Since the very moment of Malta’s accession to the European Union on May 1, 2004, EU funds have made a visible and impactful change in the lives of the half a million citizens of the magnificent island state.
Malta has brought to the EU its unique geostrategic location, reinforcing the EU Mediterranean dimension. In turn, EU membership has increased the links of the country to the rest of the European continent and EU funds contributed to reduce the costs of insularity.
In these unprecedented times that we are faced with today due to the COVID-19 situation, projects such as the new health centre in Paola – serving as a primary healthcare regional hub for the south of the country – or the new blood bank in the San Ġwann industrial estate are here to remind us of the impact of EU cohesion policy funding in Malta over the years. But they are just an example of what cohesion policy has supported.
Cohesion policy investments in Malta – totalling €855 million in the country’s first full financial programming period (2007-2013) – had substantial and tangible results in many areas.
They enhanced knowledge and innovation, promoted sustainable tourism and urban regeneration, provided solutions for safeguarding the environment, improved education and skills, promoted an equal and inclusive labour market or strengthened the institutional and administrative capacity.
In the following period (2014-2020), €384 million from the European Regional Development Fund (ERDF) contributed to Malta reach its full potential by supporting the productivity of enterprises, research and innovation, the shift towards a more low-carbon and environment-friendly society, health and social development as well as education.
A striking illustration is the delivery of lab equipment, enabling the University of Malta to start research activities in bioengineering, robotics, manufacturing and transport. By end-2019, around 50 researchers undertook research with such equipment.
Still in the 2014-2020 financing period, €218 million from the Cohesion Fund ensured water quality and supply, sustainable water management and the development and upgrading of roads that integrate the trans-European transport network.
The rehabilitation of a former landfill at Wied Fulija, the setting-up of a multi-material recovery facility and a national campaign encouraging sustainable waste practices in households and beyond (‘Sort It Out!’) are a few examples of projects making a difference in Maltese citizens’ lives.
EU funds have made a visible and impactful change in the lives of the half a million citizens of Malta- Elisa Ferreira
The promotion of social inclusion, the fight against poverty and the improvement of healthcare have also been high on the agenda of EU cohesion policy in Malta with €106 million of European Social Fund (ESF) investments in the areas of employment, social inclusion, education and capacity building.
For instance, the ERDF-funded independent living facility in Naxxar has supported the integration of vulnerable persons, while the Meeting Place in Marsa opened its doors in 2019 to over 50 NGOs that have used the premises to outreach disadvantaged groups. Pre-employment training, sheltered employment, job coaching and mentoring are among the services offered via ESF-funded projects.
Moreover, cohesion policy support to the so-called ‘SME initiative’, which provides small and medium-sized enterprises with reduced interest rates and lower collateral, has largely facilitated access to finance by helping 680 SMEs benefit from a portfolio of loans of almost €90 million by late-2019.
As the coronavirus outbreak presents a major challenge to the entire European Union, Malta has taken full advantage of the Coronavirus Response Investment Initiatives’ (CRII and CRII+) flexibilities. More than €14 million have been made available for the purchase of health equipment: five million of personal protective equipment (PPE) items, 340 ventilators and 78 bed spaces. A further €112 million are expected under REACT-EU this year.
Surely, many more challenges loom ahead. We face the deepest crisis in the history of the European Union. COVID-19 is a sanitary and social tragedy and is at the origin of a major economic crisis. This is a most sobering moment that requires us all to rise to the challenge. Under a proposal by the European Commission, member states and the European Parliament approved a most ambitious recovery plan – Next Generation EU. It will mobilise €750 billion to help the most vulnerable member states face the economic and social impact of the pandemic.
It will come on top of the €1.1 trillion 2021-2027 EU budget. This is a unique opportunity for the EU and for its member states. We will have unprecedented firepower to fight the economic and social crisis. It is also an enormous responsibility at the national and regional levels. We must use these resources well, for the benefit of the next generations.
The EU cohesion policy will be at the core of this effort to quick-start the recovery and ensure that the EU and all its member states’ economies emerge from this crisis greener, more digital and more competitive. In Malta, cohesion policy alone will mobilise €861 million in 2021-2027 in grants to support investment, to build up skills and social infrastructure and to fully unlock Malta’s growth potential towards a greener and competitive economy.
This is what we aim for because in a Union of 27 success can only be achieved collectively and leaving no one behind.
This article is part of the OurEU.mt campaign, which is being managed by CiConsulta’s ComuniqEU, with the financial support of the European Union.
Elisa Ferreira is European Commissioner for Cohesion and Reforms.