Malta's Prime Minister Speaks On EU Accession, Economic Prospects

by Robert Lee, Tax-News.com, London

19 July 2002

In an interview with the Malta Business Weekly earlier this week, Malta's Prime Minister, Dr Eddie Fenech Adami responded to opposition criticisms with regard to the EU accession process, and revealed that the government is largely 'on track' to meet its economic targets.

Dr Adami had previously denied suggestions - made to the Malta Independent newspaper by 'unnamed sources close to the EU accession commission' - that the jurisdiction is lagging behind in negotiations with the European Union.

'There are actually seven pending chapters,' he told the business weekly, elaborating on his earlier remarks. 'Of these, two - the agricultural and financial chapters - will only be concluded with all countries towards the end of the year...The Taxation chapter has been concluded except for the zero rating of VAT on a few items including food and pharmaceuticals.'

However, he went on to explain that: 'Clearly, we cannot close a chapter if there is even one item pending. The government remains committed to negotiating the best possible deal for Malta, and I have no doubt that the remaining items will be concluded in good time.'

During his interview with the MBW, the Prime Minister also dismissed suggestions that the Maltese economy is in worse shape than the government is prepared to admit.

'The economy as a whole is doing well in a very unsettled international climate...Other than for the negative position being taken by the opposition, I think there is agreement that the economy is performing, although there are some that are less able to compete in today's environment,' he told the newspaper.

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