Malta To Benefit Soon From Fifth Financial Protocol With Italy

by Robert Lee, Tax-News.com, London

26 June 2003

The long awaited fifth financial protocol between Malta and Italy is nearing fruition as the measure reaches the Italian parliament for approval, diplomatic sources revealed to the Times of Malta this week.

The protocol, first signed last year, will allow the transfer of some Lm31 million from Italy to Malta over the next three years, and will add to the Lm80 million coming from EU accession funds to improve the island's administrative capacity in the initial stages of membership.

The parliamentary approval will be the final seal on a long and bureaucracy-riddled process for the protocol which has seen it batted around various Italian ministries for technical consultation and referred for cabinet approval. It was then passed on to the President's Office for signing before reaching the final parliamentary stage.

According to reports, the Maltese administration is pressing the Italian government to seek parliamentary approval before the summer recess.

The money is expected to be used to improve Malta's infrastructure in areas such as roads, the health service and maritime facilities. Italy's initial offer was Lm3 million per year for three years, but this was increased by the government when it decided to assist "rapid EU accession for Malta".

There has been a series of financial protocols between Malta and Italy stretching back 23 years, and totalling some Lm206 million, the majority of which has been spent on developing Maltese infrastructure.

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