EC President Urges Maltese Accession To European Union

by Robert Lee, Tax-News.com, London

25 April 2002

Following a meeting between the Maltese Prime Minister, Eddie Fenech Adami, and the Head of the European Commission, Romano Prodi, on Tuesday, the EC Chief has stressed his desire to see the jurisdiction accede to the European Union.

'From our side, we think it is very important to have Malta with us, while from the Maltese point of view I think it is much better to take a decision than to suffer the consequences because this decision is not taken,' he told a press conference earlier this week. However, Mr Prodi acknowledged that the Maltese political community is deeply polarised on the issue of EU entry, and said that he would not interfere in the country's decision.

This follows the revelation that, of all the nations seeking to particpate in the next accession, Malta has fallen behind, and has resolved just 21 of the issues under discussion with the European body.

Also speaking on Tuesday, the EU Commission negotiator for Malta, Arhi Palsuo, revealed that there are 30 aquis chapters to be closed by the end of this year, and warned that time could be running out for the low tax jurisdiction.

To make matters worse, the remaining chapters deal with difficult and politically sensitive issues such as competition policy, taxation, and customs union. However, in most cases it has already been agreed that there is to be a transition period following Maltese accession to the European Union, and the forthcoming negotiations will just focus on the length and scope of that transition.

At Tuesday's press conference, the Maltese Prime Minister reiterated his personal support for EU accession, stating that: 'I believe it is in the interest of Malta to be part of the EU and that is what pushes me to work in favour of EU accession.'

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