9 - 15 March 2000

Business urges EU consensus

by Anthony Manduca

In a joint statement issued yesterday, the Malta Chamber of Commerce, the Malta Federation of Industry, the Malta Employers' Association and the Malta Hotels and Restaurants Association said they had to comment on the lack of political consensus on the question of EU membership which again emerged from the speeches delivered by the Prime Minister and the Leader of the Opposition in reply to EU Commission President Romano Prodi's address to the House of Representatives on 6 March.

All the business associations in question agree with the government's view that EU membership is in Malta's best interest. "From a business point of view, it is not enough for the local political class to agree on fostering close relations with the European Union.

"The contrasting points of view on EU membership which were again expressed in Parliament last Monday create uncertainty among economic operators and do not support Malta's cause in attracting new investment (both local and foreign) as well as in establishing itself as a financial services centre of international repute.

"Furthermore, the ongoing debate on the recognition of the referendum regarding EU membership is creating a preoccupying situation not only in the present circumstances, but also in respect of future democratic referenda," the statement said.

During his speech in Parliament Labour leader Alfred Sant said that a referendum only binds the government of the day and that a new Labour government would seek to implement those measures which were compatible with Labour's vision of relations with the EU.

"The country needs a stable economic environment which is conducive towards the conduct of business, the fostering of new investment, as well as the creation of employment and wealth."

"This cannot be achieved unless there is consensus that the will of people will be respected. Given the right conditions, Malta should reap the largest economic benefits from EU membership.

"This conclusion emerges from recent updated studies conducted by the Malta Business Bureau which compare the advantages and disadvantages accruing to Malta from different levels of association with the European Union," the business associations said.

The statement concluded: "Of course, there are several steps that must be taken by Malta to be well prepared for such a momentous challenge. Indeed, these steps, such as industrial restructuring may, in some instances, be painful but need to be taken irrespective of Malta's EU membership bid.

"It is a fact that the world is undergoing a rapid process of globalisation involving inter-country investment and the dismantlement of trade barriers. If Malta dissociates itself from such developments it risks isolation thereby hampering its future economic growth. Our organisations consider the proposed EU membership as an excellent opportunity to enhance the country's chances of success for future growth and prosperity."

The GRTU, which represents retailers, was not included among the signatories of the statement.