The concept of being a member of the European Union was never that of sitting idle at the decision table and merely accepting whatever funds are thrown our way but was always about being an active member.
The very essence of being a proactive member of the EU is that of contributing actively in debates, putting forward contrasting points of view and seeking to tailor legislative proposals such that the national interest would be protected.
Sadly, it seems that our government fails to understand that one of its duties as a government is this proactive approach within the EU and, hence, the need to safeguard Malta’s national interest.
The EU is currently at an advanced stage of implementing an initiative called ReFuelEU, which is being sold as a green initiative intended to reduce the aviation industry’s environmental impact. Stripping away the fancy language with which the initiative is being sold, in essence, the initiative amounts to an aviation fuel tax.
In order to understand why the EU would resort to proposing such a tax one needs to consider that most of the member states are continental countries. These are countries where international travel is not exclusively linked to the aviation industry.
If someone in the middle of Madrid wants to get to Warsaw, that person is able to consider taking a train or driving from one city to the other. Indeed, this is the reality all the way from Lisbon on the western-most frontier of continental Europe to Riga on its eastern flank.
An aviation fuel tax will have a disproportionate impact on Malta- Adrian Delia and Angelo Micallef
Things are different for Malta; save for our sea connectivity with Sicily, our only realistic option for international travel is taking to the skies. This makes an aviation fuel tax a measure that will have a disproportionate impact on Malta for it will, in essence, impact Malta’s only means of connectivity with other countries.
Connectivity with other countries is essential and will continue to be increasingly essential in the globalised economy we live in. Connectivity is not only essential for our crucial tourism industry, which employs thousands of families, but is also essential for some of our most strategic economy niches, which depend on the ability of foreign visitors and investors being able to easily access Malta in a cost-effective way.
It doesn’t take much mathematical acumen to understand that any increase in aviation fuel as a result of a fuel tax will be a burden that will be passed on to the consumer. Can our tourism industry sustain the impact of a sharp increase in air fares to and from Malta? Will Malta remain an attractive jurisdiction for foreign investors who need to visit Malta multiple times each year due to their investments in the financial services industry or the iGaming industry?
Faced with such a menace to our most crucial industries and to our ability as a nation to explore the horizons beyond our shores, our government has quite literally slept at the wheel. While other nations are busy defending their national interest for any legislative initiative put forward by the European Union, our government is happy to sign away our interest and to allow the interests of other countries trample over our own.
It is disappointing that such a crucial initiative is being discussed with deep concern by all stakeholders while the government maintains an eery silence. Are we to interpret this silence as the government being in agreement with higher air fares to and from Malta despite the fact that air travel is Malta’s sole method of connectivity? Are we to interpret this silence as the government not being the least bit concerned that this tax will deal a huge blow to our economy?
We cannot and will not sit silently while Malta’s national interest is being trampled upon so flagrantly and our government, whose duty it is to ensure that this does not happen, continues to sleep at the wheel.
Adrian Delia is the Nationalist Party’s spokesperson on transport. Angelo Micallef is the mayor of Balzan.