A document titled " Report Updating The Commission Opinion On Malta's Application For Membership" is available over the Internet at www.maltadata.com/europe.htm . The extensive report constitutes the European Commission's response to the September 98, request by the Government of Malta to reactivate its application for membership of the EU. While the conditions of membership and the commission's findings are spelled out in remarkable detail, the acquis communautaire makes no reference, nor does it give a single hint, on the consequences Malta will face once it becomes a member EU nation. The answer is left to the people of Malta some of whom will aspire a sense of confidence and jubilation at the prospects of formalizing their ties with Europe. Others will fear the passing away of old ways, which favor long-standing protectionism by government legislation for business and trade organizations, over privatization and competition through free enterprise. Matters of equal importance not contained within the writing, is the long term survivability of the Maltese as a distinct people and their treasured native language. If none else the document puts to rest any pretentious claim by the Maltese public of not being fully informed by the party in government, on the ramifications of their country's integration within the European community.
The overall finding of the commission is that the screening of Malta's legislation should begin as soon as possible with a view of starting negotiations at the end of 1999. While concluding that Malta has made notable progress in meeting EU standards and expectations in several areas of law and commerce, it raised serious questions on strict compliance. It cited by example violations concerning the protection of state owned business entities, inflated public sector employment and heavy subsidization of the shipbuilding and ship repair industries. Preferential treatment under Maltese law for local manufacturers over foreign suppliers was ruled incompatible with EC public procurement rules. Clearly these roadblocks must be moderated, as a price of admission into an elite club where free market forces rule supreme over government subsidies and regressive trade tariffs. It remains to be seen if the Maltese public are ready, willing and able to give away cherished privileges which more than a few see as their birthright. The shadow of socialism, and the expectations of birth to grave government freebies hang heavy in Malta. The harmonization of the Maltese way of life with a more liberal European attitude may prove more difficult than commonly realized. This conflict of interest will be particularly more focused on matters regulating the cozy arrangement now existing between church and state, and the resolution of social issues which tax the moral fiber of each individual, such as abortion and divorce. Since the issue of joining the EU cuts to the bone, it is important that membership should be the subject of a referendum.
The commission's avis makes several specific points on Malta's economy which are worthy of note. It calls for a root-and-branch overhaul of the entire regulatory and operational framework of the Maltese economy to integrate it with the EU's. That is a big order for a small nation to fill, which would virtually require restructuring of existing institutions and the demolishing of vested interests and nepotism. As a start it would require downsizing an inflated public sector employment , which stood at 40% in 1997 or some 55,000 persons. There is no way at the moment that laid off civil servants would find employment elsewhere within the private industry, unless an infusion of foreign investment capital is funneled in under attractive EU terms. Theoretically Malta is well suited to increase its share of the export market in the service industries, particularly in software development given its highly educated English speaking population. The free movement of capital was also cited. The partial privatization of two of three state owned banks, the entry by the Midland Bank of the UK, and the opening of financial markets for foreign credit institutions were seen as positive steps towards increased competition and the institutionalizing of a market oriented system.
In view of accession certain markets still covered under monopoly, notably telecoms and postal services, will have to be opened for competition, as are similar cartels of a commercial character. Other identified protectionist market sectors included uncompetitive, inefficient industries producing poor quality items mainly for the local market. Agriculture and local fisheries were said to need major reform . Significant improvements are needed in the intellectual and industrial property rights sectors as well. Pirating of CD's and videotapes is a way of life in Malta, and no one seems to care about the consequences of this illegal but highly profitable cottage industry. No opinion will have been complete without concern to environmental and natural protection. The delicate issue of a year round open season for migratory and local birds was taken into account. The commission noted it is important that Malta fully transposes the acquis communautaire as far as the Birds Directive is concerned. Maltese hunters beware!! The eyes of all Europe are upon you, and its ears are cocked to the sound of your musket shooting down tiny sparrows for supper!!
The final segments of the commission's report dealt with secondary matters. It noted that operational and safety conditions for vessels carrying the Maltese maritime flag are less stringent than those generally applied to EU member states. It found fault with Maltese legislation regarding Product Liability, Misleading Advertising, Unfair Contract Terms and Distance Selling. It said Malta had no specific legislation on asylum and that it took only refugees of European descent , a gap which it declared must be rectified without delay. Malta's strict neutrality provisions, together with its particularly close relations with Italy were mentioned.
On the basis of the commission's findings it would seem that Malta has an uphill path to travel before it can accommodate the EU requirements for membership. Substantial work remains to be done in most fields examined in the report. Further it was ominously concluded that as a result of Malta's decision to freeze its application for two years, it reduced its exposure to the acquis. The implication is clear. Those that leave the line cannot be expected to regain their slot without paying a penalty. Yet in spite of Malta's non-compliance the commission has recommended to the council that the screening of its legislation should begin as soon as possible, with the view to starting negotiations at the end of this year. The commission expects that when the European Council discusses the possibility of extending the accession negotiations, Malta will be able to join the candidate countries with which negotiations are already underway.
E-mail to Joseph Vella: vellajoseph@msn.net
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