Labour's option 'one-sided solution' favouring EU

EU chief negotiator for Malta Arhi Palosuo has criticised the Labour Party's EU option, describing it as nothing more than a "one-sided solution" favouring the EU.

"Membership is clearly the option which makes sense. I don't understand why it should be worthwhile discussing any other policy at greater length because any other option would involve mainly obligations, duties, responsibilities - and very few benefits," Mr Palosuo said in an interview at his Brussels office.

Mr Palosuo said a free trade agreement with the EU would cover all sectors, including agriculture.

"You would have to dismantle the levies but you would get nothing in compensation. You will get free access to the European market, which is not really worth much to Maltese agriculture operators."

On the other hand, membership meant farmers would qualify for the benefits of the EU's agriculture policy, which incorporates a range of rural development programmes.

Mr Palosuo said it was encouraging to note the findings of the latest Eurobarometer survey, which showed a majority of Maltese voters favouring membership.

"I was delighted to read that the Eurobarometer has shown some interesting positive trends in the case of Malta. I hope this trend becomes stronger in the months prior to the referendum."

He refused to give specific details of the negotiations, but said there were some requests made by Malta which the EU deemed unacceptable.

"We will deal with them one by one. Some countries still have some major requests, and it is their right to ask for certain things, but it is also our duty not to accept certain demands.

"In the case of Malta, all I can say is that we have settled 26 chapters. At the beginning we had some requests which we thought were impossible, but as the negotiating process went on, we found an appropriate solution."

Mr Palosuo said Malta's final package will be presented to the negotiators in the coming days and expressed optimism that all pending issues with Malta would be ironed out prior to the Copenhagen summit.

He said the structural funds allocated to Malta would be reserved primarily for what he called "higher visibility projects", with the intention of giving the Maltese a better understanding of what the EU is helping the country to achieve.

Referring to Malta's request to retain a zero VAT rate on food and medicinals, Mr Palosuo said this was a difficult issue.

"After long negotiations it was agreed that Cyprus will have a transition period of five years. I think this is the same solution that will be proposed for Malta but again this is a matter for negotiation."

Asked whether he believed Maltese agriculture would survive under the EU's Common Agricultural Policy, Mr Palosuo's reply was in the affirmative.

"Absolutely. Just look around the EU. In no single member state has agriculture disappeared or even suffered. On the contrary, this sector is flourishing. I know Malta is different but it will do well adapting the rules of CAP.

"Import levies don't have a place within the EU. The border between member states will disappear. But instead there will be other compensatory methods to ensure the income of the farmers is guaranteed."

Speaking about the two-day General Affairs Council starting in Brussels today, Mr Palosuo said this would be the ideal place for the candidate countries to present their key messages to the EU.

"From then on we will refine our final positions."