Mark Miceli Farrugia (August 25) cannot understand one very simple and logical argument. Andorra's success was due to its possibility of creating its own niche in Europe by deciding - without any foreign interference - what incentives and conditions it could offer to attract foreign capital. Had it opted for EU membership, this would not have been possible.
I did not write that Malta should carbon-copy what Andorra did in order to become a fully-fledged tax-haven. But why shouldn't we promote Malta as a country offering favourable tax incentives which EU countries are precluded from offering?
As to our manufacturing industry, Mr Miceli Farrugia knows that the one geared for the local market is already suffering because we had to bow to EU orders to start removing levies and introduce costly conditions. The recent revelation by the government's own statistics office on the great increase in unemployment - despite the ill-advised increase in government employment - to the staggering figure of 12,000 unemployed people, proves that EU membership is already having a very negative effect - as predicted in the FAS (Ireland) report.
On manufacturing industry geared for the export market we already must be in line with EU regulations as otherwise they will have to be withdrawn. How then can we protect the existing manufacturing industry and attract new ones when such industries will have to be burdened with the same rules and conditions as those in mainland EU states, plus the added burden of being located in an island in the middle of the Mediterranean? If we do not offer any material advantage to bridge this limitation, the existing industry may die a natural death.
To conclude, I noted that Mr Miceli Farrugia did not mention anything about the special agreements which Andorra had reached with the EU and which it is now negotiating to expand. This proves that an alternative to membership exists. No one has suggested - not even your correspondent - that Andorra has been "isolated" as our pro-EU writers like to report.
Indeed, Andorra has done much better than most EU states and intends to remain outside the EU. So can Malta, if we conclude various bilateral agreements which will secure for Malta free access to the EU market as well as close cooperation in many fields, all designed to Malta's particular circumstances. Just like Andorra, Switzerland, Iceland and other European and non-European countries have done!