European Council president Charles Michel has said any impact on Malta from a new EU shipping tax should be seen in the context of European Union money pumped into the country since it joined the bloc.

Michel was responding to questions from Times of Malta during a session with journalists held to mark 20 years since the EU’s largest enlargement in 2004. That year, 10 new countries joined the Union, including Malta.

Asked for assurances the EU didn’t favour large countries while forgetting smaller countries like Malta, Michel stressed the European Council was interested in “taking care of all states with the same level of respect”.

But such assurances have been brought into question in recent years amid what has been viewed as a lack of support for frontline countries on migration and new rules that have been criticised for disproportionately hitting island states harder.

In January, the EU introduced a new EU environmental tax on shipping that a recent European Parliament report said had only served to divert cargo ships to cheaper non-EU ports, a danger the Malta Freeport warned about in advance.

But, according to Michel, this latest measure should be seen in a broader context.

“You mention one specific element for Malta – the tax on shipping. But we have to take into account the global picture and all the solidarity shown by the EU towards Malta in terms of economic support, development and infrastructure,” he said.

Rule of law

During Monday’s session, rule of law featured prominently, a topic Michel said was a “constant concern” at an EU level.

But with multiple countries accused of flagrant abuses of rule of law, including Bulgaria, Romania and Malta – which has featured in several European Parliament resolutions on the subject in the years following the murder of journalist Daphne Caruana Galizia – can the EU really impose rule of law on member states?

And is it really that committed to doing so while seeming to prioritise European cohesion and enlargement at all costs in the face of Russian aggression on its Eastern flank?

“Yes, we are determined... for the European Council, it’s a condition. Rule of law is the foundation, checks and balances are fundamental, democratic values and human dignity are who we are,” said Michel.

“But, having said that, we need to be very clear and make sure we show there are normal standards when we assess the rule of law question. The rule of law is something that should be seen – and this makes the debate sometimes difficult – in a broader context.”

Michel stressed “not only one measure” should be used to decide if a country is democratic, arguing it was also important to examine the freedom of expression and the press and the independence of the judiciary.

Nine countries are currently being considered for EU membership including Ukraine, the first country in the EU’s history to apply for membership while in a state of war. File photo: Ukrainian Presidential Press Service/AFP

Future enlargement

Describing further planned enlargement of the EU as a “geopolitical strategy” and “responding to the call of history”, Michel said it was against a backdrop of “geopolitical chaos” caused by the war in Ukraine and in response to it.

But he said the EU’s attitude to prospective new members had not always been seen as reliable, admitting the union had “procrastinated a lot and probably not given a clear sign we were determined to engage with them”.

“It was and still is difficult for them to be certain we are credible when making commitments”, he said.

Nine countries are currently being considered for EU membership including Ukraine, the first country in the EU’s history to apply for membership while in a state of war.

Populism and money

The European Council president stressed it was important to “tell the truths to the people” in the face of populism and “avoid considering there would be some taboos about which we don’t talk in the democratic conversation”.

Turning to economic matters, Michel said around €300 billion worth of European savings were “fleeing” to the US every year, putting the Americans in a position to “buy promising start-ups and companies launched on European soil. This, he said, was “stupid, not acceptable” and required action.

And while Monday’s discussion focused mainly on weighty issues, there was still time for humour. Asked by one journalist about the prospects of candidates from Eastern and Central European countries that joined the bloc 20 years ago for some of the EU’s “top jobs” following the June elections, Michel shot a question back.

“You didn’t sincerely think I would answer that question, did you,” he joked.