After long, and at times tortuous, negotiations, Malta secured €2.25 billion in funds from the European Union for 2021-2027, double the amount obtained in February 2013 for the period 2014-2020.

The allocation under the multiannual financial framework is €1.923 billion and an extra €327 million comes from the coronavirus recovery instrument – a special programme to help economies get back on track after the pandemic. This top-up is in fact 50 per cent higher than was mooted just a few weeks ago and it does not include a loan element, thus providing the much needed breathing space for the local economy to get back on track following the inevitable stall caused by the pandemic.

The deal is even more remarkable when one takes into account the withdrawal of the second largest net contributor to the EU budget, the United Kingdom, and to the resulting loss of €75 billion from the bloc’s budget over the the next seven years.

During the five day meeting of the European Council the prime minister held discussions with the President of the European Council, Charles Michel, and other heads of government to explain the specific issues pertaining to Malta, explaining that despite our strong economic performance in recent years, Malta, as a small island, has its own unique challenges, and stressed that Malta should not be penalised for its efforts to keep unemployment low in recent years.

The deal means that Malta has secured  €842 million under the Cohesion Policy, which does not include a further €92 million for ReactEU from the Recovery Instrument, and is €66 million more than that  obtained in February 2013 for the 2014-2020 period.

10 per cent of EU funds will be earmarked for Gozo

For agriculture, Malta has obtained €191 million, €53 million more than in 2014-2020. This was possible due to a special allocation secured by the prime minister to support efforts in this area.

In total, under the EU Cohesion and Agriculture Policies, which amount to 60 per cent of the total EU budget, Malta obtained €1.125 billion. That compares sharply with the €793 million that we would have obtained under the European Commission’s proposal in 2018.

The government has decided that a minimum of 10 per cent of this allocation will be earmarked for Gozo, ensuring more funds than those ringfenced between 2014 and 2020. Other key instruments for Malta include Erasmus Plus, and funding for migration, borders and security and environmental programmes.

Even though Malta’s contributions will rise, because of our strong economic performance, we should end up with a net balance of €1 billion. This is €132 million better than what had been expected when the European Commission put forward its draft proposals a couple of months ago.

The importance of EU funding cannot be understimated, as evidenced by all the projects financed to date, such as the Oncology Centre for cancer patients at Mater Dei, the Primary Health Care Southern Regional Hub in Paola that is currently under construction, the Kappara Junction, the Marsa Junction flyovers, the Central Link project and the upgrading of rural roads in our villages.

The education sector has benefitted from a new campus at MCAST and scholarships for young people while financial support has given many small and medium enterprises a boost. Our water infrustructure is being overhauled while measures of support to the agriculture and fisheries sector continue to provide assistance in abundance.

The Maltese tourism product has been enhanced and our heritage is thriving with the impressive restorations of the Citadel in Victoria and the Grandmaster’s Palace in Valletta as well as the financing of various other restoration projects including the bastions of Valletta and Mdina.

The determination to get a deal was strongly felt during the negotiations. All member states need to get on with the essential recovery, and the agreement between member states is an important achievement for the EU to address the challenges brought about by the pandemic as well as to forge a way forward for the Union as a whole.

The Labour government was responsible for an economic boom in Malta in recent years and has steered the country through the pandemic, minimising its impact and placing us in a good position to bounce back. Now it has secured an allocation of EU funding for the next seven years.

We can look to the future with optimism.

Stefan Zrinzo Azzopardi, Parliamentary Secretary for European Funds