Europaudvalget 2003-04
EUU Alm.del Bilag 175
Offentligt
Comprehensive monitoring report
on
Malta’s
preparations for membership
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A.
B.
INTRODUCTION ................................................................................................................................ 3
ECONOMIC ISSUES ........................................................................................................................... 5
1.
Economic developments ........................................................................................................... 5
2.
Implementation of recommendations for improvement ............................................................ 7
COMMITMENTS AND REQUIREMENTS ARISING FROM THE ACCESSION
NEGOTIATIONS ............................................................................................................................... 10
1.
Administrative and judicial capacity....................................................................................... 12
Public administration............................................................................................................... 12
The judicial system.................................................................................................................. 13
Anti-corruption measures........................................................................................................ 14
Translation of the acquis into Maltese .................................................................................... 15
2.
The chapters of the acquis....................................................................................................... 16
Chapter 1: Free movement of goods....................................................................... 16
Chapter 2: Free movement of persons .................................................................... 18
Chapter 3: Freedom to provide services ................................................................. 19
Chapter 4: Free movement of capital...................................................................... 20
Chapter 5: Company law ........................................................................................ 21
Chapter 6: Competition Policy ............................................................................... 22
Chapter 7: Agriculture ............................................................................................ 23
Chapter 8: Fisheries ................................................................................................ 27
Chapter 9: Transport policy.................................................................................... 28
Chapter 10: Taxation .............................................................................................. 30
Chapter 11: Economic and monetary union ........................................................... 32
Chapter 12: Statistics .............................................................................................. 32
Chapter 13: Social policy and employment............................................................ 32
Chapter 14: Energy................................................................................................. 34
Chapter 15: Industrial policy .................................................................................. 35
Chapter 16: Small and Medium-sized Enterprises ................................................. 36
Chapter 17: Science and research ........................................................................... 36
Chapter 18: Education and training ........................................................................ 36
Chapter 19: Telecommunications and information technologies ........................... 37
Chapter 20: Culture and audio-visual policy .......................................................... 38
Chapter 21: Regional policy and co-ordination of structural instruments.............. 38
Chapter 22: Environment........................................................................................ 40
Chapter 23: Consumer and health protection ......................................................... 42
Chapter 24: Justice and home affairs...................................................................... 43
Chapter 25: Customs union .................................................................................... 47
Chapter 26: External relations ................................................................................ 48
Chapter 27: Common foreign and security policy.................................................. 49
Chapter 28: Financial control ................................................................................. 49
Chapter 29: Financial and budgetary provisions .................................................... 50
CONCLUSION................................................................................................................................... 52
C.
D.
STATISTICAL ANNEX.............................................................................................................................. 54
2
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A.
I
NTRODUCTION
The accession negotiations with Malta were successfully concluded on 13 December
2002 and the Treaty of Accession was signed on 16 April 2003. In an accession
referendum held on 8 March 2003, a majority of 53.65% of Maltese voters expressed
their support for membership of the European Union. Following ratification of the Treaty
of Accession, Malta will join the EU on 1 May 2004.
In its Strategy Paper “Towards the enlarged Union”, which accompanied the 2002
Regular Reports, the Commission stated that:
“Acceding countries need to implement the acquis by the date of accession, except in
cases where transitional arrangements have been agreed. Commitments undertaken
in the negotiations must be fully met before accession. The Regular Reports point to
a number of areas where further improvements need to be made in the context of the
political and economic criteria and in relationship to the adoption, implementation
and enforcement of the acquis. These should be vigorously pursued. In order to
analyse progress and to facilitate successful membership of the European Union, the
Commission will regularly monitor this and report to Council. The Commission will
produce six months before the envisaged date of accession a comprehensive
monitoring report for the Council and the European Parliament.”
The Copenhagen European Council in December 2002 concluded that:
“Monitoring up to accession of the commitments undertaken will give further
guidance to the acceding states in their efforts to assume responsibilities of
membership and will give the necessary assurance to current Member States.”
and the Thessaloniki European Council in June 2003 stated that:
“…the ten acceding States are encouraged to keep up their efforts so that they are
fully prepared to assume the obligations of membership by accession. This also
includes the necessary translation of the Community acquis. With a view to making a
success of enlargement, the monitoring of these preparations has been intensified on
the basis of reports submitted regularly by the Commission.”
As the accession date of 1 May 2004 draws closer, this report presents a comprehensive
state of play of the findings of the regular monitoring carried out by the Commission,
building upon the findings of the 2002 Regular Report for Malta. The report contains two
main parts.
The first part deals with economic issues. It describes briefly economic developments in
Malta, and then goes on to assess the implementation of the necessary economic reforms
in the areas highlighted in the conclusions of the 2002 Regular Report for Malta as being
in need of further improvements.
The second part gives an overview of where Malta stands in implementing all
commitments and requirements arising from the accession negotiations for each
acquis
chapter, both in terms of legislation and from the perspective of implementing structures,
including administrative capacity and enforcement. Considering their importance for the
implementation and enforcement of the
acquis,
the overall state of readiness of the public
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administration and the judicial system, and the development of effective anti-corruption
measures are assessed in an introductory section to this part.
This report reflects the situation at the end of September 2003. It records decisions
actually taken, legislation actually adopted, measures actually implemented and
structures actually in place and functioning by that date.
For each chapter of the
acquis,
this report identifies the areas in which Malta is expected
to be, or is already, in a position to implement the acquis and the areas where further
action is still needed. Where relevant, the report also points out issues where lagging or
deficient preparations are a cause of serious concern. This assessment starts from the
premise that Malta must be fully prepared for membership from the date of accession. In
cases where transitional arrangements have been agreed in the accession negotiations,
their effect on Malta’s obligations is duly reflected in the assessment.
Numerous sources of information have been used to compile this report. Malta was
invited to provide information on its state of preparedness. The Report also draws on
information provided by Malta within the framework of the Association Agreement and
the accession negotiations, as well as on peer reviews that have taken place to assess its
administrative capacity in specific areas. Council deliberations and European Parliament
reports and resolutions have been taken into account in drafting it.
1
Where relevant, the
Commission has also drawn on assessments made by various international organisations
such as the Council of Europe, the OSCE and the international financial institutions and
by non-governmental organisations.
1
For the European Parliament the rapporteur is Mrs Ursula Stenzel.
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B.
E
CONOMIC ISSUES
In its 2002 Regular Report, the Commission concluded that
“Malta is a functioning Market economy and it should be able to cope with
competitive pressure and market forces within the Union.
Further improvements can be made to macroeconomic management by reducing the
general government deficit and reforming public expenditure to ensure medium-term
fiscal sustainability. More progress can be made on restructuring large loss-making
public enterprises and public utilities. Attention should be paid to the supervision of
non-performing loans in the banking sector.”
The principal purpose of this part of the Comprehensive Monitoring Report is to assess
the implementation of recommendations for improvements in the areas identified in last
year’s Regular Report. The focus is on the change since last year and not on the overall
degree of functioning of the market economy or degree of competitiveness. The
assessment can be found in Section 2. Section 1 briefly describes recent economic
developments in Malta including the continuation of the reform path since last year’s
Report.
1.
Economic developments
Economic activity remained weak, affected by low external demand and the downturn in
the tourism sector.
Although GDP growth resumed in 2002, it remained below potential
at 1.2%. Output growth was primarily driven by higher private and public consumption.
A contraction in fixed capital formation and a rundown in inventories were the main
factors responsible for low growth. Despite a sharp increase in investment and
government consumption in the first quarter of 2003, GDP fell by 1.9% year on year,
largely due to a strong increase in imports that contrasted with slightly negative export
growth. The twelve month average rate of inflation decelerated to 2.2% in 2002.
Although the Maltese lira depreciated against the euro, the impact on import prices was
moderate, influenced by modest domestic demand. The unemployment rate increased to
7.4% in December 2002. The employment rate is relatively low at 55.2 % in 2002.
Developments in the private sector largely explain the increase in employment, as low
activity in tourism and industrial restructuring in manufacturing accounted for significant
job losses (see also the Joint Assessment of Employment Policy Priorities and
subsequent progress reports). The current account deficit is estimated to decrease slightly
to 3.9% of GDP in 2002. An improvement in the visible trade deficit, to which lower
imports of capital goods largely contributed, compensated for a deterioration of the
services surplus caused by a fall in tourist arrivals of 3.9% and transport activity. The
general government deficit decreased to 6.2% of GDP in 2002 from 6.8% in 2001,
remaining well above the levels previously estimated by the government. Interest rates
were cut in December 2002 and May and June 2003, mirroring lower interest rates in
Malta’s major trading partners. Growth below potential, lower inflation, and the lack of
pressures on foreign reserves were decisive for the interest rate cuts.
Main Economic Trends
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Malta
Real GDP growth rate
Inflation rate
a
- annual average
- December-on-
December
d
Unemployment rate
- LFS definition
General government
budget balance
Current account balance
per cent
per cent
per cent
1998
3.4
3.7
1999
4.1
2.3
2000
6.4
3.0
2001
-1.2
2.5 p
2002
1.2
2.2 p
d
2003
latest
-1.9 Q1
:
:
per cent
per cent of
GDP
per cent of
GDP
million
ECU/Euro
Per cent
of exports
of goods
and
services
million
ECU/Euro
c
:
:
-8.2
-3.4
:
7.0
-7.0
-14.8
:
6.7
-6.8
-4.6
:
7.4
-6.2 p
-3.9 p
-159
b
:
1.1 July
-10.8
-6.3
Gross foreign debt of the
whole economy
- debt export ratio
-194
105.2
-116
118.5
-576
156.1
-190
155.0
:
2 913
7.7
3 477
22.6
6 195
17.3
5 492
8.5
:
:
Foreign direct investment
in flow
- balance of payments
data
Per cent
of GDP
674
350
:
:
million
238
770
ECU/Euro
Sources: Eurostat. National sources. OECD external Debt Statistics
a
b
Index not yet harmonised.
Source: Website of the National Bank.
c
In order to reflect the importance banking activity, Eurostat has deducted from the series external liabilities of the
banking sector held in the form of loans, currency and deposits.
d
Retail Price Index. Source : Website of Statistical Office
P= provisional figures
Progress with structural reforms has been mixed.
The privatisation process resumed in
2002 with a sale of shares of Maltapost and Malta International Airport. On the other
hand, a number of technical and economic reasons have delayed the privatisation of the
Freeport and Air Malta. The plan for dismantling import levies on manufactured goods
proceeded as expected, with the final stage accomplished in January 2003. A new
programme for dismantling remaining levies on agricultural and food products has been
established. Early retirement schemes have been introduced as a major step in the
restructuring process of the shipyards and Maltacom. It is important to continue the
review of tax and benefit systems to enhance incentives for people to seek job
opportunities and to increase labour supply in particular for women and older workers.
Further efforts should be made to promote human capital investments and life long
learning to make the labour force more adaptable and limit the use of early retirement
schemes. The liberalisation of the telecommunications sector has proceeded as planned,
reaching its final phase with the liberalisation of international calls and fixed telephony
services in January 2003. A plan for reforming the energy sector has been drawn up and
should form the basis for introducing competition in the market. The introduction of a
price mechanism to gradually link fuel prices to international price developments is
progressing as expected. Positive steps have been taken to adapt the price mechanisms of
public utilities so as to better reflect production and investment costs, but important
problems related to low labour productivity and lack of competition remain. In general,
the restructuring process has advanced faster in the private sector, particularly in the least
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efficient sectors following the removal of import levies. The lack of in-depth reforms to
guarantee the sustainability of the public finances is a matter of concern. Although there
is general consensus on the need to reform the welfare system, long-awaited pension
reform continues to be delayed.
Main Indicators of Economic Structure in 2002
Population (average)
GDP per head
a
Thousand
PPS
Per cent of EU average
397.3 c
:
2.8
2.2
d
Share of agriculture in:
- gross value added
- employment
Gross fixed capital formation/GDP
Gross foreign debt of the whole
d
economy/GDP
Exports of goods & services/GDP
Stock of foreign direct investment
Long term unemployment rate
Source: Eurostat
a
b
Figures have been calculated using the population figures from National Accounts, which may differ from those used in demographic statistics.
Agriculture, hunting, forestry and fishing.
e
b
Per Cent
Per Cent
Per Cent
Per Cent
Per Cent
Million Euro
Euro per head
Per Cent of labour force
23.1
135.8
85.0
2550
6418
:
f
c Total Population (Maltese & Foreigners).
d Data refer to 2001.
e Data refer to 2000.
f in order to reflect the importance of international banking activity, Eurostat has deducted from
the series external liabilities of the banking sector held in the form of loans, currency and deposits.
2.
Implementation of recommendations for improvement
Very substantial efforts are necessary to guarantee the sustainability of
public finances
in the medium term.
Although the general government deficit decreased to 6.2% of GDP
in 2002, it remained well above the level estimated by the government in 2002. While
revenues were positively affected by taxes and fees linked to the privatisation of Malta
International Airport, current expenditure increased significantly on account of sizeable
spending in health, social security benefits, the shipyards’ early retirement schemes and
agricultural subsidies. In addition, the increasing general government debt, which
reached 66.6% of GDP at the end of 2002, led to significantly higher interest payments.
Such expenditure increases, together with lower than expected GDP growth, were the
leading factors in a slower than expected reduction of the deficit. Nevertheless, the
deficit reduction appears to have been facilitated by the fact that the government
transferred some expenditure items from 2002 into 2003. In order to counterbalance the
impact, government departments were required to reduce their expenses significantly in
2003 but it remains to be seen whether such a measure will be effective. Developments in
the period January-July 2003 are very disappointing, as government total expenditure
increased by 8.2% year-on- year while current revenues decreased by 4.3%. Higher
capital and current expenditure were largely influenced by the construction of the new
hospital and the corresponding equipment supply, but other categories of expenditure
also increased significantly, such as subsidies for agriculture support, social security
contributions, civil service wages and contributions to government entities. Much needed
in-depth reforms which allow for long-term savings are lacking. Achieving fiscal
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consolidation is necessary to face critical challenges ahead, as the public finances are
expected to remain significantly constrained by demographic developments and
investment needs required to comply with EU standards and catching up with EU income
per capita levels. Furthermore, some of the necessary reforms to guarantee the
sustainability of the public finances will entail initial costs for the budget, e.g. pension
reform or the implementation of early retirement schemes. More profound reforms in
large loss-making public enterprises and more control of government expenditure are
necessary to decrease the deficit
Although restructuring of
public enterprises
is under way, more far-reaching measures
need to be implemented, leading to higher productive efficiency and supporting fiscal
consolidation.
