This is the first of four articles reporting on a recent talk at Il-Ħaġar, Gozo on May 3.
Dr Borg began his talk by making the point that the very first step taken by Malta towards the European Union was soon after Independence with the negotiation of an Association Agreement with the then European Economic Community (EEC). This Agreement was signed in 1970 by the Borg Olivier Government. The aim was a Customs Union but the long-term objective was Membership. The customs union had to be attained in two stages within ten years.
Barely a year after the signing, the Partit Nazzjonalista lost the general election held in 1971. It could not therefore proceed to bring about the customs union as it ended up in opposition and the new Labour Government was not interested in such a relationship. It was more interested in facilitating the setting up of industries in Malta by giving them protection by the full use of fiscal and physical barriers against any possibly competing imports.
During the period from 1971 to 1987, that is, during the Mintoff / Mifsud Bonnici government, there was no real progress with regard to a customs union between Malta and the EEC.
Following its electoral success in 1987, the Fenech Adami government submitted Malta’s application for Membership on the 16.07.1990 after a comprehensive report on the pros and cons of membership was made and a Cabinet decision was taken to submit the application.
Years of preparation followed – various reforms and changes were made between 1990 and 1996. Examples include the dismantling of tariff barriers, the reform of our taxation policy, in particular with the introduction of VAT, company law harmonisation etc.
Despite these changes there was no clear indication that Membership would occur any time soon when the time had come to hold a general election in 1996. The PN in fact lost the general election held on the October 26 1996. In the speaker’s view this was partly because of the introduction of VAT which was negatively perceived by the electorate and also because of, and as a direct result of, the Labour Party campaign which fomented a negative sentiment on the EU (“we are introducing tough changes but the EU is simply brushing us aside”).
The new Labour Government immediately froze Malta’s application for Membership. By a stroke of good fortune for our EU membership aspirations, the Sant Administration only lasted two years. A General Election was held in 1998 which the PN won. The electoral success of the PN after such a short period in Opposition was, in Dr Borg’s view, attributable partly due to a positive change in sentiment – because the EU actually began negotiations with a first group of applicants, including Cyprus – and also to an undertaking given by the PN when in Opposition that once it would again be in Government it would reactivate the application for membership and then hold a referendum immediately following the successful conclusion of negotiations.
The second Fenech Adami Government immediately proceeded to reactivate Malta’s application for Membership. This was followed by an intense period of active preparations for negotiations.
Accession negotiations started with Malta in February 2000.
A whole setup was put in place to deal with all aspects of negotiations.
This consisted of:
A Cabinet Committee (political body – led by the Prime Minister)
The Core Negotiating Team (technical team led by Richard Cachia Caruana)
MEUSAC (consultation mechanism with all stakeholders chaired by Joe Borg)
MIC (information centre run by Simon Busuttil)
Negotiations were concluded in December 2002
Malta managed to negotiate a very good package – with a large number of transitional arrangements and other special arrangements (workers, real estate, fisheries) and three declarations, one on abortion another on neutrality and a third on Gozo (which noted the economic and social specificities and drawbacks of the island).
The Referendum followed on the 8 March 2003. Almost 54% voted in favour
And a General Election was held almost immediately after on the 12 April 2003 which was won by the PN
The signing of the Treaty of Accession in Athens took place on the 16 April 2003
Malta became a Member as from the 1 May 2004.
Dr Borg then asked: Has membership been a success story?
He said that It is safe to say that today there isQuasi full acceptance of the EU by the Maltese. The positive perception of the EU is the highest or at least amongst the highest of all the EU Member States. Referring to the results of the Eurobarometer Reports over the last ten years he said that over 80% rate Malta’s experience highly today from the almost 54% (53.6%) voting yes in 2003.
We have takenhuge strides in various economic sectors:
– Malta has become as an attractive location for companies to do business in Europe
– Malta has benefitted from the considerable funding opportunities coming from the EU.
Membership has meantsignificant benefits for the Maltese, and our youth in particular, in the fields of Education and Work Opportunities
We have experienced rapid modernisation in the social field and in digital infrastructure.
Malta became a member of Schengen on the 21 December 2007. This has meant for us free movement within the whole of the Schengen area.)
The introduction of the Euro on the 1.1.2008 meant no need to exchange currency when travelling within the Euro area and no loss/charges on exchange.
GDP has grown significantly as did employment – Malta places 9th in the EU with an index of 107 (the EU average being 100) in 2023. In 2013 it had already grown to 91 from 72 in 2004. The Purchasing Power (adjusted) per capita was €14,120 in 2004 and we ranked 17th among the EU Member States. In 2023 it was €40,900 (EU average was €38,100). According to these latest figures found, once again we rank the 9th Dr Borg said.
Dr Bord then continued his talk with a look to the future.
