A €2.2 billion EU funding package stretching to 2027 will enable the government to keep up the rhythm of investment in infrastructure and capital projects, Prime Minister Robert Abela said on Monday.

Abela's declaration seeks to put to bed, once and for all, rumours that budget cuts due to the COVID-19 pandemic and Russia's war in Ukraine will force the government to shelve some projects.

"We will continue to invest in infrastructure and capital projects in the same way we did before," he said. "And these funds will also be helping us implement the urban greening projects that were prioritised in the electoral manifesto."

Last September, Times of Malta reported that several planned infrastructural projects which were to be entirely financed by national funds were expected to be frozen as the government attempts to cushion the spiralling cost of energy.

But it also reported that the decision would not impact projects which are partially funded by the EU.

'Biggest-ever pacakage'

First announced in 2020, the €2.2 billion funding package for Malta covers the period 2021-2027. Its introduction was delayed by the COVID-19 pandemic, which forced the EU and member states back to the negotiation table as governments scrambled to keep their economies afloat. 

Malta's allocation combines just over €1.9 billion in funding allocated to Malta from the EU’s core budget – its multiannual financial framework (MFF) – which was up for renewal, as well as €327 million granted as part of a coronavirus stimulus package.

The package was officially launched on Monday by Prime Minister Robert Abela, Economy Minister Silvio Schembri, EU funds Parliamentary Secretary Chris Bonett and European Commissioner for Cohesion and Reforms, Elisa Ferreira.

The government also launched a new website, fondi.eu, to help individuals, organisations and businesses understand what funds they are eligible for and how they can apply for them.

The website replaces six other websites that previously catered for EU funds, in an effort to centralise funding information in a one-stop, digital shop.

A revamped entity was also launched. Servizzi Ewropej f'Malta (SEM) - formerly known as MEUSAC - will help people apply for funds and implement funded projects, in a bid to bring EU funds closer to the people.

Prime Minister Robert Abela told reporters that despite critics saying the government would not be able to secure a hefty enough package, the final deal will see Malta get double what a PN government had gotten in 2013.

EU funds Parliamentary Secretary Chris Bonett said this is the biggest EU funds package that Malta has ever secured and is the culmination of negotiations that started in 2018.

Where will the funds go?

Some of the funds will be directed toward enhancing security, coastal surveillance and assisting agriculture and fisheries workers to invest in better and more efficient equipment and facilities to ensure ample food supplies.

The biggest chunk of the funds is intended to create further investment in small and medium enterprises, especially in those businesses which are investing in greener and cleaner energy.

Urban greening, infrastructure, schools and cultural projects will also benefit from this chunk of funding, and the long-awaited new mental health hospital will also be partially funded by the EU.

The package will also direct funds toward initiatives that create a carbon-neutral economy, namely a shore-to-ship project that will allow docked ships to draw electricity from the national grid. That is expected to drastically cut harbour emissions.

"However, there are also projects that help people more directly," Bonett explained.

"We meet many people to tell us that EU funds often feel inaccessible to them and we want to change that. If you think your story is too small to benefit from funding, we want to challenge that. Your story will be our biggest ambition."

He said the government is striving to cut bureaucracy and make the funding process easier for everyone.

Part of the funding package is called the European Social Fund+ and aims to directly help children, young people, adults, the elderly and professionals in all aspects of life.

European Commissioner Eliza Ferreira said the package aims at creating "a more modern, competitive Malta, where every place and every citizen can participate in the economic success. A greener and more energy efficient country with energy supply security, more renewable energy, less traffic and cleaner air around urban areas and sea ports. A country that invests in healthcare access for all, education, lifelong access to learning and builds all the necessary skills for the future economy".

"Together with the national stakeholders we designed these priorities, and together we will make them work," she said.

European Commissioner Eliza Ferreira. PHOTO: Chris Sant Fournier.

Economy Minister Silvio Schembri also boasted of the package and said the government has laid out a very ambitious plan, but the real success lies in ensuring that nobody is left behind and that every citizen benefits from the generated wealth.