation of concrete policy proposals and to the subsequent adoption of a White Paper.

The Commission encourages all interested party to contribute to this exercise by submitting their views on the future of transport and on possible policy options to the mailbox: by 30 September 2009.

Policies that aim to master the current economic and financial crises and to support a recovery of Europe's economy must be placed at the centre stage of the of the Cabinet of Ministers.

The strengthening of the SME sector is key in the economic recovery. Work has already started however implementation is slow. With the European Small Business Act (SBA), launched during the French Presidency, the European Institutions have finally recognised Small and Medium Businesses` central role. Now we have to start thinking of effects, the SBA will only have positive effects if the commitments made with the SBA are fulfilled at European, national and local level. The Maltese Government has to grab the chance now that the policy is still fresh to focus on its implementation – but to do so, it will have to tackle the real needs of the Crafts and SME sector.

There are four pillars on which the Maltese legislature needs to focus on:

1. Help SMEs to Survive the credit crunch and provide support for an economic recovery

The current and ongoing financial turmoil has significant negative effects on access to finance for SMEs with credits and loans becoming more difficult to obtain. A decrease in economic activity due to lack of finance must be avoided at all costs. The Maltese Government must do its share in re-stabilising financial markets by:

• Ensuring that any public support given to banks as well as interest rate cuts are passed on to costumers and not used in favour of bank shareholders;
• Ensuring that the financial markets are better targeted to real economy than to financial speculations;
• Reforming the global regulatory system for the financial market (including rating agencies) to avoid the repetition of such crises in future (increase of transparency, no off-balance operations);
• Ensuring sufficient refinancing of SME loans (EIB, national intermediaries, guarantee schemes);
• Using any possibility to support company finance directly by Central Banks instruments;

The recovery must be supported by policies which aim to bring back confidence to all economic actors and to stabilise economic demand, without endangering fiscal stability in the long run. Therefore, the Cabinet of Ministers must contribute to a policy mix, which:

• Uses the extended possibilities offered by the new State aid regulations to support SMEs, especially with public guarantee schemes, including guarantees for working capital;
• Uses the possibilities provided by the Stability and Growth Pact to increase public investments without endangering the long term targets for budgetary consolidation;
• Stimulates additional private demand by setting the right incentives, i.e. for energy saving investments in private houses;
• Stimulates public and private demand by investments in infrastructure also via Public-Private Partnerships;

1. Support SMEs in their efforts to maintain as many people as possible at work

Smaller businesses have been so far more reluctant to lay off workers compared to larger enterprises. However, small enterprises have specific problems as regards labour market regulations, access to social benefit systems and access to training, which they cannot solve alone. Therefore, Government must support employment in SMEs by:

• Taking appropriate measures within the ESF and EGF at all levels so that SMEs can effectively benefit from adapted short time working arrangements, combined with effective retraining and re-skilling measures, for maintaining as many as possible people at work and facilitating transitions of persons becoming unemployed during the current crisis;
• Ensuring equal access to labour market instruments, such as short time working arrangements or "part time work" or other types of partial unemployment, like large enterprises have;
• Avoiding distortion of competition for SMEs coming from subsidised employment in the public or semi public sector;
• Reducing non-wage labour costs, especially at the lower end of the labour market;
• Opening all social protection and benefit systems to all employees, including those from small businesses;
• Promoting the occupational and geographical mobility of workers and notably the mobility of young people in vocational education and training in alternating training schemes such as apprentices;
• Enhancing partnerships between education and training institutions and social partners, in particular employers organisations, in the context of lifelong learning to guarantee a better employability of workers;

1. Provide SMEs with space to breathe and promote entrepreneurship

The European Small Business Act provides the principles for an effective policy in line with the needs of small enterprises and an encompassing catalogue of concrete measures to be taken at all levels to improve the business environment and to give SMEs enough space to breathe.

