Malta's Brussels property costliest among the 10 new EU states

The property purchased by the government for its permanent representation to the EU in Brussels is by far the most expensive among the purchases made by the 10 new member states, The Times has learnt.

By forking out Lm9 million (€21.1 million) for a nine-storey property in Rue Archimede, Malta has spent nearly three times as much as Poland, the largest new member state.

However, apart from Malta and Cyprus, the other eight new member states will have their embassy in a different location.

The government's decision to buy the property has stirred a hornet's nest with Labour foreign affairs spokesman Leo Brincat calling the Auditor General to investigate the purchase.

Defending the decision, government officials have argued that it did not make sense to keep renting out in Brussels and investing in property made more economic sense.

Two of the nine floors of the building, which Malta has purchased in the heart of Brussels, will be rented out to third parties.

Other parts of the building will be used to house Malta's embassy to Belgium, the offices of Air Malta and the Malta Tourism Authority, among others.

With the exception of Latvia, all the new EU states have invested in a property in Brussels, according to foreign government spokesmen and journalists contacted by The Times.

Contrary to Malta, where EU membership hung in the balance until last year's election, the majority of the 10 invested in a building a number of years ago, when property was evidently cheaper. In fact, the money dished out for property in Brussels differs widely between one country and another.

In 1999, the Czech Republic bought a six-storey building in Rue Caroly - just a walk away from the EU institutions - for 250 million Belgian francs (just over €6 million). The building, reconstructed by Czech workers, has three underground parking levels and a small cinema-like room.

Estonia had a permanent representation building in Brussels before it joined the EU. The government spent 32.5 million kroons (about €2.1 million) for renovation and construction.

Lithuania has paid €8.7 million for its permanent mission building in Rue Belliard - the same road currently housing both the Maltese embassy and permanent representation. The figure includes the cost for renovation and furniture, according to a delegation spokesman.

The Lithuanian embassy in Rue Maurice Lietart had been given as a "gift" by a Canadian/Lithuanian movement in North America, the spokesman said.

Latvia has been renting out a property in Rue d'Arlon and it currently employs 45 individuals, due to rise to 100 in the coming years.

A proposal to buy a new building in Rue du Commerce costing some €9 million was given the thumbs down by the Finance Ministry because some government officials deemed it to be too expensive, according to a prominent Latvian journalist.

Latvia has in the meantime decided to extend the rent agreement while the government looks for another building which is "convenient and affordable".

The permanent mission of Slovenia to the EU has been present in Brussels since 1994 when it bought a three-storey 100-year old building measuring nearly 1,000 square metres.

The delegation started operating there in 1997 when EU negotiations began and the government claimed it spent €2 million.

Eight years ago Poland bought land and an adjacent house in Avenue de Tervuren (not very close to the EU buildings) and demolished it.

By 1997, Poland erected a new building, also including a few flats and a garage, and though there was no official information about the exact cost of this building, the Polish media put it at about $10 million (€8.2 million). It can house 100 employees.

"After almost 10 years, Polish officials in Brussels think that it was really good investment," one official told The Times.

Slovakia bought a property in Brussels in 1997 costing €6.8 million and spent an additional €2.9 million on refurbishment. At present some 65 people work there.

Cyprus has just bought a building close to the Commission, which will also house the embassy, for a team of 50 workers.

A spokesman for the government would not give an exact figure of the cost, saying the building was currently still being refurbished. However he said the building would cost "two figures" but less than the €21 million spent by Malta.

Hungary constructed its permanent representation building in early 2003. Construction works were however required to suit it to the delegation's needs and offices and conference rooms were constructed. It cost €12.25 million and will house some 100 members of staff. Hungary had also bought an embassy around 10 years ago.