IoD Says EU Good For Malta As Membership Debate Rages On

by Robert Lee, Tax-News.com, London

06 March 2003

The Maltese Institute of Directors (IoD) stepped into the debate over EU membership this week claiming that the move will be positive for the island's economy.

Speaking to the Maltese news service Independent Online, the Institute's chairman, James Satariano, said Malta's enrolment as a full member of the EU would bring in more investment and it would be in the country's best interest to join. "This would allow the commercial area and entrepreneurs in particular to realise the regional opportunities within a more stable and well-regulated environment, attract new investment, position Malta as a country with European Business standards and drive the basic positioning of Maltese business as a regional facilitator," Satariano said.

Implying that Malta's economic interests would be damaged by not participating as a full member of the EU, Satariano went on to add: "A small state such as Malta cannot remain outside the EU in a global economy that rests on alliances between states to create significant trading blocks". The IoD represents the interests of many sectors of the Maltese economy from manufacturing to finance, services, retail and the media. The announcement follows on the heels of the Malta Institute of Taxation's public declaration of support for EU membership.

However, many interest groups on the island do not share the IoD's optimistic view, not least the General Worker's Union. GWU Secretary general, Tony Zarb, has been very vocal in his anti European stance. Speaking to a demonstration, the Independent Online reported, Zarb said of Saturday's referendum that: "Whatever the result, the GWU will continue to say that the EU is not in your best interest." He went on to warn voters "your choice is irreversible. You have one chance. The GWU will continue to defend your interests."

Earlier in the year, the Maltese Labour leader Alfred Sant challenged the government to reveal the true cost of EU membership, and cited many instances where Maltese business and workers would be adversely affected by potentially large increases in taxation brought about by EU rules. Zarb also used this example, telling the crowd how EU membership would have a negative impact for firms in many sectors including port and airport workers, Air Malta, tourism, Water Services Corporation, civil servants and manufacturing generally. He warned that this was by no means an exhaustive list.

The president of the GWU, Salvu Sammut, also addressed the demonstration, and painted a very gloomy picture of the aftermath of EU membership, warning "If we join now we will be committing suicide. The EU is not good for us. We will see people begging for money near ATMs and people sleeping in cardboard boxes."

Confirming that this is likely to remain a very emotive issue whatever the result of the referendum, Sammut added "In the 1970s the GWU and the Labour government improved the working conditions of the Maltese and no one will dare take them away from us".

Recommended