Ahead, not behind us

For many years the Nationalist Party's consistent message was that Malta's European Union membership would guarantee us a better quality of life: top European standards in education, healthcare, social services, conditions at work, roads, investment, jobs, prosperity, and democratic, efficient and accountable governance.

The keyword in this message is "guarantee". We were not told that membership would be an opportunity for us to improve our quality of life. We were told that membership would automatically guarantee us a better quality of life. When you are presented with an opportunity you still have to work hard and smart to turn it into a real, tangible benefit. Whereas when you are guaranteed a better quality of life, all you have to do is wait for it to happen, since everything will fall into place for your own benefit.

The Economist Intelligence Unit has just published a report compiled together with top European banks which has a very focused message for countries like Malta, less than a year away from becoming member states of the EU: "Success is not guaranteed; joining is no guarantee of catch-up growth." New member states need good and effective policy-making if they are to turn EU membership into a real opportunity for a better quality of life for all their people.

Possibility, not guarantee

The report 'Europe Enlarged: Understanding the impact' provides a warning "against complacency against the perception that the business of enlargement is already behind us, not ahead". This is echoed in a report 'The new shape of enlargement' just published by the European Economic and Social Committee:

"The fact that accession negotiations were completed... does not mean there is less work to do on enlargement... for the candidates themselves, there is even more to do..." The report of the Economist Intelligence Unit points out: "Many of the economic effects will be palpable only after accession."

Labour MP Noel Farrugia has been asking a number of questions (PQ 260-263) in parliament about these economic effects. The real answers to these questions will be given in the years to come as the various sectors of the economy will start feeling the impact of EU membership. In its report the Economist Intelligence Unit goes on to warn:

"For accession countries, EU entry offers only the possibility, not the guarantee, of seeing their per capita GDP converge rapidly with EU norms." As proof that EU membership does not guarantee catch-up growth, the report mentions Greece "where the ratio of per capita GDP to the EU average has risen little since Greece joined in 1981".

The report goes on to argue that EU membership does not suspend the ordinary laws of economics. "Poorer countries that keep public spending down and taxes affordable, while maintaining a good standard of government, will grow faster than countries that let their public sectors bloat and their tax burdens rise. Accession countries may think the second course irresistible as they struggle to meet EU norms written with rich countries in mind."

No easy option

There is a real worry that complying with these EU norms will result in "throttling regulations" that erode cost advantages that over the last few years have attracted foreign direct investment to countries that will be joining the EU together with Malta in May 2004. EU membership does not guarantee automatically economic success, prosperity and a better quality of life.

In fact EU membership obligations compel Malta not to deviate from one-size-fits-all EU regulations in designing schemes to promote investment and growth in manufacturing, tourism and financial services. EU membership is no easy option for Malta. We (government, opposition, parliament, civil service, unions, private sector, non-government organisations, media) have to work harder and smarter... if we are to turn EU membership into a real opportunity for a better quality of life for all those living on these islands.

We will only succeed if we manage to create and carry out the right policies... easier said than done as government has for years failed to tackle serious problems piling up in our country, guaranteeing that EU membership will automatically solve all these problems... and we will live happily ever after.