The privatisation process resumed in 2002 with the sale of 35% of
Maltapost and the sale of Malta International Airport. Nevertheless, other pending
transactions, such as the Freeport and Air Malta, which are expected to have a larger
impact on overall economic efficiency and the fiscal balance, have been delayed. The
lack of competition in the port is perceived as an important problem by the private sector,
as the very high fees applied hinder the competitiveness of local enterprises. Progress
continues in introducing more cost-recovery mechanisms in services provided by public
utilities, such as the gradual linking of fuel prices to international prices over a period of
three and a half years. The system is setting the grounds for the energy state monopoly to
better reflect the cost of fuel, while it reduces the negative effects that higher
international prices used to have in the government budget. Prices of electricity and
water are also in the process of being adjusted to better reflect production costs, although
further adjustments are necessary to achieve cost-recovery mechanisms, especially to
cover the high infrastructure investment needs in these areas. Overall, the ongoing
reforms in the public enterprise sector should contribute to increase productive efficiency
in the medium term, but very substantial government subsidies continue to be directed to
public enterprises, with the consequent negative repercussion in public finances. In
general, there is a need to deal more decisively with the real reasons that compel those
companies to run losses. While progress is ongoing in adapting prices to better reflect
production and investment costs, important problems such as low labour productivity and
the lack of competition in public enterprises could be addressed more severely.
The level of
non-performing loans
in the banking sector remains high, although several
steps have been taken to improve supervision and credit assessment.
The ratio of non-
performing loans to total loans decreased to 15.3% in March 2003, from close to 18% in
2002. Several factors accounted for the improvement. In 2002, the implementation by
banks of new stricter legislation on provisioning and classification of bad loans implied
an increase in the proportion of non-performing loans over total loans. Once this
statistical effect was fully reflected in bank portfolios, a tightening of risk management
controls contributed to reduce the percentage of non-performing loans. The widening of
the loan portfolio base due to the inclusion of a new credit institution in the local banking
sector in March 2003, which had a low proportion of non-performing loans in its
portfolio, contributed further to the improvement. However, the reduction in non-
performing loans was also due to the write-off of a number of bad loans, as some of them
were considered as irrecoverable. Some steps have been taken to improve financial
supervision. The creation of the Financial Stability Division in 2002 is seen as a positive
development to guarantee financial stability. During 2002, the Malta Financial Services
Authority published several notices giving guidelines on effective management of credit
and interest rate risk by credit institutions, providing a valuable instrument for risk
assessment. Despite these initiatives, the level of non-performing loans remains high and
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the weak economic environment and increasing competitive pressures from abroad
emphasise the need to continue with the progress towards tighter control and supervision
mechanisms in the financial sector.
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C.
C
OMMITMENTS
NEGOTIATIONS
AND
REQUIREMENTS
ARISING
FROM
THE
ACCESSION
As we approach the actual date of accession and the entry into force of the mutual rights
and obligations enshrined in the Treaty of Accession, it is necessary to focus efforts on
ensuring that Malta is fully prepared in all areas of the
acquis
from the start of its
membership. In other words, Malta must meet its commitments and requirements arising
from the accession negotiations.
In the 2002 Regular Report on Malta, the Commission found that:
“Malta is generally meeting the commitments it has made in the negotiations.
However delays have occurred in the areas of free movement of persons (citizens’
rights and free movement of workers), fisheries (vessel monitoring, market policy),
agriculture (establishment of the Paying Agency), transport (road and maritime
transport) and social policy (labour law and gender equality). These issues need to
be addressed.
Bearing in mind the progress achieved since the 1999 update of the Opinion, the
level of alignment and administrative capacity that Malta has achieved at this point
in time, and its track record in implementing the commitments it has made in the
negotiations, the Commission considers that Malta will be able to assume the
obligations of membership in accordance with the envisaged timeframe. In the
period leading up to accession, Malta needs to continue its preparations, in line with
the commitments it has made in the accession negotiations.”
As regards the administrative capacity to implement the acquis, the overall findings were
as follows:
“Overall, provided Malta implements its plans to strengthen its administrative
capacity as mentioned above, it should be able to ensure a reliable enforcement of
the acquis and to participate adequately in the Union’s policy-making processes.
Malta’s capacity to ensure sound, efficient and controllable management of EC
funds is generally good and should be fully adequate once it has finalised its plans
regarding the body in charge of fight against fraud and protection of EC financial
interests.”
As part of its continuous monitoring, the Commission services addressed two letters to
Malta in 2003 expressing concern over its preparedness in the field of VAT legislation
within the taxation chapter, the amendment of the Business Promotion Act, the extension
of the scope of the Competition Act to include public undertakings and the
implementation of the restructuring plan for the ship repair and shipbuilding industry
within the competition chapter, and calling for urgent action to remedy these
shortcomings.
In order to give further guidance to Malta in its preparation efforts and to give the
necessary assurance to current Member States and other future Member States, this part
of the comprehensive monitoring report, in Section 2, gives an overview of where Malta
currently stands in implementing all commitments and requirements arising from the
accession negotiations for each of the 29 chapters of the acquis. It covers the whole body
of the acquis, on a chapter-by-chapter basis, both in terms of legislation and from the
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perspective of implementing structures, including administrative capacity and
enforcement.
The principal commitment undertaken by Malta in the accession negotiations is to be
fully prepared for membership in all areas by the date of accession. In a number of areas,
however, commitments were made to put in place and implement the acquis according to
specific timetables even before accession. This report examines the extent to which these
commitments have been respected, and where delays have occurred, but the principal
focus of the assessment remains the requirement that Malta must be fully prepared as
from accession. Naturally, in cases where transitional arrangements have been agreed,
their effect on Malta’s obligations is duly reflected in the assessment. On the other hand,
it should be underlined that, in order for Malta to make effective use of its eligibility for
Community structural funds from 1 January 2004, the relevant acquis in areas such as
public procurement, state aid or environmental protection will need to be fully respected
from 1 January 2004 in relation to the implementation of structural funds actions
2
.
For each chapter, a conclusion is provided, which is structured in the following way.
Firstly,
it identifies those areas where Malta is essentially meeting the commitments and
requirements arising from the accession negotiations and is expected to be, or is already,
in a position to implement the acquis from accession. This does not exclude the
possibility that certain actions are still to be taken, but these should under foreseeable
circumstances not pose particular difficulties.
In a
second
paragraph, the assessment identifies any areas where important further action
is still needed in order to complete preparations for membership. In some cases these
preparations are ongoing, but enhanced efforts or quicker progress may be called for.
These are issues which can still be remedied taking into account the accession date of 1
May 2004 but which require the special attention of the authorities.
Thirdly,
where relevant, the assessment also identifies issues that are of serious concern.
These are areas where serious shortcomings exist which are likely to persist after
accession unless immediate remedial action is taken. These issues require the urgent
attention of the authorities. In view of their importance for the implementation and
enforcement of the
acquis,
the
overall
state of readiness of the public administration and
the judicial system, and the development of effective anti-corruption measures, together
with the question of the translation of the acquis into Maltese, are evaluated in a separate
Section 1.
2
See also the Commission Communication on the implementation of commitments undertaken by the
acceding countries in the context of accession negotiations on Chapter 21 - Regional policy and
coordination of structural instuments, 16 July 2003 (COM(2003) 433 final).
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1.
Administrative and judicial capacity
Public administration
The Maltese constitution provides for an independent Public Service Commission (PSC)
to supervise the public service. Its seven members are appointed by the president, acting
in accordance with the advice of the Prime Minister after he has consulted with the
Leader of the Opposition. The PSC makes recommendations to the Prime Minister on the
appointment, promotion or removal of civil servants. The functioning of the PSC and the
recruitment and promotion procedures are regulated by law. The law provides for open
and competitive selection of public servants. There are clear recruitment, career and
salary structures in the public service. However there are autonomous agencies or
authorities, some of which have been set up in relation with the enforcement of the
acquis,
which have different salary structures.
Malta has continued to implement change initiatives to reform its public service, with the
aim to offer better value for money and deliver better quality services. It has also
continued to strengthen its administration to meet the requirements of membership.
The main initiatives taken are a delegation of management powers in the field of human
resource management together with a results-oriented employee appraisal system, a
quality service charter initiative and an ambitious programme of electronic government.
In addition public-private partnerships have been initiated to ensure a more effective use
of the resources available in the public service.
While progress has been made in all these different areas, it is in the field of e-
government that it has been the most noticeable. The government has launched a new
government customer care portal system, whereby Maltese citizens can submit enquiries,
suggestions and complaints to the government. The system was selected by the Council
of Europe as a best practice model for the improvement of services. The first public
internet access point was launched at the end of March in Valletta, with 100 more
planned to be set up in the coming months. The Internet access point provides free access
to a number of sites including e-government. An initiative called M-government was
launched at the beginning of April to provide government services via mobile phone.
The Performance Management Programme, a results-oriented employee appraisal system
that applies to staff below senior management level, has been further developed. Senior
managers are also accountable for results and can be removed from their post if they fail
to deliver. More delegation of management powers has taken place, particularly in the
field of human resource management.
The first public-private partnership scheme was announced in November 2002. 301
workers from the Urban and Rural Landscape section of the Agriculture Department
have been seconded to a private company for that purpose.
It should be noted however that the significant progress achieved through these
initiatives concerns a limited part of the Maltese administration and much remains to be
done to further improve the effectiveness of the Maltese public administration as a
whole.
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Transparency and accountability are enhanced by the presence of independent and
effective internal and external audit systems (see
also Chapter 28 - Financial control)
and by the existence of an Ombudsman.
Both the National Audit Office (external audit body accountable to the parliament) and
the Internal Audit and Investigation Directorate (internal audit structure reporting to the
Cabinet office) have been consistently strengthened over the past years and appear able
to fulfil their mission.
The Ombudsman, established in 1995, acts to protect the rights of individuals in their
dealings with the public service, to recommend appropriate redress where this is found to
be justified, and to promote good governance and high administrative standards. The
Ombudsman deals primarily with complaints received from citizens, but he also has the
right to investigate matters on his own initiative without receiving a formal complaint.
He is appointed by a two-thirds majority in Parliament, which guarantees independence.
In 2002 the Ombudsman received 673 written complaints for investigation and 352
enquiries. A total of 719 cases were concluded including 374, which had required a full
investigation and a report. There are currently 122 cases pending. The Ombudsman also
carried out three investigations on his own initiative. While the Ombudsman’s work
appears to be largely satisfactory, more attention to this important institution in the
parliament would help enhance its status and its effectiveness.
The latest round of local council elections were held in March 2003 in 23 localities
together with the referendum on EU membership, with a record turnout of 88% linked to
the high turnout for the referendum. Although the local councils instituted in 1993 have
limited powers, considerable progress has been achieved in a short period in asserting
their role, as shown by the continuously increasing turnout at local elections. There is a
Ministry for Gozo, which is responsible for the implementation in Gozo of all policies
and projects decided by the Government.
The judicial system
The Judicial system in Malta comprises Inferior Courts, Civil and Criminal Courts of
Appeal, and a Constitutional Court. There is a legal aid scheme offered to citizens
lacking the means to afford legal defence.
The principle of the separation of powers is applied in Malta. Members of the judiciary
are independent of the executive. According to the Constitution, judges and magistrates
are appointed by the President upon the advice of the Prime Minister. They may not be
removed from office, except by the President upon request by the House of
Representatives supported by a two-thirds majority of its members. Consideration could
however be given to the possibility of further improving the objectivity of the
appointment procedure, which, in the current situation, is controlled by political bodies.
The reform of the judicial system has improved to some extent the situation regarding the
backlog of cases. It is based on a strategy to tackle the backlog of pending civil court
cases, the main planks of which are an increase in court fees and a wider remit for the
Small Claims Tribunal. More efficient information technology tools have also been
introduced for the administration of the judicial system. The reform has been partially
successful. The statistical report on lawsuits shows a drop in the number of pending civil
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cases from around 16 000 cases in December 2000 to 13 000 cases in May 2003, with a
slower progress in 2002.
The improvement seems to be largely due to a shift of cases from the Civil and
Magistrates' Court to the Small Claims Tribunal. Following the extension of the
Tribunal's remit, particularly in the financial field, its pending caseload has increased
from 1 296 cases in December 2000 to 1 845 cases in May 2003, which offsets the
reduction of the backlog at the Civil and Magistrates' Court. Also the backlog of criminal
legal actions in courts of all levels in Malta has continued to rise.
A series of training sessions and seminars have been delivered to members of the
judiciary both on EU law and on case management. Training has also been provided to
court employees on case management and information technology tools. A training
academy, set up in April 2002, started training activities in June 2002. It provided
training courses on a variety of topics like management, legal and practical aspects of
court staff, and recent amendments to legislation.
Anti-corruption measures
Only a few cases of alleged bribery have been brought to court in Malta, although some
of them have been serious. However the public perception is that corruption is more
widespread than these few cases would show. Indeed, a recent corruption case, which led
to the resignation of a chief justice and a judge has affected the way in which citizens
perceive the legal system and could be an opportunity for the Government to develop an
efficient national strategy for the fight against corruption.
Malta does not have a specific anti-corruption programme, and there have been few
developments in the fight against corruption. Recent events include the entry into force
of legislation introducing a right to claim compensation for damages caused by
corruption and the effective start of the Public Contracts Appeals Board.
This body examined its first case in June 2003, however it still needs to be strengthened
and its procedures need to be streamlined. Malta urgently needs to align its procurement
regulations with the
acquis
(see
details under Chapter 1 – Free movement of goods).
Draft regulations have been prepared, but they still need to be adopted. They would
improve the overall transparency of public procurement in Malta.
Having been a member of the Council of Europe's Group of States against Corruption
(GRECO) since May 2001, Malta received a group of experts from GRECO on an
evaluation mission in March 2002 and an evaluation report was consequently published.
There have been no significant changes since last year in the status and functioning of the
Permanent Commission against Corruption, and the actual impact of its work remains
low. The GRECO report recommended that the Permanent Commission should be
empowered to make use of means of compulsion, publish the results of its investigations
itself, and present its reports before parliament. It also suggested that the Permanent
Commission should be given the possibility to appoint persons with special knowledge
when necessary for its investigations. Such measures are necessary to improve the
effectiveness of the Permanent Commission.
More generally, Malta would benefit from a broad anti-corruption programme taking
account of the GRECO recommendations such as the strengthening of the police anti-
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corruption skills and tools, training of the judiciary in matters pertaining to the fight
against corruption, the strengthening and empowerment of the Permanent Commission
against Corruption, and the adoption of public procurement regulations in line with the
requirements of the
acquis.
Malta has signed all relevant Council of Europe conventions on corruption but it must
still ratify the Council of Europe’s Civil Law Convention on Corruption, which it signed
in January 2003.
Translation of the acquis into Maltese
In accordance with Articles 2 and 58 of the Act of Accession, all acts adopted by the
Union’s institutions and the European Central Bank prior to accession become applicable
to the new Member States and are to be published in the Official Journal of the European
Union in the new official languages. While the EU institutions take responsibility for the
final revision and publication of the translations, it falls to the acceding states to produce
the translations and to ensure a thorough legal and linguistic revision.
