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Malta and the EU Question: Interview with the Deputy Head of the Malta EU Information Centre


Q: What about tourism and the EU? Would full membership have much of an impact on tourism in Malta? Do you see tourism moving in certain directions?

A: Well, tourism in Malta, as you know, is one of our biggest economic factors, you know? It's very important for us. And as maybe you know, the EU does not have any laws on tourism, but there are things like, for example, which do affect tourism. Like, for example, the British government has certain taxes for certain destinations within the EU and higher taxes for destinations outside the EU. And the British market is an important market for Malta. So there are things which will affect definitely tourism: higher standards of living, higher environmental awareness would also encourage more tourists to come. So there are people who say that, yes, tourism would benefit from joining the EU. But there's still something in the sense that there's people who think one way, people who think another. There are people who, for example, are scared that because of …, a lot of Sicilians might come to Malta and work in the tourist industry, for example, you know, taking jobs away from the Maltese. Whether this will happen or not, it will probably happen at one level or another, but whether it will be such a wide-ranging cataclysmic event, it is something that, you know, even if you take the amount of people who actually move from one place to another within the EU, it is something very very small. On this point the Maltese government has actually negotiated a seven-year arrangement so that the Maltese government will be able to stop EU citizens from working in certain areas, in certain labour .., in certain markets which are very much like what Germany has done with eastern European countries, not allowing them for seven years to be able to take jobs. This is simply a precautionary measure that would sort of buy some time, so that you'd be able to actually assess the amount of people who'd actually be travelling to come to work to Malta.

Q And as far as residence is concerned, would laws be relaxed for people coming to live in Malta under EU membership? Do you see certain dangers there of what is already a fairly crowded island becoming more crowded?

A There was one negotiating point which I think was the highest priority of the Maltese government. This was EU citizens buying property in Malta. The level of property…, Malta's already highly urbanised, there's very little agricultural land left, compared to other EU states. It is the most densely populated country in the world, if not in Europe. Definitely in Europe, but if I'm not mistaken, if it's not the first, it's either the second or the third. Only ………??? and Hong Kong are more densely populated than Malta. So there is a big problem here. The prices of property have been going up tremendously. Maltese property compares very much like central London or Paris, you know, we're talking really high property markets. So the idea of EU citizens being able to buy as much property as they want was always a bit of a problem. In Malta we've had a law since 1974 which states that foreign people are only able to buy a holiday home in Malta, and that they can buy only one holiday home. They have have to apply for a permit which is given, it's never refused, but as long as the property you're buying is more than certain thresholds which the government sets every now and then. So at the moment, for example, it's 30,000 Maltese lire, that's around 70-80,000 euros for an apartment, ok? Which is by today's standards a bit low, because most apartments cost already more than that. So there's this law, which in reality has been practically adopted by the EU for Malta, even after accession. So this will remain. Any EU citizen…

Q And that's successful in keeping numbers down?

A Yes, yes, because it does not allow EU citizens or foreigners of any country to buy more than one property. The only exception is that, if Malta joins the European Union, any new citizen coming to Malta to live here, you know, not just as a holiday home where he comes three months a year, you know, in summer when the weather's very nice, but coming to live here, after five years living here he will have the option of buying whatever property he feels like. Because then he'll be living here for five years and he'll be practically like a Maltese. But this is also…, this arrangement also does not allow people to sell property at international market prices, so it tries to keep as much as possible the price down. Obviously, the prices will never go down, because the amount of land is very limited, and simple economics - supply and demand - will obviously make it very difficult for Maltese prices in property to go down. There's a big demand and very limited supply.

Q Ok, I think that answers the most…, unless you can think of any other important things that need to be…

A There are certainly a number of negotiating issues that are still being asked…
There is, for example, environment. We have had very limited environmental legislation in Malta over the past years, but now obviously with EU accession we have to adopt the huge number of laws that there are on environment. It is a big problem for Malta to do so. Why? Because it involves a lot which the Maltese government cannot take up on its own, so there will be obviously aid from the EU to be able to take up the environment legislation. For example, one of our biggest environmental problems here is, being such a small country, waste, garbage. That has become a monster, you know. It went completely out of control. And there is no way that the Maltese government on his own can actually clear that up, because it costs something like 80 million, which is a big portion of the Maltese budget, you know, so…

Q This is maybe where you could expect a certain degree of help from the EU.

A Certainly, this is where help is to be expected. Another problem is sewage treatment prior to disposing in the sea, you know, there are some problems there. This is also another area where help, even technical help, which a small country like ours sometimes lacks in technical people, you know, trying to have real technical people on certain aspects, you cannot expect a small country like ours to have all the technical expertise that is required in all areas of the legislation. There is obviously agriculture, which is being discussed - I already mentioned it. And then there are a number of issues like, for example, taxation. Maltese VAT, the VAT, is not applicable on food and medicinals right now, the way it is. The Maltese government is actually requesting that this arrangement continues after accession. Certain countries do have this arrangement, like Britain and Ireland, but the EU does not really want new countries to keep on with this arrangement. This is also another negotiating point that is being negotiated. And there are a number of small issues. One important issue for Malta: we are very proud of our language. The Maltese language is something…, and rightly so, because we are such a small country and to have our own language, whereas big countries do not, you know. And for us it is a very important point that the Maltese language will be an official language of the EU, and this week this has finally been accepted. So we will be very proud to see the Maltese language being spoken in the room, comparing it with German and English, which are spoken, you know, by such large countries. And for Malta, you know, with a third of a million people, we do have our own language and we're very proud of that. So that was also an issue which has been resolved quite successfully.

Q So that might win a few votes in favour of a EU…

A Well, definitely. I'm sure that that will happen. But more than that, there's a sense of the EU really accepting Malta for what Malta is. There is a sense that it's difficult for certain people to understand - why would the EU, such a big, you know, trading arrangement, why would it want Malta, you know? We're so little, we're so tiny. What influence could we have? And the fact that at every point Maltese special needs are being recognised by the EU does leave, yes, a sense of well-being, you know, in the country.

Q You don't feel you're being swallowed up by…

A Exactly, exactly. Just have to accept everything and lump it, you know. We all speak English on Malta, and maybe English would have been an easier way out for the EU. But no, the fact that Maltese, being our national language, is being taken up and it will be there, spoken with all the…, you know, it's nice to see - I've received the first letter from the G Agriculture in Maltese. And they sent it to Malta, to the Maltese government - it was all in Maltese. And this is nice to look at it and say "This is in Maltese", you know? They actually went to the trouble to make it as easy for us as possible. So it is definitely a plus.