A key contribution for achieving an SME-friendly environment is a change in the perception of the role of entrepreneurs and risk-taking: entrepreneurship and the associated willingness to take risk should be applauded by political leaders and the media, and supported by administrations. This means at least respecting the voluntary nature of Corporate Social Responsibility for instance. Therefore, the Cabinet of Ministers must act to fulfil the commitments made in the framework of the Small Business Act and to implement the announced principles and actions – the sooner, the better:

• Legislation and programme planning at all levels must respect the "Think Small First" principle if they have any effect on small enterprises. This means that rules must respect the majority of those who will use them. This includes independent, specific and rigorous impact assessments for small enterprises, systematic consultation of representative Small and Medium associations for at least 12 weeks, the proportionality principle and the "only once" principle.
• The policy principles of the SBA should be put into practice by an inter-institutional agreement between the European Parliament, the European Commission and the Council. The European institutions will not be credible towards Member States unless they start committing themselves to the SBA principles. This is something Government should emphasise on and make its voice heard.
• Business transfers, especially during the crisis, must be made easier and close downs has to be avoided by new financial products (i.e. mezzanine instruments), consultative services and more favourable tax provisions.
• Internal market barriers resulting from 27 different tax systems, which are prohibitive for small enterprises, must be removed by a common tax base or by mutual recognition of the home tax system.
• The existing rules on late payments must become more effective and include also business-to-consumer relations, fixing a maximum period for public authorities and include measures that avoid that SMEs are pre-financing the big enterprises, in order to avoid a deterioration of the financial situation of SMEs

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1. Protect SMEs against unnecessary burdens

The programme of 25% until 2012 will only be successful if all European Institutions and the Member States increase their implementation efforts and if other burdens will not be created in the meantime. The actual standards in the fields of environment, health and safety, consumer protection and others create too often high administrative burdens and compliance costs, especially for smaller companies.

Therefore, the proportionality principle should be applied as a basic rule whenever SME policy is concerned. This principle means that SMEs should be treated differently according to the level of dangerousness and risks they may impact.

The needs and particularities of SMEs have to be taken compulsorily into account in all relevant policies, programmes and negotiations at EU and national level. Furthermore, the current economic crisis must lead to a review of all pending legislation that may put unnecessary burdens on small enterprises. Policy projects that were started in good economic times must therefore be re-assessed and checked against the new reality. Therefore, the Prime Minister must push these principles among the Cabinet of Ministers to review and reassess the following pending pieces of legislation, which may be especially burdensome for SMEs:

• The new proposal for a Directive on Consumer Rights: calling for more balanced regulations towards SMEs within the new directive;
• The recast of the Eco-design Directive so that it only applies to products made in series;
• The recast of the Waste Electrical and Electronic Equipment Directive (WEEE);
• The new rules on Green Public Procurement (GPP) to avoid complex and costly audit systems or certification measures;
• The recast of the Energy Performance of Buildings Directive;
• The Renewable Energies Directive without additional rules on professional qualifications;
• The Construction Products Regulation with simplified procedures for small and non-series products;
• The new proposal for a directive on non discrimination outside the labour market, which is better dealt with through non-binding and supportive measures;
• The revision of the Maternity Leave Directive: I do not see any need to increase the duration of maternity leave and disagree with the increase of payment allowances, taking into account the changes made by the European Social Partners in the Parental Leave directive;
• The revision of the 4th and 7th Company Law Directives.
• The revision of the Euro-vignette Directive on heavy goods vehicles, which might trigger a further increase in transport costs without achieving the desired environmental improvements.

In the past, the need for peace brought the peoples of Europe together. European integration is the greatest achievement in the history of our continent. It not only brought peace, freedom and stability, but also a period of economic security. Malta has no longer reason to be constantly preoccupied of security issues and foreign threats; security is a concept which today has evolved. The current crisis on the financial markets and a severe worldwide recession, the fight against climate change, our aging societies, as well as terrorism and organized crime, nowadays require both close cooperation on European level and a strong Europe in the world.

Europe together with its global partners should be in a position to pursue European interests in the world, take responsibilities and embrace the changes of the 21st century. The Maltese should in turn look at the EU as an amplifier of their interests at the global level.

The creation of work and new jobs, with the drive of Prime Minister Lawrence Gonzi, is within the Nationalist team placed as the core priority. Only if we manage to reach a high level of employment across the EU amongst our citizens and bring more orders to our business man will we be able to safeguard a good standard of living for everyone.

