Malta’s efforts to introduce anti-corruption reforms in response to the Daphne Caruana Galizia public inquiry have been “limited”. European Commission president Ursula von Der Leyen has told Times of Malta.

In an interview via e-mail, Von Der Leyen said that when it came to corruption, there had been “limited or no follow-up” to the inquiry board’s recommendations.

“It is important that the Maltese authorities ensure the necessary follow-up on those recommendations.”

The recommendations included outlawing “mafia-style association” and regulating contact between politicians and big business.

A bill by the Nationalist Party seeking to implement the anti-corruption recommendations was shot down by the government last year. The Opposition has since sought to reignite the bill.

Von Der Leyen acknowledged that on some of the inquiry’s other recommendations, the government has proposed reforms.

In January, the government appointed an expert group to propose reforms to media laws.

While declining to comment on ongoing judicial proceedings, Von Der Leyen emphasised how crucial it is that those responsible for the journalist’s assassination are brought to justice.

Pipe dreams

A decision to include the proposed Malta-Sicily gas pipeline in a list of projects eligible for EU funding hit strong resistance last year, over concerns that Yorgen Fenech, the man suspected of masterminding Caruana Galizia’s murder, could financially benefit from the deal.

Von Der Leyen said that while EU funding has been provided for the preparatory studies to the Melita project, no funding has yet been provided for the construction.

“The eligibility of the project to receive EU support and the actual financing of a project are two different procedures, carried out separately.”

Von Der Leyen said the Commission will ensure that any application for funding the project is fully compliant with EU financial rules, which exclude granting funding to persons or entities that have been convicted of a crime.

She said the Malta-Italy pipeline will replace the temporary floating LNG terminal currently used for gas import.

Let me be very clear: European values are not for sale

The terminal is operated by Electrogas, the company awarded the contract to construct and operate the gas-fired power station.

Former government officials Keith Schembri and Konrad Mizzi were last year banned from travelling to the United States over their “involvement in significant corruption” in connection with the Electrogas contract.

Although the pipeline will initially pump natural gas, a fossil fuel, to Malta, Energy Minister Miriam Dalli has assured the pipeline will be “hydrogen ready”.

Von Der Leyen welcomed the fact that Malta is still exploring ways to make the pipeline ready to channel hydrogen.

She acknowledged that hydrogen supply is a key consideration, which is why the preparation of the project will need to be accompanied by an assessment of the supply and demand for renewable or low-carbon hydrogen, to make sure it is viable.

The European Commission president said the EU is investing in renewables “like never before”, with a €300 billion plan to back it.

Azerbaijan calling

The European Commission has received major criticism for cosying up to Azerbaijan in a bid to wean Europe off Russian gas imports.

Azeri president Ilham Aliyev has long been associated with corruption and human rights abuses.

Von Der Leyen sidestepped these concerns when questioned by Times of Malta, insisting Azerbaijan is an important energy partner for the EU, with energy cooperation intensifying.

She said the memorandum of understanding on energy will double the country’s gas deliveries to Europe and lays the foundation for a long-term partnership on energy efficiency and clean energy.

In parallel, Von Der Leyen said the EU is negotiating a new comprehensive cooperation and partnership agreement with Azerbaijan, with political dialogue on respect for human rights and the rule of law being at the heart of the relationship.

“This new partnership agreement will also support Azerbaijan’s efforts to diversify its economy and create a conducive climate for business and foreign investment.

“It is important to create the right conditions for investor confidence. This includes greater participation of civil society and free and independent media.”

Those passport sales

The European Commission president has long criticised the sale of European passports to wealthy foreigners, with Malta in Von Der Leyen’s crosshairs.

According to a report by the Commission, passport sale schemes like the one operated by Malta pose money-laundering, tax evasion and organised crime risks to the entire EU.

Von Der Leyen made it clear that the Commission’s stance against such schemes remains unchanged.

“Let me be very clear: European values are not for sale. This is why the Commission is determined to act on investor citizenship schemes,” Von Der Leyen said of such schemes.

She said she welcomed the suspension of the passports programme for Russian and Belarusian citizens, calling it a “positive first step”.

“However, the scheme continues to operate for all other nationals and Malta has not expressed any intention to stop the scheme.

“Our infringement case is ongoing. We are finalising our assessment of the reply that we have received from the government and we will then decide on the next step.”

The government insists that it carries out strict due diligence checks on all passport applicants.

It has so far refused the Commission’s demands to halt the scheme, insisting the matter is up for Malta, not Brussels to decide.