Malta started the process of translation of the acquis relatively late and is experiencing
difficulties to catch up with the Commission’s planning. There are probably more than
50 000 pages either not yet revised or not even translated. Due to a lack of human
resources, the revision process remains slow. There have been improvements and the
Maltese Translation Coordination Unit is now providing the legal revisers with a
constant flow of texts so that finalisation goes on regularly and steadily, but the volume
remains small. The quality of the Maltese version of the
acquis
appears to be generally
satisfactory. Legal revision has improved considerably in recent months.
The number of revised texts must increase greatly in the coming weeks, otherwise the
publication of the Special Edition of the Official Journal in Maltese may not be
completed in time for accession.
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2.
The chapters of the acquis
As indicated, the following review of Malta’s ability to assume the obligations of
membership has been structured in accordance with the list of 29 acquis chapters.
Accordingly, this section opens with an assessment of the acquis relating to the
cornerstones of the internal market which are known as the “four freedoms”, and
continues with a systematic review of each of the chapters, covering all aspects of the
acquis,
including sectoral policies, economic and fiscal affairs, regional policy,
environment, justice and home affairs, external policies, and financial questions.
Chapter 1: Free movement of goods
The principle of the free movement of goods implies that products must be traded freely
from one part of the Union to another. In a number of sectors, this general principle is
supplemented with a harmonised regulatory framework, following the “old approach”
(imposing precise product specifications) or the “new approach” (imposing general
product requirements). The transposition of harmonised European product legislation
represents the vast majority of the content of this chapter. In addition, efficient
administrative capacity to apply horizontal and procedural measures in areas such as
standardisation, certification and market surveillance is essential. This chapter also
covers detailed EC rules on public procurement, requiring specialised implementing
bodies.
The
horizontal and procedural measures
necessary for the administration of the
Community product acquis in the new approach sector are in place. Legislation has been
transposed and is in line with the acquis. The implementation structures for
standardisation, metrology, accreditation, conformity assessment and market surveillance
are all in place. Training programmes being carried out by these bodies should ensure
their operational efficiency by the date of accession. Malta’s standardisation body is a
full member of CEN and CENELEC.
Malta has transposed all the
sectoral legislation
under the
new approach
with the
exception of that on explosives for civil use. An agreement on conformity assessment
and acceptance of industrial products has been signed with Malta after an assessment of
the sectoral legislation involved (low voltage, electromagnetic compatibility, machinery,
lifts, personal protective equipment, explosive atmosphere, radio and telecommunication
terminal equipment, toys). This legislation complies with the
acquis.
Other new approach
sectors, including recreational crafts, have been assessed and the corresponding
legislation has been subsequently aligned with the
acquis.
As regards the
old approach
legislation, Malta has transposed most of the
acquis
in
these product sectors. It still needs to transpose the legislation on drug precursors and
pharmaceuticals for human use. A new system for marketing authorisations of medicines
has just been put in place, but the administrative capacity of the newly established
Medicines Authority still needs to be strengthened. Having recognised that the
identification of "new" chemical substances on its market is a matter of priority, Malta
should provide for the appropriate notification of such substances in accordance with the
acquis.
In the field of food safety, the transposition of the relevant
acquis
up to 2002 is
essentially completed. However, it should be noted that some pieces of EC legislation
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(on labelling of genetically modified foods, and some provisions on novel foods) will be
applicable only upon accession. The Food Safety Commission, designated by the
legislation as the competent authority for food safety and the co-ordinating body for food
control, is in place. Guides to good hygiene practice must still be finalised and the
Hazard Analysis Critical Control Points (HACCP) system must be enforced at all stages.
Training courses on HACCP have started in the food sector but food inspectors need
further training, particularly in auditing companies' HACCP plans. The Public Health
Laboratory and the Malta National Laboratory in the field of food safety need to be
upgraded and accredited. Aspects of food safety are also covered under
Chapter 7 –
Agriculture.
In the course of the accession negotiations, Malta was granted a transitional period
relating to the renewal of marketing authorisations for pharmaceutical products until the
end of 2006.
In the field of
public procurement,
the adoption of the new Public Contracts
Regulations has been pending and amended several times to ensure that they would fully
align legislation with the acquis in this area. They need to be issued. A Public Contracts
Appeal Board has been set up and presents the relevant guarantees of independence and
impartiality. It needs to be strengthened and its procedures need to be further developed.
The Directorate General of Contracts within the Ministry of Finance and Economic
Services, responsible for all public procurement, needs to be further strengthened,
particular as regards EU-related procurement. Its staff needs to be trained on new
procurement rules and procedures.
In the
non-harmonised area,
following screening of its legislation, Malta has identified
a considerable number of provisions that do not comply with the principle of free
movement of goods and need to be amended. A timetable has been agreed to complete
harmonisation before accession. Import and export licences, which are not in line with
the
acquis
will have to be removed by accession. Malta still has to adopt horizontal
legislation introducing a mutual recognition clause covering existing legislation.
Transposition of the acquis as regards arms control and cultural goods is still pending.
In the course of negotiations, Malta was granted a transitional period relating to the
existing monopoly in the importation, stocking and wholesale marketing of petroleum
products until the end of 2005.
Conclusion
Malta is essentially meeting the requirements for membership in the
horizontal and
procedural measures
necessary for the management of Community legislation in the
new approach sectors, the
new approach sectoral legislation,
and the
old approach
sectoral legislation.
Provided the preparations for the implementation of the food safety
and the chemicals
acquis
will be completed and efforts are made to ensure quick
adoption of the remaining pending legislation, in particular in the field of
pharmaceuticals, Malta should be in a position to implement this
acquis
from accession.
Efforts should be made to provisionally notify "new" chemical substances prior to
accession so as to ensure the continued marketing of such substances.
The commitments and requirements relating to
public procurement
and the
non-
harmonised area
are only partially met. Efforts need to be made to ensure quick
adoption of pending legislation in the fields of public procurement, mutual recognition,
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arms control and cultural goods, and to further strengthen administrative capacity in the
field of public procurement. The implementation of the foodstuffs acquis needs to be
improved.
Chapter 2: Free movement of persons
The
acquis
under this chapter provides for non-discriminatory treatment of workers who
are legally employed in a country other than their country of origin. This includes the
possibility of cumulating or transferring social security rights, which requires
administrative cooperation between Member States. In order to facilitate the practice of
certain professions, the acquis under free movement of persons also includes specific
rules concerning mutual recognition of qualifications and diplomas; for certain
professions a harmonised training curriculum must be followed to be able to use the
professional title. Furthermore, this area also covers the residence and voting rights of
EU citizens in any Member State.
In the field of
mutual recognition of professional qualifications,
the Mutual
Recognition of Qualifications Act and its implementing legislation globally aligns with
the general system of recognition, but the transposition of the general system directives
needs to be completed. Alignment with the sectoral rules on lawyers, architects,
pharmacists, doctors, dentists, general care nurses, veterinary surgeons, and midwives
has been partially achieved. The necessary implementing structures are in place. Malta
must ensure that its legislation does not contain any nationality, residence or language
requirements that are contrary to the acquis after accession.
In the area of
citizens’ rights,
amendments to the Immigration Act have been brought
into force. However, implementing legislation, in particular in the area of the right of
residence, the right to participate in municipal elections and the right to participate in
European Parliament elections has not yet been adopted. Legislation ensuring that non-
national European Union citizens residing in Malta are entered on electoral rolls in time
for the European Parliament elections has not been adopted. The main administrative
structures for implementation are in place.
As for
free movement of workers,
Malta has been granted a safeguard clause as regards
the free movement of workers. Until seven years after accession, Malta may retain its
work permit system for nationals of other Member States provided permits are issued
automatically. Implementing legislation in this area has not yet been adopted. Also,
subsidiary legislation under the Social Security Act transposing the acquis on
supplementary pension rights of workers moving within the Community still needs to be
adopted.
With regard to
co-ordination of social security systems
no transposition into national
legislation is needed to achieve alignment with the
acquis,
but appropriate administrative
capacity still needs to be set up. A substantial reinforcement of staff and consequent
training are needed.
Conclusion
Malta is essentially meeting the commitments and requirements in the area of
citizens’
rights, free movement of workers
and
co-ordination of social security systems.
Attention must be paid to the adoption of the outstanding legislation in the area of
citizen’s rights, including voting rights, and to transposing the acquis on supplementary
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pension rights of workers moving within the EU. Some adjustments need to be made as
soon as possible to the legislation on foreigners to allow EU citizens to participate in the
European elections of June 2004. The ongoing measures to ensure adequate
administrative capacity in these areas should continue.
Malta is partially meeting the requirements relating to the
mutual recognition of
professional qualifications.
In order to complete preparations for membership in this
area, Malta must enhance its efforts to finalise transposition of the general system
directives and the sectoral rules on lawyers, architects and healthcare professions, and to
adopt the relevant legislation on pharmacists. Administrative capacity to implement the
acquis
on mutual recognition of qualifications is in place.
Chapter 3: Freedom to provide services
Under this chapter, Member States must ensure that the right of establishment and the
freedom to provide services anywhere in the EU is not hampered by national legislation.
In some sectors, the
acquis
prescribes harmonised rules which must be respected if the
internal market is to function; this concerns mainly the financial sector (banking,
insurance, investment services and securities markets) but also some specific professions
(craftsmen, traders, farmers, commercial agents). Harmonised rules concerning personal
data protection and certain information society services must also be respected.
In the field of the
right of establishment and the freedom to provide non-financial
services,
Malta has transposed most of the
acquis.
Legislation has been screened for
potential legislative and administrative restrictions, and Malta is committed to removing
any remaining restrictions before accession. The Trade Licence Act does not provide for
a clear distinction between economic operators providing services in Malta temporarily
and those established permanently in order to ensure the free provision of cross-border
services, as required by the
acquis.
In the field of financial services, Malta is completing the implementation of its
commitments with regard to legislative alignment with the
acquis
in the
banking sector.
The legislation transposing electronic money and capital adequacy rules require fine-
tuning. The transposition of provisions on winding-up is still outstanding. The
regulations on the “European passport” rights for banks still have to be adopted.
As regards the
insurance sector,
the core insurance provisions are broadly already in
place. The procedure for Malta becoming a signatory of the ‘green card’ Multilateral
Guarantee Agreement, as foreseen in the 1
st
motor vehicle directive, still needs to be
finalised and efforts should be made to cope with the responsibilities linked to this status.
Some areas still require further fine-tuning, in particular the fourth motor insurance
directive. Also, some major updates to the implementing regulations are needed
(concerning, in particular minimum solvency and guarantee fund amounts in Euro).
In the field of
investment services and securities markets,
the legislation is broadly in
line, although further legislative amendments are still needed. The directive on financial
collateral remains to be transposed. Malta also needs to fully comply with the directives
on undertakings for collective investment in transferable securities and with the
guidelines of the capital adequacy directive, the provisions concerning the access to
regulated markets and clearing and settlement systems as well as for off-exchange
trading. Finally, Malta has to provide for new listing rules to be in line with the relevant
acquis.
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After the adoption of recent amendments to the Data Protection Act, eliminating possible
conflict of interest and safeguarding the independence of the Data Protection
Commissioner, Malta has reached a high level of alignment in the area of the
protection
of personal data and the free movement of such data.
As regards
information-society services,
legislation has mostly been brought into line
with the
acquis.
More specifically, the full transposition of the e-commerce directive
needs to be completed.
Conclusion
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations and is expected to be in a position to implement the
acquis
in the
areas of
banking, insurance, investment services and securities markets, protection
of personal data
and
information-society services
by the time of accession. Malta
needs to complete alignment with the
acquis
in these areas.
Malta is meeting the majority of the requirements for accession in the areas of
the right
of establishment and the freedom to provide non-financial services.
Enhanced efforts
are needed to remove all possible administrative and legal restrictions to the right of
establishment and the freedom to provide non-financial services.
Chapter 4: Free movement of capital
Under this chapter, Member States must remove all restrictions in national law on the
movement of capital between themselves, but also with third countries (with some
exceptions) and adopt EU rules to guarantee the proper functioning of cross-border
payments and transfers of all forms of capital. The acquis under this chapter also includes
harmonised rules on payment systems and the fight against money laundering, requiring
adequate enforcement capacity.
In the area of
capital movements and payments,
Malta is to a large extent in line with
the acquis but did not meet its commitment to completing the liberalisation programme
by 1 January 2003. A new law abolishing a number of restrictions relating mainly to
short-term capital movements has been recently adopted. Concerning the permanent
special arrangement Malta was granted for the purchase of secondary residences,
restricting the purchase of such property by EU citizens who have not been resident on
the island for at least five years, legislation has been aligned, and a non-discriminatory
system of acquisition of real estate and authorisation procedures in line with the
acquis
has been adopted.
In the field of
payment systems,
Malta has completed its legislative alignment. The
necessary implementing structures are in place.
Malta has aligned its legislation in the area of
money laundering.
Moreover, Malta is
completing implementation of the Financial Action Task Force recommendations by
phasing out bearer accounts. With regard to implementing structures, the financial
intelligence analysis unit is now fully operational (see
also chapter 24 – Justice and
home affairs).
Conclusion
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Malta is essentially meeting the requirements for membership and should be in a position
to implement the acquis in the area of
free movement of capital
from accession.
Concerning capital movements and payments, a limited number of specific issues
regarding the liberalisation programme will still need to be addressed before accession.
Chapter 5: Company law
Under this chapter, Member States must adopt and apply harmonised rules required for
the proper operation of companies in the internal market. They concern five legislative
fields: company law in the strict sense, accounting law, intellectual property rights,
industrial property rights, and the recognition and enforcement of judgements in civil and
commercial matters as well as of contractual obligations.
In the field of
company law
as such, Maltese legislation is essentially in line with the
acquis.
With regard to
accounting,
Malta has met its commitments and it should be in a position
to implement the
acquis
in this field from the date of accession. The administrative
structures are adequate.
In the field of
protection of intellectual and industrial property rights (IPR),
following the adoption of the new legislation on patents, trademarks, and copyright and
related rights, Malta has broadly aligned its legislation with the
acquis.
But further
legislation remains to be adopted, notably on exceptions to the rights, exhaustion and
revival of term. Important parts of the information society directive and provisions on
inter-Member State retransmission via cable remain to be transposed. The directive on
artists' resale rights needs to be transposed by 1 January 2006 at the latest. Before
accession, Malta must fully transpose the Directive on legal protection of
biotechnological inventions and adopt legislation on the legal protection of designs.
Malta should finalise the preparation of the necessary measures to accede the European
Patent Office.
Specific transitional rules will apply in relation to the granting of supplementary
protection certificates for medicinal and plant protection products, and in relation to the
extension of registered or pending Community trademarks to the territory of Malta.
As regards enforcement of IPR, administrative structures are in place but need to be
strengthened. Training, especially of judges and prosecutors, needs to be intensified.