Throughout the history the EPP has been the European political family. This role is being amply fulfilled locally by the Nationalist Party as the only National Party with a clear vision for Europe. We know what we want and we know our limits. We believe the state should not be responsible for every question in people's lives, and the EU should not deal with issues that can be better and more efficiently dealt with on a national, regional or local level. We stand for a European Union that sets clear priorities – but stays out of issues that should be handled on a lower level, closer to the citizens themselves.

MEPs are an important instrument we need to have trust in and use wisely. We cannot send people we cannot trust and who do not have any experience or drive to work with the Government Malta chose. I have a strategy of what I want to do, for you, as your MEP.

1. Strengthen our families by ensuring high quality work that yields more and strengthens the income of our families

Work Life Balance. Persons are not merely individuals, but human beings belonging to families and communities. For parents, especially women, finding a balance between high qualification, success on the labour market and their wish to raise a family is difficult to achieve. Family friendly policies that improve flexibility for working parents have to be introduced. Our educational systems and work patterns have to be more flexible in order to support them.

Support must be given towards more flexibility with respect to working time, new ways in the carrier planning of workers, especially of female workers, and guarantee sufficient child care facilities within the working place.

Education. Higher levels of education are associated with significantly higher employment rates and wages. Education is the primary investment in tomorrow's future, particularly in the case of Malta whereby the human resource is our principal resource. We need to facilitate training and learning of computer knowledge for people of all ages. Life-long learning is especially important in order to cope with the challenges posed by technological change.

Health care, social security and pensions. The social and economic implications of population aging are manifold and its impact on the social security systems in the EU cannot be underestimated. The interests of the aging population have nonetheless to be safeguarded.

Flexible retirement must be encouraged and those who are still fit and willing to work should be able to do so. Public employment services should also assist those elderly workers who want to re-enter the workplace. As far as health policies are concerned, a wider ‘healthy aging' strategy which focuses on promoting healthier life styles through life should be developed.

2. Using all opportunities to bring more investment, orders, tourists and work to safeguard Small and Medium Sized Enterprises, the backbone of our economy

Business and SMEs need a strong voice not only in Malta but also in Europe. It is important for one of Malta's MEPs to be able to play a leading role in defending SMEs and to be well versed in economic policy and in how the EU can help small economies.

With the European Small Business Act (SBA), the European Institutions have finally recognised the dominant role crafts and SMEs play in Europe's Economy. The SBA must be seen as a major step forward and it is now on the next European Parliament and Commission, the incoming Presidencies as well as the national governments to demonstrate that they have understood what SMEs in Europe really need.

Crafts and SMEs can only use their full potential for growth and job creation if unnecessary administrative burdens are avoided and the remaining barriers to markets are removed. Better Regulation requires a cultural shift, a change of mindset amongst civil servants, public authorities and the legislature in general. SMEs need concrete measures to be taken at all levels to improve the business environment and to give SMEs enough space to breath.

Legislation and programme planning at all levels must respect the ‘Think Small First' principle if they have any effect on small enterprises. Rules must respect the majority of those who will use them. This includes independent impact assessments, systematic consultation of representative bodies, the ‘only once' principle and the introduction of common commencement dates. The needs and particularities of SMEs have to be taken compulsorily into account in all relevant polices and legislation.

3. Working for a better environment so that the citizen can live a better and healthier life and gain from the opportunities it has to offer

The current financial and economic crisis should not be taken as an excuse to do nothing but as a wake-up call to modernize our economies and create new, sustainable jobs. Action on climate change will create significant business opportunities, as new markets are created in low-carbon energy technologies and other low-carbon goods and services. Business and Industry must no longer be regarded as the problem but the solution.

While providing a level playing field for companies operating in the single market, one has to recognize that EU Environmental Policy is not only beneficial to business but also on a wider scale and may include improved human health, greater biodiversity and so on. The point is that a better environment is good, even though this comes at a cost. In a small country like Malta improving our environment is less of a question than in most other areas of the world. The place we work and we live in are the same, there is no distinction, an environmental problem will hit all of us and not an area. This is a very serious issue for us, a challenge we confront daily.

