European lawmakers need to be more sensitive to how EU legislation impacts impact all member states, Prime Minister Robert Abela argued on Monday afternoon during a meeting with former Italian Prime Minister Enrico Letta.

Letta was in Malta for a brief visit as part of his ongoing work to draft a report on the European single market. Letta is meeting with European leaders, ahead of the report’s publication later this year.

During the meeting, Abela argued for a legislative process that takes the needs of peripheral member states into account, citing the FIT for 55 directive,  an EU-wide push to reduce emissions across the bloc by 55% by 2030, as an example of legislation that may not adequately address the needs of smaller member states.

The FIT for 55 directive introduces an Emissions Trading System which obliges shipping lines to purchase ‘allowances’ to offset their carbon emissions when travelling to EU ports.  Malta fears that the scheme will raise prices in Malta since all caroges come by shipping.    

Letta has previously called for a European-wide industrial policy which would restrict countries’ dependence on state aid and bring to an end the “national fragmentation” that currently exists, with varying rules across different countries.

During the meeting, Abela called for a policy of “flexibility” in terms of state aid, particularly when it comes to critical sectors such as transport, digital connectivity and energy.

Last year, the European Commission rejected Malta’s request to grant further state aid to ailing Air Malta, resulting in the airline’s closure next Spring.

The EU has also repeatedly called on Malta and other member states to wind down their reliance on energy subsidies and direct those funds towards their growing deficit. Malta is set to spend over €320m on energy subsidies this year alone.

Earlier in the meeting, Abela outlined that connectivity is crucial for peripheral island states such as Malta, saying that this needs to be safeguarded.