Staffing has been increased and training carried out, but there remains a lack of resources
and fines lack sufficient deterrent effect. Further efforts are needed especially to cope
with the high level of piracy in music and video products. Better co-ordination among
enforcement bodies (in particular customs, police and judiciary) needs to be pursued.
The
Regulation replacing the Brussels Convention
on mutual recognition and
enforcement of foreign judgements in civil and commercial matters will be directly
applicable upon accession, and accession to the
Rome Convention
will only be possible
upon accession. Malta should designate the relevant courts or other authorities to ensure
swift implementation of these provisions
(see also Chapter 24 - Justice and home
affairs).
Conclusion
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Malta is essentially meeting the requirements for membership, and is expected to be by
accession in a position to implement the
acquis,
in the areas of
company law
and
accounting,
and the
Regulation replacing the Brussels Convention
and the
Rome
Convention.
The majority of commitments and requirements arising from the accession negotiations
in the field of the
protection of intellectual and industrial property rights
have been
met. Further legislative adjustments are required in respect of copyright and related
rights, including information society rules. Although the legislation and administrative
structures are generally in line with the
acquis,
enhanced efforts must be made to
strengthen enforcement of intellectual and industrial property rights. Better co-ordination
among enforcement bodies is required, training of enforcement bodies is required
(mainly, customs, police and judiciary) and the efficient functioning of a well-trained
judiciary should be given particular attention.
Chapter 6: Competition Policy
The competition
acquis
covers both anti-trust and state aid control policies. It includes
rules and procedures to fight anti-competitive behaviour by companies (restrictive
agreements between undertakings and abuse of dominant position), and to prevent
governments from granting state aid which distorts competition in the Internal Market.
Generally, the competition rules are directly applicable in the whole Union, and Member
States must fully co-operate with the Commission on the enforcement of these rules.
In the
anti-trust
sector, Malta has adopted legislation containing the main principles of
Community anti-trust rules as regards restrictive agreements, abuse of dominant position
and merger control. Following the extension of the scope of application of the Maltese
Competition Act to public undertakings, the legal framework for antitrust can now be
considered complete. Preparations should, as appropriate, continue for the application of
the EU's new procedural regulation.
Malta has the necessary implementing structure in place, and the Office for Fair
Competition is functioning satisfactorily. Additional resources need to be devoted to
enforcement, especially in view of the decentralised application under the new EU
antitrust procedural regulation. Further efforts would be opportune to raise awareness of
the anti-trust rules of all market participants and to build up a credible and transparent
competition culture. A Judicial Committee was set up for the training of the judiciary,
but special training for judges could still be usefully developed further.
The enforcement record is generally satisfactory, but has suffered from an apparent lack
of activity in the field of public companies. With the amended Competition Act, the
Office is now well placed to develop a record of enforcement also in this field. In
general, efforts to develop a more effective deterrent sanctions policy must be reinforced.
Further efforts would also be particularly opportune to address serious distortions of
competition, such as cartels, as well as to focus investigations on practices that are
important for the market structure.
In the field of
state aid,
Malta has adopted State aid rules covering the main principles of
the
acquis.
With respect to the transposition of the substantive rules, Malta satisfies the
basic requirement for the establishment of the necessary legislative framework.
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The necessary implementing structures are in place, and the State Aid Monitoring Board
is functioning satisfactorily. Malta needs to ensure the enforcement of state aid rules for
all new aid measures. Further efforts are needed to raise awareness of state aid rules
among all market participants and aid grantors. Malta must also pay further attention to
training the judiciary.
On the whole, whilst the enforcement record can be considered generally satisfactory,
and the assessment of the aid measures has been carried out in line with the
acquis,
the
number of scrutinised cases remains relatively small. The State Aid Monitoring Board
would need to remain vigilant on all new measures proposed by the Government, with a
view to ensuring satisfactory enforcement in the period leading up to accession.
Malta has a transitional arrangement until 2008 under the Accession Treaty to grant State
aid for the restructuring of its shipyards. The first implementation report shows that the
restructuring of the yards has so far not been carried out in accordance with Malta's
restructuring plan and with the specific provisions of the Accession Treaty. This puts into
serious doubt the proper implementation of Malta’s commitments. Malta also benefits
from a transitional arrangement in relation to certain fiscal aid benefits (a phase out of
incompatible fiscal aid to SMEs by the end of 2011, and modification of incompatible
fiscal aid to large companies). Furthermore, Malta is eligible for certain type of operating
aid until the end of 2008. These have necessitated amendments to the national legislation,
which have been adopted in June 2003. The assessment of the modifications shows that
the measures have been satisfactorily brought into conformity with the Accession Treaty.
As regards public undertakings and undertakings with special or exclusive rights, Malta
benefits from a transitional arrangement to adjust the market in the importation, stocking
and wholesale marketing of petroleum products by the end of 2005.
Conclusion
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations in the
anti-trust
area and is expected to be in a position to
implement this
acquis
from accession. In completing preparations for accession, Malta
must further strengthen the administrative capacity of its competition authority as well as
improve the enforcement record.
Malta is meeting the majority of the commitments and requirements arising from the
accession negotiations in the
state aid
area. In order to complete preparations for
membership, Malta should ensure effective enforcement of all new state aid measures in
the run-up to accession.
There are serious concerns as regards delays in the implementation of the restructuring
plan of the
ship-repair/shipbuilding industry.
Unless urgent remedial action is taken,
Malta will not meet the requirements for membership in this area by accession.
Chapter 7: Agriculture
The agriculture chapter covers a large number of binding rules, many of which are
directly applicable. The proper application of these rules and their effective enforcement
by an efficient public administration are essential for the functioning of the common
agricultural policy. This includes the setting up of management systems such as a Paying
Agency and the Integrated Administration and Control System, which are covered under
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”horizontal issues” below, and also the capacity to implement rural development actions.
The acceding countries must be ready to be integrated into the common market
organisations for a range of agricultural products, including arable crops, fruits and
vegetables, and meat. Finally, this chapter covers detailed rules in the veterinary field,
which are essential for safeguarding animal health and food safety in the internal market,
as well as in the phytosanitary field, including issues such as seed quality, harmful
organisms and plant protection products.
Horizontal issues
The
Paying Agency
functions will be the responsibility of a Paying Agency placed
within the Ministry for Rural Affairs and Environment. Subsidiary legislation required
for the organisation and operational functions of the Paying Agency – including laying
down accreditation criteria - remains to be adopted. The administrative structures still
remain to be established. Although Malta's agriculture in absolute terms is of limited
size, sustained and accelerated efforts are needed to ensure that the agency is operational
by accession. Given the lack of experience in managing EAGGF Guarantee aid,
developments in Malta need to be followed closely.
Progress with regard to
Integrated Administrative Control System
(IACS) is limited.
Unless significant additional efforts are made over the coming months, there is a serious
risk that Malta will not have a functioning IACS in place by the date of accession.
As regards
trade mechanisms,
the Paying Agency will manage export refunds and
issuing of licenses. The relevant control tasks will be under the responsibility of customs.
Administrative structures and procedures remain to be established. Given the amount of
work remaining, there are concerns as to whether Malta can have functioning systems in
place by the time of accession.
Administrative procedures for
quality policy
have been established but need to be
finalised. As regards
organic farming,
Malta is at a very early stage of its preparations
and needs to accelerate its preparations to be ready by accession.
Malta has been defined as one region for
Farm Accountancy Data Network
(FADN)
purposes. The Ministry of Rural Affairs and Environment acts as liaison agency. There
has been progress in this area but enhanced efforts are required on collecting and
processing of data.
As regards
state aid,
Malta obtained an eleven year transition period to grant state aid to
support agricultural producers, a seven year transition period to grant state aid to support
processors and recognised retailers of imported agricultural products and a five year
transition period for the granting of state aid for ferry transport of agricultural products
from Gozo. The administrative structures to implement these transitional measures will
need to be put in place.
As concerns direct payments to farmers, Malta decided not to apply the single area
payment scheme (SAPS).
Common market organisations (CMOs)
Land under
arable crops
is currently being registered under the Land Parcelling
Identification System (LPIS) of IACS. Administrative structures responsible for
monitoring imports and exports, price reporting and statistics remain to be put in place.
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Quality inspection procedures and bodies, intervention centres and storage premises
remain to be set up.
Subsidiary legislation for marketing standards, and a quality requirements and producers
organisation for
fruit and vegetables
remains to be adopted. Administrative structures
are in place for the recognition of producers’ organisations and management of
operational programmes but application of quality standards is still at a planning stage.
An inspection body compliant with EU requirements must still be set up. Mechanisms for
reporting of entry prices need to be set up. Malta is granted a 5-year transition period for
the application of the processed fruit and vegetable regime to individual producers.
In the area of
wine and alcohol,
the CMO for wine remains to be fully set up. A wine
Act has been adopted but secondary legislation remains to be adopted. The distribution
of competence between the Vine Products Commission and the Department of
Agriculture remains to be established. Further progress is needed with the setting up of
the vineyard register and the management and control of new plantings, replanting and
grubbing up of grapevines. Inventory of the wine potential should be prepared in
accordance with the relevant regulations.
As regards
olive oil,
Malta must finalise the setting up of the register of olive growers.
Preparations concerning the Geographical Information System must be speeded up. The
setting up of the structures for the management and control of production aid as well as
the control of quality standards also need to be finalised. Enhanced efforts are required in
the areas mentioned above if Malta is to have functioning systems in place by accession.
Concerning the
milk
quota management, the existing quota mechanism still needs full
harmonisation with Community rules. Administrative structures responsible for the
management of the CMO are in place, including a national Quota Control Board set up
for the management of the quota system. However, they have to be up-graded to ensure
that Malta has functioning market mechanisms for milk and milk products by accession.
As regards
beefmeat
and
sheepmeat,
administrative structures for the setting up of the
CMO, the carcass classification and price reporting system and labelling system remains
to be set up. Concerning
pigmeat,
legislative measures need to be adopted regarding
carcass classification and price reporting, as well as the administrative structures for the
setting up of the CMO for pig meat and price reporting system. Carcass classification is
carried out but needs to be aligned.
For
eggs and poultry,
legislative measures as well as administrative structures for
marketing standards, price reporting and the reporting of production statistics still need
to be adopted.
Rural development
The rural development planning unit was set up in February 2002 and the draft
institutional plan was presented, however the unit needs to be considerably strengthened
to allow Malta to utilise the resources allocated to it for rural development. A Draft Rural
Development Plan has been submitted, but it remains to be finalised. In order to complete
preparations for the EAGGF Guarantee funded rural development measures, Malta still
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has to submit the information and justifications specified during the accession
negotiations, in particular the cost of establishing producer groups, the extent of rubble
walls and the level of farm incomes.
Veterinary and phytosanitary issues
Transposition of legislation on transmissible spongiform encephalopathies (TSEs) and
animal by-products
has largely been achieved. TSE surveillance and removal of
Specific Risk Material are close to compliance with some shortcomings. Collection and
treatment of animal waste is not in compliance. There are serious concerns as regards the
finalisation of the construction of incineration plants. A total feed ban is in place.
The legislation on the
veterinary control system in the internal market
has been
largely transposed and Malta is participating in the computerised network linking
veterinary authorities, ANIMO. As regards the identification and registration of animals,
the legislation has been largely transposed and a computerised database is in place but
needs to be further developed. The identification system for pigs, sheep and goats also
needs to be further developed. The regulation transposing the financing of veterinary
inspections and controls has been adopted but it is not yet implemented. Transposition
regarding veterinary checks of imports from third countries and rules for imports is not
yet complete. As regards their implementation, significant work is still needed to finalise
the setting up of border inspection posts in compliance with EU requirements.
The legislation on
animal disease control
measures has been largely transposed.
Contingency plans for classical swine fever, food and mouth disease, Newcastle disease
and avian influenza have been provided. Malta is participating in the Animal Disease
Notification System (ADNS).
Steps have been taken to align the legislation on
trade in live animals and animal
products
with the
acquis.
Legislation on
public health
protection is in place but not fully implemented. The
upgrading of establishments needs to be accelerated, in particular in the milk sector. The
upgrading of establishments located in Gozo has yet to start.
The
acquis
on
common measures
(including zoonoses) has been transposed. The
laboratory capacity for residue-monitoring needs to be improved.
The acquis in the field of
animal welfare
has largely been transposed but efforts are
needed in order to ensure actual implementation and enforcement. Malta has been
granted a transitional arrangement until the end of 2006 as regards the conditions for
laying hens in certain farms.
In the field of
zootechnics,
steps have been taken to align the Maltese legislation with
the
acquis.
The acquis for
animal nutrition
still needs to be transposed and the evaluation of feed
mills completed.
In the field of
phytosanitary
legislation, considerable work is needed to ensure full
transposition of the relevant
acquis,
whether it concerns harmful organisms and quality
of seed or plant protection products. Attention needs to be given to ensuring effective
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implementation in the fields of plant quarantine and pesticide residues. The Registration
system of operators in the seeds and propagating material sector is in place.
Malta has to ensure that international veterinary and phytosanitary agreements are
brought into compliance with the EU
acquis
by accession.
In order to ensure a comprehensive approach to enhance food safety throughout the food
chain, the Food Safety Commission, designated by the legislation as the competent
authority for food safety and the co-ordinating body for food control, has been put in
place. Aspects of food safety are also covered under
Chapter 1 – Free movement of
goods.
Conclusion
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations, among the horizontal issues as regards
quality policy, state aid;
among the common market organisations (CMOs) as regards
arable crops, milk, sheep
and
pigmeat
and
eggs and poultry;
and in the veterinary field as regards
animal disease
control, trade in live animals and animal products, animal welfare
and
zootechnics.
Subject to good progress being maintained in the areas, Malta should be in the position to
implement the
acquis
by accession.
Malta is partially meeting the commitments and requirements for membership as regards
organic farming,
the
Farm Accountancy Data Network
(FADN) and the CMOs for
beefmeat, wine, fruit and vegetables
and for
olive oil;
as regards
rural development;
in the veterinary field as regards,
veterinary control systems in the internal market
(import controls),
common measures
(as regards residues),
public health
in agri-food
establishments and
animal nutrition;
and as regards
phytosanitary issues.
Unless
efforts are accelerated in these areas, there is a risk that functioning systems will not be
in place at accession.
There are serious concerns about Malta’s preparations to set up its
Paying Agency,
to
implement the
Integrated Administration and Control System
(IACS) and in the areas
of
trade mechanisms
and
TSEs and animal by-products
(availability of rendering
plants). Substantial additional efforts are urgently needed in these areas. Unless
immediate remedial action is taken, Malta will not be in a position to implement the
acquis in these areas by the date of accession.