I believe that taxation policy can be effective in changing attitudes, influencing behaviour and shaping expenditure decisions. However, climate change must not be a cover to generate more revenue and increase the tax burden. It must be part of a re-structuring of the taxation system which re-balances taxes to ensure the polluter pays whilst rewarding those who make changes that protect our environment.

4. Sounding our priorities outside our shores, our problem is Europe's problem

I believe that while respecting traditions and religious beliefs of ethnic minorities, we should nevertheless be "intolerant of intolerance" of our own value system and beliefs. We have a right to be proud of them and to have them respected.

The pressure of illegal immigration on Member States in the Mediterranean such as Malta has reached an unprecedented high, posing a treat to national security and standard of living. Uncontrolled illegal immigration brings about tensions in the host country and inevitably leaves illegal immigrants in difficulties, pushing them into organised crime and human trafficking.

Combating illegal immigration and preventing human drama should be understood as key elements of a European response. Fighting illegal immigration at the EU-level must start from the needs, the capacity and some priorities set up by each Member States. Whenever it is possible, the Member States shall negotiate with the countries of origin. The protection of the coasts of the EU is also vital since the majority of the illegal immigrants are entering the EU boarders through sea. National agencies responsible for home affairs and security will require better funding and coordination at EU level.

The current economic slowdown needs specific policy actions to alleviate and support SMEs, for them to be able to master the crisis and to fully use their potential for growth, job creation and innovation. The action programme I have caused GRTU, Malta's Chamber of SMEs, to adopt is supported by other national associations in the EU representing small and medium enterprises and craft industries. My advice to SMEs is to judge EU candidates on the basis of how versed they are on these issues and how supportive they are in their endevours to see these issues resolved.

There is no doubt that the last European Parliament has demonstrated a determined effort to support a successful SME policy. Significant progress and improvements in support of SMEs` needs have been registered.

The compromise on the Services Directive and the Recognition of Qualification requirements, the reform of the Stability and Growth Pact, progress on the implementation of the ‘Think Small First' principles, an SME – friendly implementation of Basel II, the enhanced participation of SMEs in standardization and a common understanding about labour market reforms (flexicurity principles) are the most important achievements. These issues all count on the positive side of the scoreboard for the outgoing EU Parliament.

I personally feel satisfied that through my participation as Director General of GRTU in many dialogue and consultation meetings and workshops, I had the opportunity to act on behalf of Maltese SMEs to cause progress on  these important issues. This is one tremendous opportunity, opened to use by EU Membership. We can now, together with our colleagues from other EU Member States be influential to cause change where it directly affects SMEs.

On the more negative side, Europe failed to find solutions for the European patent and for working time. The EP has also failed to remove tax barriers within the Internal Market and to find adequate solutions for reduced VAT rates. However the scoreboard of the outgoing European Parliament gives overall a positive result.

Still, SMEs representatives cannot emphasise sufficiently that the progress made during the last years will not be enough to allow SMEs in Member States to meet successfully the negative impact of the current economic crisis affecting most EU states. That is why it is so essential that all 27 Member States send as their representatives in the new Europe Parliament MEPs that are fully versed on SME issues and capable of presenting at EP Level arguments in favour of SME policies in an effective forceful and convincing manner. All institutions at European, national and local level must do their utmost to restabilise the financial markets and to support economic growth.

The question of what Europe's economy must do to overcome the financial turmoil and to ensure a recovery of Europe's economy must be at the centre of the European Parliamentary Elections campaign. That is why I am satisfied that the PN in Malta has adopted work as the main theme of the PN Campaign. The safeguarding of jobs, innovation, job creation and the recovery of Europe's economy will not only keep busy the incoming Presidency of the EU but also the new European Parliament. New MEPs must be prepared, qualified and articulate on economic, job creation and investment issues.

The Economic Recovery Plan released by the European Commission is a positive step, but in SME eyes it fails short on some important aspects. For instance, the Small Business Act is mentioned half-heartedly throughout the text. If it is meant to be a serious contribution to economic recovery, the Rescue Plan must include an action plan on the implementation of the Small Business Act. In Malta I wish to see a greater commitment from Government on the implementation of the Small Business Act.

