30 December 1999 - 5 January 2000

The third millennium

As the second millennium of Christianity comes to an end it is now time to look at the challenges of the third millennium and also to reflect on our achievements over the years. We have come a long way as a nation and despite being ruled by many different foreign powers over the centuries we have managed to hold on to our identity and conserve our very rich heritage. We have progressed immensely ever since gaining independence in 1964 and becoming a Republic in 1974. Foreigners are often surprised that a nation as small as ours with no natural resources can have such a high standard of living, a GDP per capita of US$10,000, a strong financial services sector, a manufacturing base, a highly educated work-force, a modern infrastructure and a very active entrepreneurial class. All our achievements, of course, are a credit to our people; after all, there is no greater asset that a country can possess than its people.

In this century Malta made great strides forward, both politically and economically. Malta became a sovereign independent country. It embarked on a path towards democracy, not without some difficulties, but in the end democracy prevailed. In the late 1980s the country set out on a path of liberalisation and the conversion to a market economy with the private sector taking the leading role in the running of the economy. So certainly there has been much progress made over the years, especially in the last one and a half decades. We should also be proud of the social commitment shown by successive Maltese governments towards those who are in need of society's help.

Of course, we have many challenges ahead as we enter the third millennium. It is no use resting on our laurels and saying how great we are. We certainly have problems which have to be dealt with in a firm manner. We require commitment, determination and long-term vision so that we can really face the challenges of the new millennium. Our greatest challenge is without doubt our ability to enter the European Union. 1999 will be remembered as the landmark year when the EU gave the go-ahead to Malta to begin membership talks. The ball is now in our court and the country must make a great effort to overcome whatever obstacles stand in the way of Malta's EU membership. The government must involve as many different sectors of the country in a dialogue on EU accession and it must try to get as many people to support EU membership. It must also start seriously thinking about a professional public relations campaign in favour of EU membership so that the public will be well informed about the benefits of joining the European Union.

Another great challenge facing the country, which is certainly connected to joining the European Union, is to restructure and reform the economy. Malta must be well prepared to enter the global economy. The government has already made it clear that it intends to privatise a number of State-owned enterprises and this is to be welcomed. Liberalisation, hopefully, will also be on the government's agenda as we enter the new millennium. Most protective levies are to be disbanded over the next three years. The battle to bring down the deficit must continue to be a national priority.

However, more of an effort must be made to reform the public sector and improve its efficiency and to tackle the problem of the welfare gap. The pensions time-bomb, as it is often referred to, must not be allowed to explode and the government must encourage people to invest in private pension schemes, if necessary by giving people tax breaks. One also hopes that the government will have the determination to end certain restrictive trade practices which create such high costs for businesses, such as the port workers' scheme and the system of burdnara (stevedors) at our ports.

Our roads, as well as our public transport systems, need to be given a facelift over the years. These two sectors have been neglected over the years by successive Maltese governments but are absolutely essential for tourism, an essential part of our economy, as well as for a decent infrastructure which all Maltese citizens deserve.

We have every reason to look to the future with confidence, as long as we have the courage of our convictions. We must think long term from now and we must be prepared to undergo some pain for long-term gain. In the end, it will be worth it and once we have done whatever needs to be done, and we have found our rightful place in the European family of nations, we will never look back. This is what The Malta Business Weekly wishes for Malta and its future.