Chapter 8: Fisheries
The
acquis
on fisheries consists of regulations, which do not require transposition into
national legislation. However, it requires the introduction of measures to prepare the
administration and the operators for participation in the Common Fisheries Policy (in the
areas of market policy, resource and fleet management, inspection and control, structural
actions and state aid). In some cases, existing fisheries agreements or conventions with
third countries or international organisations need to be adapted.
In the field of
resource and fleet management, inspection and control,
the fishing fleet
regulation remains to be adopted under the Fisheries Conservation and Management Act.
In the course of the accession negotiations Malta sought and obtained a specific
management regime within 25 nautical miles of baselines of Malta. Malta has ensured
the creation, the reinforcement, and the operational capacity of institutions in the field of
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fleet management, resources, inspection and control. A management plan for fleet
capacity has been adopted. A Fishing Vessel Register (FVR) already exists and is
operational. Re-measurement of fishing vessels has not yet started. A Vessel Monitoring
System (VMS) has not yet been installed on all eligible vessels, including overseas
fishing vessels, and the necessary level of personnel has not been reached.
In the area of
structural actions,
the chapter on fisheries in the Maltese Single
Programming Document (Development Plan) is currently being negotiated with the
European Commission. The Multi-annual Guidance Plan has been completed and a
fishing vessel registration database already exists and is continuously up-dated.
However, the Paying Agency has not been set up and additional staff needs to be
allocated to the Ministry of Rural Affairs and the Environment. Allocation of sufficient
administrative capacity for the managing and paying authorities for Financial Instrument
for Fisheries Guidance (FIFG) funded measures remains to be ensured.
With the adoption of the Producer Organisations Act the legal basis for the producer
groups as regards
market policy
has been created. Implementing legislation on
marketing standards, fishery freshness, size criteria and aquaculture remains to be
transposed. The administrative structures in the area of producers’ organisations are
being established but need further strengthening. Further recruitment of fisheries
protection officers is ongoing.
As regards
state aid
to the fisheries sector, Malta allocates limited aid to the fisheries
sector. These aid measures must be brought into conformity with the
acquis
by
accession.
Malta is not party to any
international fisheries agreements.
Malta has not yet applied
for membership to the International Commission for the Conservation of Atlantic Tuna
(ICCAT).
Conclusion
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations in the areas of
resource and fleet management, inspection and
control, market policy, state aid
and
international agreements
and is expected to be
in a position to implement the relevant
acquis
from accession. Malta needs to complete
alignment with the
acquis,
particularly as regards fish standards and the implementing
legislation on producers’ organisations. A Vessel Monitoring System needs to be
installed on all eligible vessels, and the strengthening of the administrative capacity
should be pursued as planned.
Malta is meeting the majority of its commitments in the area of
structural actions.
In
order to complete preparations for membership, Malta must accelerate its efforts to
establish its Paying Agency.
Chapter 9: Transport policy
EC transport legislation aims at improving the functioning of the Internal Market by
promoting efficient and environment- and user-friendly transport services. The transport
acquis
covers the sectors of road transport, railways, aviation, maritime transport and
inland waterways. Member States are required to adopt and implement legislation
concerning technical and safety standards as well as social standards. In order to further
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develop the European Single Transport Market, EC legislation also includes rules on
market liberalisation. An important aspect of EC maritime policy is the establishment of
Union-wide maritime safety standards.
The extension of the
trans-European transport networks
has been defined. While the
necessary implementing structures in this area are in place, the administrative capacity to
prepare for the investments that will be needed in transport infrastructure requires further
strengthening, in both qualitative and quantitative terms.
In the land transport sector, Malta needs to complete its legislative alignment with the
road transport
acquis.
Framework legislation is in place and in line. According to the
transitional arrangement granted to Malta, it should finalise its implementation of the
fiscal
acquis
by the end of December 2004 for vehicles operating internationally and by
the end of December 2005 for vehicles operating nationally, in accordance with a
timetable for the staged introduction of vehicle taxes. As regards the social field, Malta
needs to complete its alignment with the
acquis,
notably regarding the three “admission
to the occupation” criteria for all new and existing transport operators. In the technical
field, implementing legislation remains to be adopted before accession with regard to
transportable pressure equipment and dangerous goods transport. The necessary
administrative structures – the Malta Transport Authority – in this area are in place. This
body has been strengthened, but it will have to be further reinforced and training of its
staff should be pursued, notably as regards enforcement issues.
Malta has been granted transitional arrangements for the phasing-in of roadworthiness
tests for certain vehicles used in domestic transport (until end of December 2004), and
for the retrofitting of certain vehicles used in domestic transport with speed limitation
devices (until end of December 2005).
In the area of
air transport,
the framework legislation is in place and essentially in line
with the
acquis,
but some modifications are needed, notably regarding noise reduction
and ground handling. In addition, rules on fares still need to be transposed and some
secondary legislation still requires adoption. The administrative capacity is satisfactory
in overall terms, but specific vacancies need to be filled and training of staff should be
pursued.
In the field of
maritime transport,
framework legislation is in place and in line with the
acquis.
However, the adoption of implementing legislation remains to be completed, in
particular in relation to classification societies, Port State control, Vessel Traffic
Management Information System, port reception facilities, system of mandatory surveys
for the safe operation of regular ro-ro ferry and high-speed passenger craft services,
marine equipment and fishing vessels. The relevant administrative structures in this area
are in place, but staffing levels should be further strengthened. Malta should pursue its
efforts to further improve safety standards. Delays have occurred in the implementation
of the Maltese Action Plan. According to statistics for 2002 under the Paris
Memorandum of Understanding, the percentage of Maltese flag vessels detained
following Port State control was 7.4%. This compares with an average for EU-flagged
vessels of 3.5% in 2002. The
Maltese flag
is still on the black list of the Paris
Memorandum of Understanding. Efforts should be sustained to ensure that Malta will
meet its objective of removing the Maltese flag from the Paris MoU black list.
Conclusion
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Malta is essentially meeting the requirements arising from the negotiations as regards
trans-European transport networks
and in the areas of
road
and
air transport,
and is
expected to be in a position to implement the
acquis
from the time of accession, provided
that the current pace of progress is maintained. In completing preparations for
membership, Malta needs to reinforce administrative capacities for project management
regarding trans-European transport networks and complete alignment in air transport. In
the area of road transport, Malta needs to complete alignment and further reinforce its
administrative capacity.
Malta must give urgent attention to adopt implementing legislation and further reinforce
its administrative capacity to implement the acquis in the area of
maritime transport.
There are serious concerns as regards resources allocated to the fulfilment of flag state
obligations in the field of maritime transport. The implementation of these tasks requires
urgent improvements. Unless substantial efforts are made, Malta risks not to meet the
requirements for membership in this area by accession.
Chapter 10: Taxation
The acquis on taxation largely covers indirect taxation, as concerns VAT (value-added
tax) and excise duties. It lays down definitions and principles of VAT. Excise duties on
mineral oils, tobacco products and alcoholic beverages are regulated at EU level as
concerns the structure of the duty, the level of minimum rates and the holding and
movement of excisable goods. As concerns direct taxation, the acquis covers some
aspects of corporate taxes and aims mainly at removing obstacles to cross-border
activities between enterprises. Finally, the Community legislation in the area of
administrative co-operation and mutual assistance provides tools to prevent intra-
Community tax evasion and tax avoidance on both direct and indirect taxation.
In the area of indirect taxation, Malta is almost fully in line with the acquis on
VAT.
The
remaining limited issues concern completing alignment of the scope of the reduced VAT
rate (electricity) and defining more precisely the scope of the application of the reduced
VAT rate and zero-rating (as for the latter, this should be done in relation to the scope of
the relevant transitional measures granted, see below). Malta also needs to address
taxable transactions by public authorities (electricity and steam) and to fully ensure equal
treatment irrespective of origin of certain goods in a few areas. Moreover, Malta should
further address the application of certain special schemes which may not be applied
without prior EU authorisation. During accession negotiations Malta was granted a
transitional period concerning the continued application of zero rate on foodstuffs for
human consumption and pharmaceutical products until 1 January 2010. Malta has
obtained derogations as concerns VAT exemption of international and inland passenger
transport and domestic inter-island sea passenger transport, VAT exemption without
credit of input VAT on water supplied by public authorities and on buildings and
building land. Finally Malta was granted a derogation concerning the VAT exemption
and registration threshold of € 37,000, € 24,300 and € 14,600 for particular categories of
small and medium-sized enterprises (SMEs).
The capacity of the tax administration in the area of VAT is adequate. However, control
methods, including the introduction of computerised auditing, remain to be improved.
Ongoing efforts to improve the level of non-collected tax revenue should be continued
and the developed electronic tax return system should be made operational.
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As concerns
excise duties,
further alignment is still required, in particular on the taxable
scope and the definition of some products; on the level of rates on some products; and on
some exemptions, including the elimination of those granted on an ad-hoc basis. Malta
also needs to extend its suspension arrangements to include intra-community movements,
and to limit its special scheme for small breweries to small independent breweries only,
and to ensure that such scheme is implemented in a non-discriminatory manner,
irrespective of origin.
The necessary administrative structures remain to be strengthened further, and efforts in
this respect should continue. Priority should be given to improving the efficiency of
excise duty collection and to introducing risk analysis and auditing techniques.
In the area of
direct taxation,
Malta needs to complete transposition of the acquis as
concerns the taxation of raising of capital and on mergers, and transpose the acquis on
interests and royalties and on taxation of savings income. In order to comply with the
principles of the Code of Conduct for Business Taxation and taking into account the
conclusions of the Council, Malta should remove the preferential treatment of
international trading companies for non-residents, remove the preferential treatment of
foreign income as defined in its legislation for non-residents; and it should introduce
appropriate anti-abuse measures in relation to profit distributions from foreign
shareholdings. Malta should also significantly limit the discretionary power of the
Minister in granting special tax exemptions and remove the entitlement to additional tax
deductions currently granted to investment service companies. The capacity of the tax
administration in the area of direct taxation is adequate and qualified staff is gradually
being recruited. Methods for the verification of transfer pricing should be established.
On
administrative co-operation and mutual assistance,
Malta is taking the necessary
steps to transpose the
acquis
and implement it by accession, both from the legislative
point of view and as concerns organisational structures including information technology
systems. The Central Liaison Office (CLO) and the Excise Liaison Office (ELO) have
not yet been established. Preparations for setting up the VAT Information Exchange
System (VIES), the VAT on e-services application, and the excise electronic database
(SEED) are ongoing.
Conclusion
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations in the area of
excise duties, VAT
and
administrative co-
operation and mutual assistance,
and is expected to be in a position to implement this
acquis by accession. Malta needs to complete legislative alignment, in particular as
concerns the scope and the definition of the application of the reduced VAT rate, and of
VAT zero-rating, as for the latter where transitional measures were granted. Subject to
good progress being maintained as concerns the VIES project and the ‘VAT on e-
services’ application, Malta should have these functioning systems in place by accession.
Malta is partially meeting the commitments and requirements arising from accession
negotiations in the area of
direct taxation.
In order to complete preparation for
membership, urgent attention must be given to remove the preferential treatment of
international trading companies for non-residents and the preferential treatment of
foreign income, and to introduce appropriate anti-abuse measures in relation to profit
distributions from foreign shareholdings, taking into account the conclusions of the
Council on the Code of Conduct for Business Taxation. Unless remedial action is taken
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by Malta, the Maltese tax system will not be in line with the principles of the Code of
Conduct for business taxation by the date of accession.
Chapter 11: Economic and monetary union
EC legislation on Economic and Monetary Union (EMU) contains specific rules ensuring
the independence of central banks in Member States, prohibiting indirect financing of the
state by the central bank, and disallowing privileged access of the public sector to
financial institutions. These rules must be transposed into the national legislation, despite
the fact that Malta will not yet adopt the euro as a currency from accession. EMU policy
also includes the co-ordination of exchange rate and economic policies, adherence to the
stability and growth pact and the statutes of the European System of Central Banks.
Malta has met the commitments and requirements arising from the accession negotiations
in the area of
economic and monetary union
and is in a position to implement the
acquis as from accession.
Chapter 12: Statistics
The
acquis
in the field of statistics requires adoption of basic principles such as
impartiality, reliability, transparency, confidentiality of individual data and dissemination
of official statistics. It also covers methodology, classifications and procedures for data
collection in various areas such as statistical infrastructure, macro-economic and price
statistics, business statistics, transport statistics, external trade statistics, demographic
and social statistics, agricultural statistics and regional statistics. The focal point of the
statistical system of a country is the National Statistical Institute, which acts as the
reference point for the methodology, production and dissemination of statistical
information.
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations in the area of
statistics
and is expected to be in a position to
implement the
acquis
as from accession. Malta needs to make minor legislative
adjustments in the areas of demographic and social, regional, macro-economic and
external trade statistics. Further strengthening of Malta’s administrative capacity is still
needed.
Chapter 13: Social policy and employment
The
acquis
in the social field includes minimum standards in fields such as labour law,
equal treatment of women and men in employment and social security, and health and
safety at work. Specific binding rules have also been developed in public health (on
tobacco control and surveillance and control of communicable diseases) and recently also
with respect to non-discrimination on grounds of racial or ethnic origin, religion or
belief, disability, age or sexual orientation. The European Social Fund (ESF) is the main
financial tool through which the EU supports the implementation of its Employment
Strategy and contributes to social inclusion efforts (implementation rules are covered
under Chapter 21, which deals with all structural instruments). The acceding countries
are expected to be able to participate in social dialogue at European level, and in the EU
policy processes in the areas of employment, social inclusion and social protection.
In the area of
labour law,
transposition of legislation is still required in the field of fixed-
term work. Some legal adjustments are necessary with regard to posting of workers,
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transfer of undertakings and insolvency. Concerning working time, a transitional
arrangement was granted until the end of July 2004 and until the end of December 2004
with respect to existing collective agreements in the sectors concerned. Transposition of
the new
acquis
concerning involvement of workers in the European Company and
information and consultation of workers is foreseen after accession. The National Labour
Inspectorate is in place. Additional posts have been approved and the recruitment of
inspectors is ongoing. Further strengthening, in terms of both staffing and technical
facilities, is needed.
In the field of
equal treatment of women and men,
further alignment is still needed on
equal treatment in matters of occupational social security schemes. The pensionable age
for male and female civil servants will have to be equalised upon accession, when the
pension scheme constitutes pay within the meaning of the Treaty and EC case law.
Implementing structures should be put in place.
In the area of
health and safety at work,
legislation has been partially transposed.
Further legislative alignment is required in the areas of mineral and extracting sites,
fishing vessels, work in potentially explosive atmospheres and limit values. The
Occupational Health and Safety Authority has been set up. Further strengthening in
terms of staff and technical facilities is still needed. Sustained efforts to ensure effective
application of the
acquis
are needed. Transposition of the Directives on mobile
construction sites and noise at work has to be done. Malta was granted a transitional
period up to the end of December 2005 with regard to the use of work equipment by
workers.