The new European Parliament needs to face important issues facing SMEs today. Most important perhaps are the following:

• Help for SMEs to survive the credit crunch. This is now a prime issue even in small states like Malta. In the absence of immediate action by all authorities at European and National levels, many SME's will not be able to survive as access to finance to help them bridge the gap between recession and recovery is becoming increasingly restricted. In Malta this is today a menace growing by the day.
• SMEs need more support for an economic recovery. Selected action is being taken but it is reaching only those firms in dire need and with the greatest growth potential. The action programme must be more wide spread and it must reach the smaller firms too.
• SMEs must be provided with more space to breath. Over the last years too many restrictions, bureaucracy and additional Government induced burdens have been imposed on SMEs. Small businesses found it hard enough to cope when the going was right. Under current economic conditions most SMEs simply cannot cope. Each time I meet the Prime Minister the basic theme of discussion is common: Force your bureaucrats to give SMEs space to breathe. I honestly despair sometimes seeing how stupidly cruel some bureaucrats are in their zeal to cause small business owners despair.

• The new EU Parliament must ensure that EU governments must protect SMEs against unnecessary burdens. This requires a complete re-education of the whole apparatus of government. "Think small first", reduction of administrative burdens, simplification. These are all slogans for many people in authority. On a daily basis they carry on as if the European Parliament has never approved these policies.

• Finally and most importantly the new European Parliament should strive to push forward policies to strengthen competitiveness at all levels and foster SMEs cross border activities. There's a market of 500 million people. Most SMEs are hardly benefiting from this tremendous successful achievement of EU strategists. Here in Malta we had a fantastic opportunity to grow at levels never recorded before if only we learn how to penetrate this exceptional market.

As an MEP I believe I can master all my expertise experience and qualities to endeavor to push forward these important themes. It is extremely important for Maltese enterprises to look forward with confidence. We need to strive ahead at National level to continue and cause all authorities to be more SME friendly. But it is now essential that the voice of SMEs is loud, clear and persuasive at European Parliament level too. The Lisbon Treaty gives the EU greatly enhanced legislative powers on all economic and social policy matters. We must have in the EU a strong voice to represent us all.

Celebrating Malta's fifth anniversary as an EU Member state under the dark clouds of an economic downturn is quite unfortunate. The last five years have served us to bring forward a new generation of young Maltese, qualified in all EU matters and who's tremendous task has been to ensure that our small country makes the most of our EU membership. Only these know how difficult it is and how far we have progressed in such a relatively short period of five years. We are still climbing the stiff learning curve, but I believe that Lawrence Gonzi in Malta and Richard Cachia Caruana in Brussels have reason to feel proud on May 1, 2009. It's a job well done.

Brussels has a high opinion of the quality of our people and the seriousness of our endeavors. I honestly feel proud that I am contesting for a seat in the European Parliament. I believe that my experience at both the local and EU level should serve me well in being a very effective MEP. Experience, in an EU context, counts.  The work our people have done in Brussels, to give our country such a good start, now needs to be strengthened. So much work has been done that now we really deserve the right returns to our efforts. It is up to us now to choose people that represent us who can really make the difference. It is up to us to have the right policies and the right people in the right places.

It cannot be that as participants in an internal market of 500 million we cannot attract more investments, more orders for our enterprises, more work for our people, more tourists, more financial institutions and, above all, we cannot make Smart City the success story we all wish it to be.

Investment promotion, business development, procurement of orders and work, this is all home ground to me. I feel I can turn an experience in the European Parliament into more work for the Maltese. This should be our main task in the five years ahead of us. But first we must all put our heads together to mitigate for the economic downturn that now besets us.

The economic statistics at hand at the moment are worrying. The situation could have been much worse, as our professors of doom had predicted, if it were not for two important facts: the much maligned economic restructuring of industry and commerce has after all worked far beyond what was assessed and, at least up to now, the economy has proved that the predictions of our econometricians are not correct. Secondly our economic managers are responding much better to the crisis than Joseph Muscat thinks and believes.

