Malta will get a "worse deal" if it joins EU later

British Minister for Europe Peter Hain yesterday warned that Malta would get a worse deal if it did not join the EU now and asked to join in five or 10 years' time.

The UK, he said "had got a worse deal by putting off the prospects of membership".

Mr Hain said "it is a make-or-break time for Malta and Europe and the opportunity has to be grasped because there is no easy second chance, if there is a second chance at all".

"Britain found that it joined too late to influence issues such as the agricultural policy and others of vital national interest, and we lost out.

"We are supporting the (Maltese) government in its negotiations for accession because we think it is in Malta's interest and in Europe's too."

Mr Hain was in Malta for the first time for a day in which he had several meetings. Speaking at a joint news conference, after a meeting with Foreign Affairs Minister Joe Borg, he stressed the UK's strong support for Malta's accession.

"We will be Malta's best friend in the EU, just as we have been Malta's closest friend in the negotiations to secure membership - a good deal for Malta and a good deal for Europe."

Summarising his views on the situation, he said: "Malta is a first-class nation, taking its place in a Europe of other first-class nations.

"It is an exciting moment in our history and we are very pleased to be working with the government to achieve its objective."

Mr Hain said there was no justification at all for Malta to not to be granted a zero-VAT rating on food and medicine, as was the case for Britain and Ireland.

"We are fully behind Malta's position on this and we understand it perfectly. We are supporting it in the negotiations."

The meeting with Mr Borg revolved around the final phase of Malta's accession process and the subjects that are still up for discussion: competition, which is expected to be finalised this week, agriculture, taxation and finances.

On issues that needed to be resolved, Mr Hain said that "we are very understanding of Malta's position on a number of them, from agriculture to VAT and finances". He said these issues could be "satisfactorily resolved".

Mr Hain said his experience of the Maltese negotiators showed them to be very tough, fighting Malta's corner very hard in Brussels and doing a very good job.

Dr Borg said the UK was very understanding of Malta's position and, as it had invariably done in the past, Malta was counting on its support in the final phase of negotiations.

Mr Hain yesterday also paid a courtesy call on Prime Minister Eddie Fenech Adami, President Guido de Marco, and Labour leader Alfred Sant.

In the meeting with Dr Sant, the partnership that the Labour Party wants to build with the EU was discussed.

Mr Hain told Dr Sant that the MLP's position would not bring about the same benefits as membership, while Dr Sant replied that neither would it bring with it the same obligations.

Despite the fact that the UK Labour Party was in favour of Malta's EU membership and enlargement, Dr Sant said relations were good and he described it as a progressive party.

Dr Sant said every country chose what was in its national interest.

As regards the development of the EU, there was agreement on certain issues and divergent ideas on others, Dr Sant said.

Later, Mr Hain said he had a good discussion with Dr Sant.

Mr Hain pointed out that the British Labour Party's "historic error" was seeking to hold back from joining the EU and always thinking it could join later in the day at a better time.

Speaking about the euro, he said that "if you think of a small country on its own in a world where the dollar is the dominant country and the euro the second strongest in the largest single market in the world, I think being isolated from that is a real problem for a country like Malta".

At a public lecture at the Chamber of Commerce, he said that if Malta remained out of the EU, "it would be like Switzerland: having to adjust its laws and finances to conform to EU norms. But, like Switzerland, being outside the EU means abiding by EU rules, without being able to influence them as a member state like Britain does and Malta could do".

Answering the question on whether getting more involved in Europe meant giving up sovereignty, he said: "No, because there is a difference between giving up and choosing to pool sovereignty because it promotes our national interests."

He continued: "Nato shows that pooling sovereignty in appropriate policy areas can make nations stronger. So does the EU...

"Pooling sovereignty can mean compromises, which is sometimes hard for some commentators and politicians to understand. But real people know that in real life we cannot always get exactly what we want. Nor can other countries in these international bodies. We have been able to advance British interests by being right at the centre of those organisations - including the EU. Malta can too.

"This doesn't take away our sovereignty. It strengthens it. Power shared means power regained."

On neutrality, Mr Hain said: "We respect Malta's choice. So would the EU, as the experience of Ireland and other neutral member states clearly testifies.

"Malta's neutrality will be guaranteed."

In his address to the business community, Mr Hain said Malta had the opportunity to share in the new Europe, adding that island states like the UK and Malta had much to contribute.

Mr Hain said it would be a "tragedy" if Malta were left behind when the other nine countries joined in 2004.

"Our commercial and investment relationship is already extensive and should grow once more investors understand the opportunities that Malta's full participation in the single market would bring.

"UK business is alert to the opportunities in Malta and also of the gains that would result from greater access to markets to the East, bringing improved choice for consumers."

Mr Hain said he hoped the Maltese would vote in favour of EU membership in the referendum, and that the Irish would not deny other countries the benefits they have enjoyed over the last 30 years of membership in their upcoming referendum.

Chamber of Commerce president Reginald Fava said Malta required all the assistance its ally nations were willing to offer as it strived to convince the EU that as a small island economy, it deserved special treatment for a successful accession.

The budget was a crucial issue as Malta strived to meet the cost of implementing the acquis communautaire, he said.