As regards
social dialogue,
the institutional and administrative framework is in place,
but effective tripartite social dialogue, as well as bilateral sectoral social dialogue, should
be strengthened. In general, the administrative capacity of both government and social
partners needs to be reinforced.
In the field of
public health,
Malta has recently adopted legislation aiming at
transposing the tobacco
acquis.
The legislation with regard to surveillance and control of
communicable diseases has been aligned with the
acquis.
However, its implementation
needs to be strengthened, and the EU case definitions should also be taken over. New
laboratory equipment and training in modern epidemiology, as well as additional
computerisation, are needed. Efforts should continue in order to develop a health
monitoring system with a view to obtaining health data and indicators comparable with
the Community health monitoring system.
Concerning
employment policy,
efforts are still needed to effectively implement the
priorities identified in the Joint Assessment of the Employment Priorities (JAP). In
particular it is important to enhance employment rates, especially for women and older
workers, to address the emerging skills mismatches, to increase incentives for people to
take up work, to address informal and undeclared work and further improve the public
employment services.
As regards the
European Social Fund (ESF),
the administrative framework is in place.
However, development of the administrative structures for the management of the ESF
should be accelerated. Preparations for participating in the transnational operations of the
EQUAL initiative need to be reinforced. The capacity of the Ministry of Labour and
Social Affairs (one of the intermediate bodies for the human resource development
priority) should be further strengthened to effectively monitor, evaluate and financially
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manage the fund, through expansion of its ESF unit. The capacity of the other
intermediate body, the Ministry of Education, should be developed and its tasks clarified.
The Commission and Malta are finalising the Joint Memorandum on Social Inclusion
(JIM), which identifies key challenges and possible policy orientations for promoting
social inclusion.
On this basis, an integrated strategy and a National Action Plan on
social inclusion will have to be developed. Analytical work and social statistics systems
on poverty and social exclusion should continue to be developed in line with EU
commonly agreed indicators on social inclusion.
In the field of
social protection,
the activities of the National Commission for Persons
with Disability need to be further developed, to ensure the enforcement of the various
provisions of the Equal Opportunities Act.
Concerning
anti-discrimination,
Malta has not yet transposed the non-employment
aspects of the Race Directive. Adjustments are needed to ensure the full transposition of
the Directive on equal treatment in employment. Moreover, the Equality Body required
by the
acquis
needs to be established.
Conclusion
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations in the areas of
labour law, equal treatment of women and men,
social dialogue, employment policy, social inclusion
and
social protection
and is
expected to be in a position to implement this
acquis
from accession. Alignment with
specific aspects of the
acquis
in the fields of labour law and equal treatment of women
and men as well as strengthening of the relevant implementing structures should be
pursued.. As regards employment policy, the effective implementation of the priorities
identified in the Joint Assessment Paper is necessary to prepare for full participation in
the European Employment Strategy.
Malta is meeting the majority of the requirements for membership in the field of
health
and safety at work, public health
(with regard to communicable diseases),
European
Social Fund
and to a lesser extent
anti-discrimination.
Further alignment of legislation
is needed in order to achieve transposition of all the
acquis
on health and safety at work.
With regard to European Social Fund, including EQUAL, while considerable progress
has been achieved during the last few months, further efforts are urgently needed in order
to strengthen the administrative capacity for management, implementation, monitoring,
audit and control at both national and regional level. Enhanced efforts are required in
order to ensure full transposition and implementation of the anti-discrimination
acquis.
Chapter 14: Energy
EU energy policy objectives include the improvement of competitiveness, security of
energy supplies and the protection of the environment. The energy
acquis
consists of
rules and policies, notably regarding competition and state aids (including in the coal
sector), the internal energy market (for example, opening up of the electricity and gas
markets, promotion of renewable energy sources, crisis management and oil stock
security obligations), nuclear energy and energy efficiency. This chapter also covers
important aspects of the safety of nuclear installations.
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With respect to
security of supply,
and in particular oil stocks, both framework and
implementing legislation are in place in Malta and are in line with the acquis. The
administrative capacity required - the Malta Resources Authority - is in place, but needs
to further confirm itself in its role. Despite some delay for some product categories,
building up of oil stocks is essentially taking place in accordance with the transitional
arrangement it has been granted, namely to reach the 90 days of oil stocks required by
the acquis by the end of 2006. Efforts should be maintained.
In the field of
competitiveness and the internal energy market,
for electricity,
framework and implementing legislation have been adopted by Parliament and are in line
with the
acquis.
It will enter into force by accession. Regarding gas, framework and
implementing legislation are in place and in line with the
acquis.
Malta plans to apply,
under the directive, for derogations under the directive as a 'small isolated system'
including regarding electricity market opening. There is currently no natural gas in the
Maltese economy. Remaining electricity price distortions need to be removed. The
regulatory body, the Malta Resources Authority, is established but needs to be further
strengthened. Malta should transpose the recently adopted electricity and gas directives
in line with the timetable provided for by this
acquis.
In the area of
energy efficiency and renewable energy,
framework legislation (the
Product Safety Act) is in place. Implementing legislation needs to be completed
including as regards the newest
acquis.
Administrative structures in this area, with the
Malta Resources Authority as the main institution, are in place but need to be
strengthened.
In the field of
nuclear energy and nuclear safety,
Malta meets the commitments and
requirements arising from the accession negotiations and is in a position to implement
the Euratom
acquis
as from the date of accession. During the accession negotiations,
Malta committed itself to providing further information on measures taken to implement
the recommendations of the June 2001 Council Report on Nuclear Safety in the Context
of Enlargement. Malta provided such information in January 2002. In August and
September 2003, Malta submitted additional information regarding recent progress made
in nuclear safety and radiation protection, namely legislative amendments and the
awaited establishment of the Radiation Protection Board.
Conclusion
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations in the
energy
chapter and is expected to be in a position to
implement the acquis in these areas by accession. Malta needs to progressively build up
oil stocks in line with the schedule agreed during the negotiations and prepare for the
implementation of the electricity directive. In addition, it must complete alignment by
adopting implementing legislation as regards the 2002
acquis
on energy efficiency and
renewable energy. It also needs to continue strengthening the administrative capacity in
the energy sector.
Chapter 15: Industrial policy
EC industrial policy seeks to enhance industrial competitiveness and rates of
employment, whilst operating in markets open to international competition. Its aim is to
speed up adjustment to structural change, encouraging an environment favourable to
initiative and to the development of undertakings throughout the Community. EC
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industrial policy mainly consists of policy principles and horizontal and sectoral
industrial policy communications.
Malta’s
industrial strategy
essentially complies with the concepts and principles of EC
industrial policy, i.e. it is market-based, stable and predictable. An industrial strategy has
recently been adopted. The necessary administrative structures in this area are in place.
In the area of
privatisation and restructuring,
Malta needs to develop clear guidelines
for the privatisation process. Privatisation remains slow. The restructuring process is
ongoing and Malta has to implement the shipbuilding sector restructuring plan. Great
care will have to be taken that the restructuring policy is implemented in a manner that
conforms to the competition and state aid
acquis
so as to create efficient and competitive
firms. The necessary administrative structures in this area are in place, but are still weak.
Conclusion
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations in the
industrial policy
chapter and is expected to be able to
implement the
acquis
as of accession. In completing preparations for membership in the
area of privatisation and restructuring, Malta has to implement the shipbuilding sector
restructuring plan and should continue to strengthen its administrative capacities.
Chapter 16: Small and Medium-sized Enterprises
SME policy aims to improve the formulation and co-ordination of enterprise policy
across the internal market with a view to supporting the development of SMEs. In doing
so, it seeks to improve the overall business environment in which SMEs operate. SME
policy consists largely of consultation fora and Community programmes, as well as of
communications, recommendations and exchanges of best practices.
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations relating to
small and medium-sized enterprises.
Alignment with
the new Commission recommendation on the SME definition should be carried out.
Further efforts should be made to ensure the efficient operation of the Malta Enterprise
Board. The implementation of the European Charter for Small Enterprises should be
maintained.
Chapter 17: Science and research
Due to its specificity, the
acquis
in the field of science and research does not require any
transposition in the national legal order. However, the necessary implementing capacity
needs to be created to allow for effective participation in activities under the Framework
Programmes in the field of research.
Malta has met the commitments and requirements arising from the accession negotiations
in the area of
science and research
and will be in a position to implement the
acquis
as
from accession.
Chapter 18: Education and training
Education, training and youth is primarily the competence of the Member States. The
Community's acquis consists of a directive on education of the children of migrant
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workers, and of action programmes and recommendations. The necessary implementing
capacity needs to be in place to allow for effective participation in the Community
programmes related to this chapter (Leonardo da Vinci, Socrates and Youth).
Malta has met the commitments and requirements for membership in the area of
Community programmes,
and will be in a position to implement this part of the
acquis
from accession. However, the relations between the actors involved in the current
institutional set up need to be clarified. The implementing capacity for Community
programmes will need to be enhanced to benefit from additional allocations for
decentralised actions following accession.
In the area of
education of children of migrant workers,
Malta has adopted legislation
which transposes the
acquis.
Due implementation of the legislation needs to be ensured.
Conclusion
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations in the area of
education and training
and is expected to be in a
position to implement this acquis from accession. Efforts to implement the
acquis
on
education of children of migrant workers should continue
Chapter 19: Telecommunications and information technologies
The acquis in the field of telecommunications consists mainly of the 1998 regulatory
framework and a 2000 regulation, and is aimed at the elimination of obstacles to the
effective operation of the single market in telecommunications services and networks,
and the achievement of universally available modern services. A new regulatory
framework on electronic communications was adopted in 2002 and must be
implemented. As regards postal services, the objective is to implement the single market
by opening up the sector to competition in a gradual and controlled way, within a
regulatory framework which assures a universal service (1997 and 2002 acquis).
In the field of
telecommunications,
Malta's legislation is mostly in line with the 1998-
2000 acquis. However, there is still a legal limitation on the number of licences (two) to
be issued for public mobile telecommunications system and services, and further licences
will not be issued before 2005. Moreover, Maltese legislation provides for foreign
ownership restriction (subject to international agreements) for companies applying for a
licence. In order to further develop the competition in the market, alignment to the
telecommunications
acquis
in the areas of carrier selection and cost-orientation of tariffs
needs to be completed. The 2002
acquis
in electronic communications remains to be
transposed. The necessary administrative structures in this area are in place. The Malta
Communications Authority is fully operational.
In the area of
postal services,
Malta needs to complete legal alignment with the
acquis,
mainly regarding the universal service obligation, accounting issues, quality of service,
the general authorisation system and licensing. Transposition and implementation of the
2002 second postal directive remains to be done. The Malta Communications Authority,
also responsible for regulating the postal sector, needs to strengthen its administrative
capacity.
Conclusion
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Malta is partially meeting the commitments and requirements arising from the accession
negotiations in the
telecommunications
and
postal services
areas. In order to complete
the preparations for accession in the telecommunications area, enhanced efforts are
required to abolish the competition restraints (foreign ownership restriction and
limitation of number of licences in the case of the mobile market). Malta must also align
its legislation with the recent telecommunications
acquis.
Enhanced efforts must be made
to finalise the transposition of the
acquis
in the postal sector.
Chapter 20: Culture and audio-visual policy
The culture and audio-visual policy chapter requires legislative alignment with the
Television without Frontiers directive and contains the community programmes Culture
2000, Media Plus and Media Training. Alignment with the Television without Frontiers
directive creates the conditions for the free movement of television broadcasts within the
Community. It implies basic common requirements concerning advertising; the
protection of minors and public order; and the promotion of European works.
Malta has met the commitments and requirements arising from the accession negotiations
as regards
culture and audio-visual policy,
with certain elements of the audio-visual
policy acquis coming into force on accession, taking into account Malta’s international
obligations.
Chapter 21: Regional policy and co-ordination of structural
instruments
The
acquis
under this chapter consists mostly of regulations, which do not require
transposition into national legislation. They define the rules for drawing up, approving
and implementing Structural Funds programmes and Cohesion Fund actions. These
programmes are negotiated and agreed with the Commission, but implementation is the
responsibility of the Member States. It is essential that Member States respect
Community legislation in general, for example in the areas of public procurement,
competition and environment, when selecting and implementing projects, and have the
necessary institutional structures in place to ensure implementation in a sound and cost-
effective manner from the point of view of both management and financial control.
Malta has agreed with the Commission on a NUTS classification of its
territorial
organisation.
As regards the
legislative framework,
provisions for multi-annual budgeting and
budgetary flexibility have to be introduced through a new Public Finance Management
Act.
The legislative framework for financial control and compliance with other Community
policies is monitored in other chapters. However in order for Malta to make effective use
of its eligibility for structural funds from 1 January 2004, the relevant
acquis
in areas
such as public procurement, state aid and environmental protection will need to be fully
respected from that date. Urgent efforts are needed in particular in the area of public
procurement.
The necessary
institutional structures
for the preparation and implementation of the
Structural and Cohesion Funds have all been put in place, including those for the
implementation of the specific financial control provisions.
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The division of tasks between the Managing Authority and the intermediate bodies has
been clearly defined. The precise functions and tasks of the "Regional Committee for
Gozo" (responsible for preparing all projects relating to the island of Gozo), its
composition, and more important, its links with the intermediate bodies and the
Managing Authority, are still being defined.
Specific administrative arrangements have been made for inter-ministerial co-ordination.
The Single
Programming
Document (SPD) has been submitted. It is expected that the
programme complement is submitted in October 2003. The ex ante evaluation was
submitted with the SPD.
The partnership consultation process for the programming phase relied on the existing
structures for social dialogue. A number of sectoral working groups have been set up and
broad workshops were organised to discuss the programming document. This process is
considered to have been in line with the requirements of the
acquis.
Interministerial co-
ordination and the discussions with the partners have progressed satisfactorily. A
computerised monitoring system has been set up and is in its testing phase. In order to
ensure effective monitoring, a decision on the key indicators to be used needs to be
taken.
Efforts are needed to establish a pipeline of projects, in particular for the island of Gozo,
that are ready to be implemented in technical and financial terms, so as to enable Malta
to benefit fully from Community funds as soon as the programme starts.
The
financial management and control
system has been established. However, the
Paying Authority must obtain assurance of the expenditure declared for the purpose of
certification. In addition, it should be clarified who is responsible for carrying out the
required management checks.
The independent Internal Audit and Investigations Directorate will provide internal audit
services to the Managing Authority and the Paying Authority. It is responsible for the
systems audits and 5% and 15% on-the-spot checks. The methodology for these checks
needs clarification.
Additionality will be verified before approval of the Single Programming Document.
Conclusion
Malta is essentially meeting the requirements for membership in relation to
territorial
organisation, institutional structures
and
programming.
Malta needs now to focus, on
finalising the setting up of the Regional Committee for Gozo and establishing, in
particular for Gozo, an adequate pipeline of well-prepared projects.