Given that our exports over the last months have dropped by 20%, in line with what has been happening in international trade, should the predictions have materialized we should have lost 15,000 jobs already. The truth is however that over a 12 month period we have lost 900 jobs. The job situation is now more or less at a plateau level and we pray that it will hold as things may get worse before they get better.

I believe that the top level Task Force lead by Lawrence Gonzi himself, which is working hard to identify the firms and the problems that beset them in an effort to mitigate for the economic downturn with solutions that should, if the recession abroad does not last too long, bridge our little economy from here till the next push forward. What these people want however are solutions that are properly costed and immediately implementable with maximum effect in the shortest time-span possible. Mere talk is for yesterdays men.

The problem is we all want to cut public expenditure, but when it comes to it no one wants to say what and where. Who for instance is coming forward to say that government should not give the income tax relief, not spend on a new hospital, not sustain pensions, not build new roads or spend less on saving our environment or spend less on education, on ICT and localities? 

Everyone sermonizes about the budget deficit but when it comes to raising new taxes or cutting on expenditures everyone pulls back.

Most Euro Area Member States recorded negative growth rates in the last quarter 2008. Over the last quarter 2008 and in the first quarter 2009 world trade has fallen by 20%. In 2009 world trade is expected to decline by another 13%. The most recent economic forecasts indicate an even worse outlook than that at the beginning of the year.

The March 2009 OECD forecast shows a deadline of around 4% in GDP for the Euro Area compared to a decrease of around 2% in the European Commission's January 2009 interim forecasts. The outlook for 2010 is also more pessimistic, with the OECD expecting a marginal drop of 0.3% in the Euro Area's GDP. The OECD forecast shows that unemployment will rise to around 10% in 2009 and to increase to 11.7% in 2010. Inflation is expected to slow down significantly to around 0.6%-0.7% in 2009-2010 on the back of declining commodity prices and slower wage growth.

Is there anyone out there who believes all this is of no relevance to us? Our rate of economic growth has slowed down to 1.6% in 2008 from around 3.5% in 2005-2007.

Luckily for all of us the domestic sector continued to contribute positively to GDP growth, sustained buoyant consumption and this at a time when we are suffering from a contraction. The contribution of the external sector was a minimal 0.1% in 2007, reflecting a situation where both exports and imports have dropped by more than 13%.  Tourism is suffering greatly as the international economic and financial crisis is negatively impinging on the travel trade worldwide.

In the first half of 2008 international tourism grew by 5% according to the World Tourism Barometer. However, the Maltese tourism industry has been hard hit by these developments, with tourist departures declining by around 10% and gross tourism earnings falling by 2.7% during 2008. As an economist I know the situation is serious, but I know solutions do exist and serious people are working on them.  

The thing is, we really do not have much room to maneuver. We're a small economy. The budget deficit forces us not to spend lightly and to prioritise. That is what the Maltese Government is doing. Our job is to identify the new opportunities, safeguard the jobs that exist and sustain those companies that have the potential for growth once the recession is over. This is not subsidization of lame ducks. This is supporting firms who are well managed and with growth potential but who are temporarily hit hard by falling demand and dumping of prices internationally.

Government is right in identifying the right measures to help the tourism industry focus on improving airline accessibility and sustain increased promotional campaign spending. The agreement with the Banks to provide moratorium on repayments of capital on house loans for redundant workers and loans for investments by hotels leads in the right way, but local Banks need to stop fooling around with interest rates and to be selective in supporting enterprise.  With more substantial support from the banks many firms can survive the difficult times, but I still see very little support so far.

We still need to further address the many market imperfections which may be contributing to higher inflations. We need to protect our producers without the many market interventions that we have today as these are not really ensuring a better return to our primary producers but simply sustaining high consumer prices.

We have also to rethink our port strategy and analyze correctly many commercial practices. We need to study the labour market. We cannot continue to have shortages and resulting wage pressures in the areas we need for our economic growth and continue to sustain so many wages, especially in the public sector where wage increases do not reflect productivity developments.

Above all we must however concentrate on our ability to attract more foreign direct investment, more orders for our firms and more tourists. We need to diversify more and seek with urgency the investments necessary to strengthen our potential growth areas. My aim as MEP would be that of concentrating primarily on this mission.