The complex bureaucratic structure of the European Union, with its three legislative arms, has long been criticised as being detached from the daily realities of life around the Union. This has led to a decrease in the EU’s popularity in various countries, with Brexit being the most acute example.
I entered the fray of European politics as I have always believed that things may be done differently.
Throughout the last few years, I have come to appreciate the realities which make it difficult for MEPs to maintain contact with geographically distant constituencies. Often times it is easy to get lost on the insidious and important work of an MEP and perhaps pay less attention to the needs of the electors.
In my role as an MEP, I have chosen to take up various issues in the social, digital and consumer protection spheres which are most relevant to the man in the street. Locally, in the last few weeks, I exposed how hidden clauses in mobile phone contracts will allow economic operators to increase prices during the contract.
I am particularly fond of my role on the Petitions Committee which is specifically aimed to hear the concerns of society. But more importantly I kept coming back to Malta on a regular basis to meet people from all walks of life and representatives of all sectors of society.
We are living in a world where the gap between the haves and the have-nots is widening. The message I have been getting from constituents throughout the last months is clear – please do something about food inflation as prices are increasing more than wages and pensions. Inflation is a plague that has caused difficulties all around Europe and various bodies have voiced their concerns about how it is eroding our quality of life. External shocks such as COVID, Russia’s aggression in Ukraine and bottlenecks in the supply chain have created an unfavourable cocktail which has fuelled inflation way beyond what we were prepared for, and it does not appear that these conditions will abate soon.
Through fact-finding from my engagement with stakeholders, it became evident that local factors were fuelling inflation beyond what was being experienced abroad.
This top-up inflation does not make justice with the Labour government’s initiatives to address this matter.
The freezing of electricity prices and incentives given during COVID were meant to ensure that inflation would be at least on par, if not inferior, to that of other countries. Back in October, an investigation by the Times of Malta found that groceries in Sicily are around 30 per cent cheaper than Malta.
I was surprised that the Nationalist Party, with all its new-found vigour, chooses not to take up this matter. Promoting the protection of the weakest and least able has always been my topmost priority but perhaps their priorities lie elsewhere. Or perhaps the PN deems the very few benefitting as special and untouchable. Whatever the matter, I delved a little deeper and found that these factors consisted of a mix of long-standing traditions in the setting of local prices and other customs which, taken together, create the right environment for the making of a de-facto monopoly, particularly in the food supply sector.
The manipulation of a market is a violation of Articles 101 – 102 of the Treaty on the Functioning of the European Union, also known as the Antitrust rules so I felt even more dutybound to take action, especially given my role as a key spokesperson in the Committee on the Internal Market and Consumer Protection within the European Parliament.
The European Commission is empowered to investigate violations, issue fines, and seek damages as infringements may have an impact on the entire common market for goods and services and violations are frequently cross-border.
I have, therefore, alerted the President of the European Commission, Ursula von der Leyen, and Commissioners Breton and Reynders who are responsible for the internal market and justice respectively, about a potential breach of this legislation.
I found that these factors consisted of a mix of long-standing traditions in the setting of local prices... to create the right environment of a de-facto monopoly- Alex Agius Saliba
The EU disburses a substantial share of its budget – from our taxes – to subsidise farmers to ensure food security.
This effort is meaningless if, at least as Malta is concerned, food prices are becoming increasingly prohibitive due to the greed of a few conglomerates. I hope that this investigation will foster a change in these practices so that the benefits of the European common market may be enjoyed equally by all businesses and consumers. A fairer market and more equal distribution of wealth are the basis of sustainable economic growth.
Going forward, I strongly believe that the EU must step up its surveillance of the common market. Manipulation strategies may take different forms and are not always immediately evident. Our market is particularly prone to the formation of de-facto monopolies due to its small size and the island factor.
It would not be practical to expect the government to invest in data scraping and machine-learning tools to detect hideous patterns, and in the specialised investigation capabilities required to obtain undisputable proof in such difficult circumstances.
I shall work so that the EU is equipped with better legislative tools and administrative capacity to deal with such infringements swiftly and effectively. I will also promote the introduction of better platforms which aid the exchange of information between small-scale retailers across Europe.
We must however be objective and realistic. Investigations and legislative changes take time to complete. The difficulties we face in this sector due to our geographical circumstances may be mitigated but will never disappear.
Malta’s finest leaders from both political parties have advised citizens to hold their purse strings and compare prices in times of economic crises. I would advise likewise for the external shocks we are currently experiencing.
Following initial disagreement, a consensus was reached within our society that Malta should remain an EU member to obtain all possible benefits, not least through better shopping choices and more competition.
In the coming years we shall encounter increasingly dynamic challenges in an ever-changing world. The decarbonisation and transition to a greener economy may, if implemented fairly, can be a unique opportunity to decrease the poverty gap through substantial reduction in electricity bills.
Alex Agius SalibaI promise to continue working unabatedly for the rights of vulnerable and disadvantaged sectors groups. Together we can make society fairer and more prosperous.
Alex Agius Saliba is a Labour MEP.