Malta is meeting the majority of the requirements as concerns the
legislative framework
and
financial management and control.
In order to complete preparations for
membership, it must finalise alignment of its public procurement legislation and to
strengthen its capacity in this field in order to avoid bottlenecks jeopardising the
absorption of the allocated funds. Malta needs to ensure that final beneficiaries will be in
a position to effectively apply the rules and procedures resulting from the new legislation
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in order to benefit from Community funding from 1 January 2004. Particular attention
must be paid to finalising arrangements for financial management and control.
Chapter 22: Environment
Community environment policy aims to promote sustainable development and protect the
environment for present and future generations, and is based on the integration of
environmental protection into other Community policies, preventive action, the polluter
pays principle, fighting environmental damage at source, and shared responsibility. The
acquis
comprises over 200 legal acts covering horizontal legislation, water and air
pollution, management of waste and chemicals, biotechnology, nature protection,
industrial pollution and risk management, noise, and radiation protection. Ensuring
compliance with the
acquis
requires significant investments, but also brings significant
benefits for public health and reduces costly damage to forests, buildings, landscapes and
fisheries. A strong and well-equipped administration at national, regional and local level
is imperative for the application and enforcement of the environment
acquis.
Horizontal legislation
is in place and is in line with the
acquis,
except for the recent
acquis
on strategic environmental impact assessment, which needs to be transposed and
implemented by July 2004 in line with the Directive. Administrative capacities in the
area are in place, but further work is however needed within the Malta Environment and
Planning Authority to ensure a proper implementation of the
acquis..
In the
air quality
sector, legislation is in place and is in line with the
acquis.
Administrative capacities are largely in place. However, monitoring capacity needs to be
enhanced as well as air quality plans and programmes completed and implemented. The
sulphur content of liquid fuels needs to be aligned by accession. As regards volatile
organic compound emissions from the storage and distribution of petrol, a transitional
arrangement until 31 December 2004, with intermediate targets, has been agreed for
certain installations in Malta.
In the field of
waste management,
legislation is in place and is in line with the
acquis,
except for implementing legislation on packaging and the recent
acquis
on end-of-life
vehicles. Administrative capacities need considerable strengthening in order to cope with
the variety of tasks in this area. The waste management plan needs to be aligned fully
with the
acquis
by accession. A supervision system for waste shipments, a deregistration
system and permits for end-of-life vehicles, and permit conditions for landfills need to be
established by accession. The collection systems (including batteries) need to be
expanded, and the register of collectors of waste oils and permits for disposers of waste
oils established. The establishment of recovery and disposal facilities needs to continue
in order to ensure compliance in accordance with the agreed deadlines. The time-scale
for full implementation of the
acquis
is particularly tight and enhanced efforts are
therefore required to ensure that the
acquis
in this sector is implemented by accession.
Attention will need to be paid to ensuring that staff recruitment is completed in time.
Transitional arrangements until 31 December 2009 for the recovery and recycling of
packaging waste and until 31 December 2007 for beverage packaging, with intermediate
targets, have been agreed.
In the area of
water quality,
further transposition is still taking place. The process
remains to be completed by accession with regard to drinking water and bathing water, as
well as the recent framework
acquis
on water. Except for the water framework, where the
competent authority needs to be designated, the administrative capacities are largely in
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place, but agreements need to be concluded to achieve better coordination between the
various competent authorities. An action programme and code of good practice for
nitrates need to be adopted, and drinking water monitoring continue to be enhanced.
Authorisations for discharges of dangerous substances need to be issued and programmes
for discharges of dangerous substances completed. Transitional arrangements until 31
March 2007 for urban waste water, until 31 December 2005 for drinking water, and until
31 March 2007 for discharges of certain dangerous substances, with intermediate targets,
have been agreed.
In the field of
nature protection,
legislation is in place. Enhanced efforts are however
required to prepare a list of proposed sites of Community interest and to designate
special protection areas by accession, including the completion of the consultation
process. Malta needs to ensure that relevant protection measures are applied by
accession. The administrative capacities required are largely in place, but considerable
efforts are needed to ensure better enforcement of the legislation on birds. Producing an
enforcement strategy should be a priority of the national Ornis Committee. Also, the
Ornis Committee needs to finalise the collection of data, which will allow for
scientifically defined hunting seasons. As regards the protection of wild birds, a
transitional arrangement, with intermediate targets, has been agreed. Until 2008 Malta
will be allowed to use clap-nets to capture seven finch species in order to establish a
captive breeding system.
The legislation on
industrial pollution and risk management
is in place and is in line
with the
acquis,
except for major accident hazards (land-use provisions) and the
transitional arrangement agreed for large combustion plants, which need to be transposed
by accession. A licensing strategy for installations subject to the rules on integrated
pollution prevention and control (IPPC) needs to be developed, and permits issued and
complied with according to the
acquis
deadlines (until October 2007). Compliance with
major accident hazards needs to be ensured at the latest by accession, in particular as
regards gas bottling. Administrative structures are in place, but need considerable
strengthening both for permitting and inspection. As regards large combustion plants, a
transitional arrangement until 31 December 2005 has been agreed for certain installations
in Malta.
The legislation on
chemicals and genetically modified organisms
(GMOs) has been
transposed and is in line with the
acquis,
except for biocides, where there is delay.
Administrative capacities are in place, but co-ordination between the organisations
involved needs to continue to be enhanced.
In the area of
noise,
legislation is in place and is in line with the
acquis.
Administrative
capacities are in place but need further attention.
On
nuclear safety and radiation protection,
legislative alignment has been largely
completed and is in line with the
acquis,
except for medical exposure, which needs to be
transposed by accession. Administrative capacities in this area are largely in place.
However, the regulatory authority still has to be made operational.
Conclusion
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations, and subject to ensuring that administrative capacity is enhanced
in all sectors, is expected to be in a position to implement the
acquis
in the areas of
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horizontal legislation, air quality, water quality, industrial pollution and risk
management, chemicals and genetically modified organisms, noise
and
nuclear
safety and radiation protection
by accession. Malta needs to finalise the legal
alignment as regards the following areas: horizontal legislation, waste management,
water quality, industrial pollution and risk management, chemicals and nuclear safety
and radiation protection. It needs to complete air quality plans and programmes and
continue to enhance air quality and water quality monitoring. Moreover, Malta must
complete authorisations for discharges of dangerous substances and finalise necessary
programmes in the field of water. On industrial pollution and risk management, permits
for IPPC installations need to continue to be issued and complied with according to
acquis
deadlines, and implementation of provisions on major accident hazards
completed. As regards the overall administrative capacity in the above areas,
considerable further efforts are needed to ensure that the strengthening of administrative
capacity is completed on time before accession and in line with the commitments taken
during the negotiations to recruit more staff and enhance administrative capacity.
Particular attention needs to be paid so that the Maltese environment structures reflect
fully the duties and responsibilities arising from Malta’s obligation to implement the
acquis in all areas, including functioning of the Malta Environment and Planning
Authority.
Malta is partially meeting the commitments and requirements in the areas of
waste
management
and
nature protection.
As regards waste management, administrative
capacity requires considerable strengthening. Greater efforts are also required to align the
waste management plan fully with the
acquis
and to ensure that a supervision system for
waste shipments is set up by accession. Greater efforts are needed to ensure that
collection systems and recovery and disposal facilities are established in accordance with
Malta’s commitments. On nature protection, enhanced efforts are required to prepare the
lists of proposed nature protection sites and special bird protection areas, including the
completion of the consultation process. Considerable efforts are also needed to ensure
better enforcement of Malta’s commitments regarding the birds Directive. Producing an
enforcement strategy should be a priority of the national Ornis Committee.
Chapter 23: Consumer and health protection
The
acquis
covers protection of the economic interests of consumers (concerning
misleading and comparative advertisement, price indication, consumer credit, unfair
contract terms, distance and doorstep selling, package travel, timeshare, injunctions for
the protection of consumers’ interests, and certain aspects of the sale of consumer goods
and associated guarantees) as well as the general safety of goods (liability for defective
products, dangerous imitations and general product safety). Recently adopted legislation
includes rules on general product safety and distance marketing of consumer financial
services. The acceding countries need to effectively enforce the acquis through
appropriate judicial and administrative systems, including market surveillance and a role
for consumer organisations.
Malta’s legislation is largely in line with the acquis on
safety-related measures.
However, Malta still needs to ensure the entry into force of product liability directive and
to transpose the revised directive on general product safety. The administrative structures
are in place, but need to be strengthened in terms of both infrastructure and human
resources.
Market surveillance
relating to general product safety is largely developed.
Malta has created the relevant policy, management structures and information system;
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their co-ordination capacity is being improved. However, the capacity of the main bodies
in charge of market surveillance activities needs to be further developed.
As regards
non-safety related measures,
Malta has largely achieved alignment with the
acquis, although some fine-tuning of existing measures may still be necessary.
Implementing legislation is needed to finalise transposition of the acquis on price
indications and consumer credit. Enforcement activities relating to the protection of the
economic interests of consumers are partly developed. More efforts are being deployed
to implement the acquis effectively, in particular in the areas of public awareness about
consumer policy and consumer rights. The administrative structures need to be further
strengthened. This also applies to arbitration bodies, which play an important role in
solving consumer cases.
With regard to
consumer organisations
the role of non-governmental organisations is
being promoted in order to develop and implement consumer policy and to encourage
more active involvement in developing consumer product safety standards. Currently,
there is only one registered consumer organisation in Malta, whose financial and human
resources are limited. Efforts should be increased to raise consumers’ and businesses’
awareness of their rights and responsibilities and better involve the consumer
organisation in the process of building consumer protection in Malta.
Conclusion
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations in the areas of
safety-related measures
and
consumer
organisations
and is expected to be in a position to implement this acquis as from
accession. Malta still needs to finalise alignment with the revised directive on general
product safety and strengthen the role of consumer organisations in implementing the
consumer policy.
Malta is meeting the majority of the requirements for membership in the areas of
market
surveillance
and
non-safety related measures.
In order to complete preparations for
membership, Malta needs to strengthen the administrative capacity in the area of market
surveillance to ensure the proper enforcement of the necessary legislation of safety and
non-safety related measures. It should also complete alignment in the non-safety related
area.
Chapter 24: Justice and home affairs
The most developed part of this chapter is the Schengen acquis, which entails the lifting
of internal border controls. However, much of this acquis will not apply to the acceding
countries upon accession, but only after a later separate Council Decision. The Schengen
Implementation Action Plan aims at preparing this on the basis of a credible schedule for
the introduction of the Schengen provisions. Binding rules which must be put in place as
from accession include part of the rules on visas, rules on external borders and the acquis
on migration, asylum, police co-operation, combating organised crime, fight against
terrorism, fraud and corruption and drugs, customs co-operation as well as human rights
legal instruments. On issues such as border control, illegal migration, drugs trafficking
and money laundering, organised crime, police and judicial co-operation, data protection
and the mutual recognition of court judgements, acceding countries need to be equipped
to meet adequate standards of administrative capacity. The establishment of an
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independent, reliable and efficient judiciary and police organisation are also of
paramount importance.
Preparation with regard to Schengen provisions (Schengen
Action Plan)
relevant to
accession is broadly satisfactory, but efforts will be needed after accession to prepare for
the lifting of internal borders and for full implementation of the Schengen
acquis
on the
basis of a further decision to be taken by the Council. The Schengen Action Plan was
recently updated. Malta should continue with the further enhancement of equipment, in
particular passport readers at the points of entry. The lack of passport readers at Malta
International Airport as a main entrance gate to Malta should be addressed with urgency.
Although an IT programme has been established, preparations for integration into the
Schengen Information System (SIS) II are still at a preliminary stage, in terms of the
development of national applications. Malta should accelerate the implementation of this
programme and allocate sufficient financial means and manpower.
In the field of
data protection,
Malta has not yet completed its legislative alignment, in
particular concerning the use of personal data by the police. Further amendments to
legislation are therefore still needed in that respect. The responsible body, the data
protection Appeals Tribunal Board, has been set up.
Malta is broadly in line with the requirements of the EU acquis concerning
visa policy.
Malta has introduced visa requirements for Turkey, Marocco, Tunisia and Egypt, but still
has to make provision for introducing visas for Libya. Malta still has to align its policy as
regards the so-called “positive” visa list. As regards implementation capacity further
efforts are needed in relation to infrastructure, recruitment and training of staff, and
installation of information technology for the consulates. Some structural modifications
at the Tripoli embassy have been achieved. Malta also has to provide all diplomatic and
consular missions with equipment to detect forged and falsified documents.
As regards the management of the future
external borders,
the border controls and
surveillance are broadly satisfactory. Malta has signed bilateral co-operation agreements
with Cyprus, Egypt, France, Greece, Israel, Italy, Libya, Spain, Tunisia, Turkey and
Albania. A similar agreement is being negotiated with Morocco. Malta is in the process
of upgrading its equipment for border surveillance. The Maritime Squadron is equipped
with one state of the art offshore patrol. A second one is due to be delivered in 2004.
In the area of
migration,
legislative alignment has been completed on carrier liability,
illegal immigration and illegal employment, admission of self-employed persons and
family reunification. Apart from the right to work for students, Malta has aligned its
legislation on entry stay and work of third country nationals by accession. The
readmission agreement with Italy has entered into force and Malta is taking action to
conclude other readmission agreements with neighbouring countries. Administrative
structures are in place but Malta should strengthen and implement measures to combat
illegal immigration and extend legislation to cover the issue of detention procedures
concerning persons having received “deportation orders”, and persons whose entry has
been refused. A coherent training system for all migration services, as well as the
elaboration of guidelines for Malta’s migration policy has not yet been developed.
In the field of
asylum,
Malta has completed alignment with the
acquis
and the
geographical reservation has been lifted. Three remaining reservations (on refugee
seamen, naturalisation and public relief services to refugees) need to be lifted upon
accession. As regards implementation of the legislation further efforts are needed with
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regard to the accelerated procedure, legal assistance and the integration of recognised
asylum seekers. As a result of the length of the asylum procedure, asylum seekers are
kept in detention centres for several months. Although a call for applications has been
issued to strengthen the staff of the Refugee Commission in order to cope with the
increasing number of applications, substantial efforts are needed to speed up the
processing of applications and reduce the current backlog. Malta should accelerate its
preparation (technical and organisational) for active participation in EURODAC and
Dublinet, and take necessary measures for establishing the corresponding National
Action Points, in order to ensure full implementation by accession.
Furthermore, Malta needs to increase and improve its reception and detention capacity.
