6 - 12 July 2000

The UK wants a successful enlargement of the EU - Keith Vaz

by Ivan Brincat

Britain's Minister for Europe Keith Vaz yesterday outlined all the benefits Britain had gained as a result of European Union membership citing the increase in trade, investment and jobs among others. Mr Vaz was speaking at a meeting at the Malta Chamber of Commerce. Enlargement is the most important challenge facing the EU today, and the UK is its greatest supporter, he said.

"I want to see, and I know that Tony Blair wants to, a rapid and successful enlargement of the EU." Mr Vaz said he was looking forward to continuing and deepening the relationship between the two countries within the European Union. "I am pleased to see the progress that Malta has already been able to make in its negotiations with the EU." He said that in the EU, countries retained their cultural and national identities. "You will be Maltese people in Europe. Take football as an example. No one supports the idea of having Europe participate as one team in the World Cup," Mr Vaz said.

Mr Vaz urged the business community to speak out in favour of the single market since this was good for business. "This does not mean you become political but you speak on the importance of trade and commerce. You must ensure that the public opinion knows what is happening," he said. "The arguments, such as job prosperity and benefits to the economy should be highlighted now," he said. Mr Vaz said Malta has made fantastic progress in the negotiations and said Britain was there to support Malta. "We have already told the Swedish presidency that they have to finish the job."

Joining the EU is a challenge which cannot be taken lightly, it needs far-reaching reform and rigorous implementation of EU laws and practices. "But I believe that reform is beneficial in itself, helping member States and applicants to adapt to competition in a globalised economy."

He said that on his appointment as Minister for Europe, Tony Blair asked him to go out and spread the word about the benefits of Britain's membership of the EU.

"So I regularly travel around Britain to tell people directly about those benefits. I tell them that since Britain joined the then European Community in 1973, British business has become more efficient, more competitive and that consumers have found their rights and interests promoted to a much greater degree. Much of this can be attributed to EU membership."

The minister said membership benefited British companies. In 1973, 35 per cent of the trade was with EU partners. That figure has risen to nearly 60 per cent today - worth £120bn last year. An even greater proportion, some three quarters, of Malta's trade is already with Europe.

"The facts are clear. Like Malta, the EU is our key market. Like Malta, we export more to France and Italy than to the whole of North America. Increased trade with Europe has brought inward investment to Britain. It has brought jobs too: 750,000 smaller British companies and up to 3.5 million jobs depend on Britain being in Europe," he said.

Mr Vaz said membership of the EU attracts inward investment. The UK itself has attracted a great deal. Enlargement will bring new opportunities for investment. It will create the largest single market for trade and investment in the world with more than five hundred million consumers. One thousand Japanese firms and at least 4,200 American firms have invested in the UK. Malta has already attracted substantial inward investment, but membership of the single market would bring in more. It is not just the big multi-national companies that benefit from this: Malta's SMEs could benefit too, like British SMEs.

He said that the EU also brought other benefits to the UK work place that affect the daily lives of citizens. It has championed equal pay and pensions for women and part-time and fixed-term workers.

British consumers benefited from EU membership. They benefit from cheaper prices, higher quality and more choice. There is, for example, easier access to lower priced cards and white goods across the EU.

The UK supports enlargement because it will spread these benefits more widely. It will bring much greater peace, stability and safety to our continent and it will boost economic growth in an expanded single market. An enlarged single market will make transactions easier and more predictable. It will simplify customs procedures and establish common standards across a huge area.

"Enlargement not only provides for the free movement of goods. It also provides for free movement of capital. The City of London has been a major beneficiary of this. I understand that Malta too has ambitions to develop its financial services industry further," the minister said.

"Businesses for their part can do what they do best, seek out opportunities, make contacts, learn about each others' strengths and weaknesses and contribute to our mutual prosperity. The EU and the candidate countries have a wealth of resources to offer each other - human, financial, knowledge based and physical. To me, the benefits of EU membership are clear. That is why I support the expansion of that membership. And that is why I look forward to seeing Malta join as soon as possible," he said.