Two of Malta's leading business lobbies have welcomed a European Court of Justice (ECJ) decision to annul an EU law requiring trucks to return to their home country every eight weeks.
The Malta Chamber of Commerce, Enterprise, and Industry (Malta Chamber) and Malta Chamber of SMEs both said the decision was very good news for local truckers, as the contested law disproportionately damaged them.
On Friday, Malta and six other EU member states won a court ruling which ended a four-year dispute against the ‘return of vehicles’ rule in the EU’s mobility package.
Malta, Poland, Lithuania, Bulgaria, Romania, Cyprus and Hungary argued that it unfairly burdened local companies with excessive costs.
In a press release, the Malta Chamber acknowledged how the government listened to the Chamber’s concerns and believes the ruling is a “wake-up call” for a more informed approach to EU policymaking.
The Chamber said the ECJ found that the EU legislators had not adequately assessed the proportionality of the measures on all member states when it was first introduced.
“This ECJ judgement is a decision in favour of Malta’s realities as it marks a significant step forward for Malta’s road transport operators,” the statement said.
The Chamber said for the past years, island nations like Malta were disproportionately affected by the regulation as compared to mainland EU countries due to the now-annulled provision.
“For Malta, this meant additional, often inefficient trips involving long distances and ferry crossings. Many vehicles travelled empty, contributing to avoidable traffic congestion on European roads and increasing carbon emissions."
The Chamber said this not only undermined environmental efforts but also imposed additional costs on islands like Malta, where transportation is already more complex due to geographic isolation.
More detailed policymaking
"The Malta Chamber views this ECJ decision as a call for a more detailed approach to EU policies, addressing challenges unique to peripheral and island nations," the statement read.
In light of this ruling, The Malta Chamber renewed its call for the upcoming European Commission to introduce a "Territorial Proofing" or "Insularity Test" as part of its Competitiveness Check in the impact assessment process.
This test would ensure that EU regulations do not disproportionately affect Member States with unique geographical conditions, such as islands states and peripheral regions.
"The Malta Chamber stresses that significant legislative changes should undergo thorough impact assessments during the EU decision-making process to prevent unintended consequences, such as those caused by the eight-week vehicle return rule."
It called for enhanced meaningful dialogue and collaboration within the MCESD to ensure that upcoming EU legislation promotes fairness, sustainability, and operational efficiency for all EU Member States, without discrimination based on geographic location.
Chamber of SMEs: We must be more vigilant
The Chamber of SMEs also welcomed the ruling and thanked the Maltese representatives who worked on the case.
"The court’s decision reaffirms the importance of fair and balanced EU legislation that considers the realities of all member states, particularly those with specific needs for countries like Malta," it said in a statement.
The small business lobby also tempered that congratulatory note with a warning: Maltese stakeholders had to do a better job of eyeing EU legislative proposals, it said.
"The Malta Chamber of SMEs urges national representatives and stakeholders to remain proactive in identifying and flagging potential threats at the earliest stages of the legislative process," it said, calling for MEPs, government officials, industry experts and social partners to work together at EU level.
It said it was willing to work at EU and local levels "to promote and defend the rights of our business community, ensuring that future policies are tailored to the diverse needs of Malta."