The Chamber's EU stand and national interest

Further to its hugely successful seminar "The costs and benefits of Malta's negotiated package with the EU", weak criticism is occasionally levelled at the Chamber of Commerce by EU sceptics for its pronouncements in favour of EU membership made on that occasion.

The Chamber, however, fails to see any justification for such criticism. Since 1998, the Chamber has carried out no fewer than four surveys on EU membership. These showed a pro-EU stance by Chamber members. In particular, out of the 61 per cent of Chamber members who took part in the latest survey conducted after the conclusion of the Malta-EU accession negotiations, 91 per cent recommended to the Chamber council to endorse the final negotiated package.

This feedback obtained from the grass-root levels runs congruent with the conclusions of various studies carried out by the Malta Business Bureau on behalf of the Chamber of Commerce and the Malta Federation of Industry. These studies concluded that EU membership was the most viable option for Malta in the medium-long term among the various plausible alternatives.

One such study, entitled "Future Malta-EU relations: A business perspective", also outlined certain benchmarks which indicated what funding Malta would be eligible for under the prevailing conditions of the time. This approach continues to attract unfair and pitiful criticism as the figure of Lm50 million continues to be quoted out of context.

As I said at the conference when replying to questions, the Chamber cannot be criticised for proclaiming that Malta would be eligible to receive about "Lm50 million per annum or 13 per cent of ordinary tax revenue" in structural funds. This statement was made way back in July 1998 at a time when Malta's EU membership bid was "frozen" and when the business community was left watching as a great opportunity for future prosperity was quickly passing us by.

Those times were equally different for the EU. The pool of EU funds has experienced limitations due to the bleaker financial and economic conditions in the main contributing nations, in particular Germany.

Furthermore, the Union is cautious about the absorbing capacity of the candidate countries in the early stages of accession. Clearly, if Malta proves that it can absorb most of the EU funding between 2004-6, it would stand a good chance to secure additional funding post 2006 when it would be rightfully entitled to a seat at the negotiating table.

The Chamber looks forward to the time when Malta can exercise its right to be able to demonstrate its negotiating prowess once again at such fora and ascertain that it continues to obtain what it rightfully deserves.

Had I been given a crystal ball, I would have perhaps been able to confirm that, other things remaining equal, the Chamber might have been proved right in calculating the figure based on the Irish benchmark. Besides, the Chamber has amply explained that money is not the major issue insofar as its EU membership stand is concerned.

The Chamber has also reiterated recently that it is proud to conduct its business in an apolitical manner. Its sole interest is to seek the common good because this is conducive towards obtaining better conditions in which its members can operate their business.

It took the opportunity of publicly applauding the Labour party for declaring it would retain VAT if it were to be returned to power at the next general election.

This decision was a direct consequence of the Chamber's strenuous efforts in maintaining close contact with all political parties with a view to influencing the country's policy-makers in favour of Malta's main economic and competitive requirements.

In the Chamber's view, irresponsible criticism tinged with partisan political undertones does not contribute anything to the national interest except further political division.

This problem is hitting our economy and, while repeatedly condemning the political leaders for allowing this to prevail, the Chamber is doing its utmost to try and narrow the gap which separates the country's main political forces.

This would be to the nation's benefit which is all the Chamber is interested in. The positions taken by the Chamber are based on facts, not mere fantasies or political inclinations.

Mr Fava is president of the Malta Chamber of Commerce.