In the area of
police co-operation and combating organised crime,
Malta has an
accountable, reliable and fully co-ordinated police organisation. International co-
operation is continuously being strengthened. However, the conclusion of a co-operation
agreement with Europol is still pending. Once concluded, attention should be paid to the
timely preparation of national procedures in order to ensure the swift ratification of the
Europol Convention upon accession to the EU. Malta has also submitted a formal
application to participate in Europol as an observer prior to accession. Negotiations on
cooperation agreements related to fight against crime with Bulgaria and Ukraine have
been concluded, but are not yet signed. Negotiations on similar agreements are also
ongoing with thirteen other countries. Inter-agency co-operation does not seem a
problem, given the size of the island. Malta has signed but not yet ratified the UN
Convention against transnational organised crime and its first two protocols. The
Protocol against illicit manufacturing of and trafficking in firearms, their parts,
components and ammunition has not yet been signed.
In the
fight against terrorism,
Malta has ratified the most important Conventions in this
area, in particular the 1999 UN Convention for the Suppression of the Financing of
Terrorism. However, further legislative amendments are still necessary to comply with
the acquis and international standards on the fight against the misuse of the financial
system and terrorism financing. Furthermore, Malta should accelerate its preparatory
efforts in order to accede to the Convention on Mutual Assistance in Criminal Matters
between the EU Member States upon accession.
As regards the
fight against fraud and corruption,
Malta’s legislation is largely aligned
with the acquis, including the provisions of the 1995 Convention on the protection of the
European Communities’ Financial Interests and its Protocols. Full alignment with
Council Framework Decisions on the protection of the euro against counterfeiting should
be ensured. Malta has yet to designate a National Central Office, dealing notably with
banknote and coin analysis. Malta has signed the Council of Europe Civil and Criminal
Law Conventions on Corruption and will ratify them upon accession. As regards
corruption, see also
Section C.1. — Administrative and judicial capacity.
On the
fight against drugs,
Malta has largely completed its legislative measures and the
National Drug Strategy 2003-2004 has been adopted. Implementation, however, needs
further improvement, including the signature of a co-operation agreement with Bulgaria,
Slovenia and the UK. Malta participates in the activities of the European Monitoring
Centre for Drugs and Drug Addiction (EMCDDA) as an observer, and it is building its
capacity for active participation. The National Commission on the Abuse of Drugs,
Alcohol and other Dependencies will act as the Reitox focal point for EMCDDA.
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Following the enactment of the Prevention of Money Laundering Regulation in August
2003 under the Prevention of Money Laundering Act, Malta has completed its legislative
alignment with the
acquis
on
money laundering.
A Financial Intelligence Unit is in
place, but functioning needs to be monitored. Its information technology system needs to
be adapted and training on money laundering issues for judges and public prosecutors
should be enhanced (see
also Chapter 4 – Free movement of capital).
In the area of
customs co-operation,
Malta is in the process of aligning its legislation, in
particular to the Convention on Mutual Assistance and Cooperation between Customs
Authorities and to the Convention on the Use of Information Technology for Customs
Purposes. Co-operation and mutual assistance with member states and third countries has
started with the signature of bilateral Memorandum of Understanding with Italy, the UK
and France. Inter-agency co-operation is functioning well. However, Malta should
enhance investigative powers of customs officials. Co-operation with businesses on the
basis of memoranda of understanding needs to be further developed. Malta has started to
implement a new modern Information Technology System, including the enhancement of
the current risk analysis system.
In the area of
judicial co-operation in civil and criminal matters
legislative alignment,
where still necessary, is ongoing and Malta should be ready upon accession to apply it
and accede to the relevant conventions. Particular attention is needed for alignment with
Council Framework Decision of 13 June 2002 on the European arrest warrant and with
the surrender procedure between Member States. Administrative structures for direct
contacts between competent judicial authorities are in place and need to be further
strengthened.
As regards the
reform of the judiciary
in general, a detailed analysis is provided in
Section C.1. — Administrative and judicial capacity.
Malta has ratified all the
human rights legal instruments
under the justice and home
affairs acquis.
Conclusion
Malta is essentially meeting the commitments and requirements arising from the accession
negotiations and is expected to be able to implement
the acquis
in the areas of
data
protection, visa policy, external borders, migration, police co-operation
and
combating organised crime,
the
fight against terrorism,
the
fight against fraud and
corruption, drugs
and
money laundering, customs co-operation, judicial co-operation
in civil and criminal matters
and
human rights legal instruments
by accession.
Malta is partially meeting the commitments and requirements for membership in relation
to the
Schengen Action Plan
and
asylum.
In order to complete preparations for
membership, Malta needs to reduce the duration of the asylum procedures and to improve
the reception and detention capacities. Particular attention must be given to the technical
and organisational preparations necessary to fully implement EURODAC and Dublin II.
Furthermore, Malta needs to address the issue of the lack of passport readers at ports of
entry and accelerate preparation for SIS II.
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Chapter 25: Customs union
The Customs Union acquis consists almost exclusively of legislation which is directly
binding on the Member States and does not require transposition into national law. It
includes the Community’s Customs Code and its implementing provisions; the
Combined Nomenclature, Common Customs Tariff and provisions on tariff
classification, customs duty reliefs, duty suspensions and certain tariff quotas; and other
provisions such as those on customs control of counterfeit and pirated goods, drugs
precursors and cultural goods and on mutual administrative assistance in customs matters
as well as Community agreements in the areas concerned, including transit. Member
States must ensure that the necessary enforcement capacities, including links to the
relevant EC computerised customs systems, are in place.
Malta’s
customs legislation
is in line with the acquis as it stood in 2001, with the
exception of the provisions on customs duty reliefs and implementing provisions on
customs representation and free zones. Implementation of the remaining acquis
provisions, including the 2002 and 2003 acquis will take place upon accession, when the
EC customs legislation becomes directly applicable. At that time, legislation amending
the provisions applicable to Malta Freeport and a provision ending certain duty reliefs in
the Business Promotion Act should also come into effect to avoid any legal conflict with
the
acquis.
National provisions superseded by the acquis are to be repealed at the time of
accession and agreements on mutual administrative assistance in customs matters are to
be amended as necessary.
In the course of negotiations, Malta obtained a transitional period relating to the
application of the Common Customs Tariff with regard to the importation of certain
textile products until 31 December 2008.
Concerning
administrative and operational capacity,
a functioning customs
administration is in place. Malta should continue to carry out its plans for reorganisation
of its customs department and continue preparations for the application of measures and
provisions that will be introduced only at the time of accession. These include in
particular the change in emphasis from clearance to post-clearance controls, as well as
the introduction of Community Transit, rules of origin under Community preferential
agreements and arrangements, and simplified procedures and valuation rules. Customs
offices’ capacity to combat fraud and economic crime, in close co-operation with other
enforcement bodies, should continue to be strengthened.
Malta must complete the development and implementation of the computerised customs
system and solve all the other interconnectivity-related issues.
Conclusion
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations in the
customs union
area and is expected to be in a position by
accession to implement the relevant acquis with the necessary administrative and
operational capacity subject to completion of its preparations by the time of accession. In
completing its preparation for membership, Malta needs to continue the development and
implementation computerised customs systems and interconnectivity-related issues, and
to complete training on measures and provisions which will be introduced at the time of
accession.
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Chapter 26: External relations
The main element in this chapter, the common commercial policy, is made up of directly
binding EU legislation, which does not require transposition into national law. The
acceding countries were requested to align before accession with the acquis on dual-use
goods and, where applicable, export credits. Acceding countries committed themselves to
ensure compatibility with the
acquis
of their bilateral agreements with third countries. In
the area of humanitarian aid and development policy, countries need to ensure the
capacity to participate in the EU’s development and humanitarian policies.
The administrative structures for dealing with the issues related to the
common
commercial policy
are in place and sufficient.
Malta has co-ordinated its positions and policies with the Commission with regard to the
Doha Development Agenda. Malta should continue close co-ordination and co-operation
with the Commission, mainly in order to carry on preparing the convergence of its GATS
commitments and Most Favoured Nation exemptions into the EU ones (consolidation EU
25), to be finalised upon accession.
On trade in dual-use goods, following the adoption last year of regulations aligning its
legislation with the
acquis,
Malta has now an appropriate administrative capacity to
implement it with the setting up of the Trade Services Directorate within the Ministry for
Economic Services. Further alignment, in particular regarding the list of dual-use items,
needs to be achieved, as export control regimes continue to adopt decisions, which the
EU integrates into its legislation. Membership in all export control regimes is a crucial
factor enabling implementation of export controls by Malta. Based on the Thessaloniki
Action Plan to support the acceding countries’ membership in export control regimes, the
EU supports Malta’s accession to the regimes to which it has already applied. Full
alignment as regards the Community general export authorisation can only take place
upon accession.
As regards export credits, Malta has achieved a high degree of alignment with the
acquis
and an adequate administrative capacity is in place within the Malta Financial Services
Authority (MFSA). MFSA still needs to finalise and issue a draft insurance directive to
complete alignment in this area.
Malta still needs to complete the analysis of its
bilateral agreements with third
countries
to terminate or renegotiate those agreements that are found to be incompatible
with the acquis. The Authorised Destination Status agreement in the tourism sector
between Malta and China will be superseded by the EU Authorised Destination Status
agreement with China when the latter one enters into force.
In the area of
humanitarian aid and development policy,
there is no policy framework
in force yet. Malta needs to ensure that there is a development policy in line with EU
principles, in particular with the guidelines laid down by the OECD Development
Assistance Committee, as well as the commitments and objectives that Malta has
approved in the context of UN and other international organisations. Further efforts are
needed to ensure that the administrative capacity for Malta’s participation in EU
committees and working groups for development co-operation is in place upon accession.
Conclusion
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Malta is essentially meeting the commitments and requirements arising from the
accession negotiations and is expected to be able to implement the
acquis
on the
common commercial policy
and
humanitarian aid and development policy.
Malta
should take further steps to develop a development policy framework in line with EU
principles.
Malta is meeting the majority of the commitments and requirements for membership in
relation to
bilateral agreements with third countries.
In order to complete preparations
in this area, Malta must take decisive steps towards renegotiating or terminating its
bilateral agreements to make sure that they are compatible with the
acquis
upon
accession.
Chapter 27: Common foreign and security policy
The acquis related to the common foreign and security policy (CFSP) is essentially based
either on legally binding international agreements or on political agreements to conduct
political dialogue in the framework of CFSP, to align with EU statements, and to apply
sanctions and restrictive measures where required.
Malta has the required administrative capacity to participate in the
political dialogue.
With regard to alignment with
EU sanctions and restrictive measures, statements,
declarations and démarches,
Malta has the required legislative framework and
administrative capacity in place.
Conclusion
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations in the chapter on the
common foreign and security policy,
and is
expected to be able to participate in the political dialogue and to align with EU
statements, sanctions and restrictive measures by accession.
Chapter 28: Financial control
The acquis under this chapter consists mostly of general, internationally agreed and EU-
compliant principles of public internal financial control that need to be transposed into
the control and audit systems of the entire public sector. In particular, the acquis requires
the existence of adequate ex ante financial control and functionally independent internal
audit systems; an independent external audit of the public internal financial control
systems in the public sector; an appropriate financial control mechanism for EU pre-
accession funding and future structural action expenditure; and arrangements on the
protection of EC financial interests. In addition, an anti-fraud co-ordination service,
capable of co-operating with the Commission’s Anti-fraud Office OLAF at an
operational level, is to be designated.
In the area of
public internal financial control,
the framework and implementing
legislation is in place, and broadly in line with the acquis. The 1962 Act on Financial
Administration and Audit has to be replaced by a new Public Financial Management Act.
The Internal Audit and Investigation Directorate (IAID) is adequately staffed and has
reached sufficient administrative capacity in that area.
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In the field of
external audit,
framework and implementing legislation is in place and in
line with the acquis. The National Audit Office is functionally and operationally
independent. It has been steadily reinforced over the years and its capacity is broadly
satisfactory.
As regards
control over structural action expenditure,
framework and implementing
legislation is in place and in line with the acquis. Appropriate administrative structures
have been set up. The strengthening of administrative capacity is on track, with the
exception of the Directorate General of Contracts whose EU department needs further
strengthening. Malta needs to continue its efforts to implement the extended
decentralised implementation system (EDIS) for Ispa and Phare.
In the area of the
protection of EC financial interests,
Malta has designated the Internal
Audit and Investigation Department (IAID) as the Maltese anti-fraud co-ordinating
service (AFCOS). An administrative co-operation arrangement was agreed with OLAF in
2003. Malta has reinforced the framework and implementing legislation, in particular
through the adoption of the Internal Audit and Investigations Act. Full effect should be
given to the AFCOS’ operational capacity and effective co-operation with other relevant
institutions and bodies, including OLAF.
Conclusion
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations in the area of
financial control
and is expected to be in a position
to implement the
acquis
in this area as from accession. As regards protection of EC
financial interests, the administrative and operational capacity of the anti-fraud co-
ordination service should now be demonstrated in practice. In the area of control over
structural action expenditure, Malta needs to further strengthen the relevant department
of the Directorate General of Contracts. Efforts must continue to ensure sustainable
implementation of the extended decentralised implementation system.
Chapter 29: Financial and budgetary provisions
Chapter 29 covers the rules concerning the financial resources necessary for the funding
of the EC budget (‘own resources’). These own resources are made up mainly from
contributions from Member States based on 1) traditional own resources from customs
and agricultural duties and sugar levies, 2) a resource based on VAT and 3) a resource
based on the level of gross national income (GNI). Member States must ensure the
creation of appropriate administrative capacity to adequately co-ordinate and ensure the
correct calculation, collection, payment and control of own resources and reporting to the
EU for implementation of the own resources rules.
As regards the
traditional own resources (TOR),
a national reporting system on cases
of fraud and irregularity has been established and the Customs House will be responsible
for reporting on cases of fraud or irregularities (OWNRES) in Malta. Malta must verify
that all the necessary data for the OWNRES system are already available or establish
how these will be collected. Procedures and systems for A and B accounts have been
developed and will be finalised by the end of 2003. The implementation of the new
electronic e-customs IT solution, which will contain the accounting system for A and B
statements, needs particular attention.
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As regards the
VAT-based resource,
further improvements and refinements are still
needed with regard to the correct calculation of the harmonised VAT base, in particular
the calculation of the weighted average rate in accordance with ESA95.
For calculation of the
GNI-based resource,
continued efforts are needed to further
implement ESA95 and improve the quality and reliability of the national accounts and
GNI calculations, including their exhaustiveness.
All institutions necessary for application of the own resources system exist and a unit
within the Ministry of Finance headed by the Director General co-ordinates own
resources issues.
Conclusion
Malta is essentially meeting the commitments and requirements arising from the
accession negotiations in the area of
financial and budgetary provisions
and is
expected to be in a position by accession to implement the relevant acquis. Malta should
now focus attention on completing preparations under this chapter by further improving
the reliability of GNI statistics, improving the calculation of the harmonised VAT base,
completing the collection of the necessary data for the OWNRES system and
implementing the new electronic e-customs IT solution.
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D.
C
ONCLUSION
Economic activity remained weak, affected by low external demand and the downturn in
the tourism sector. Progress with structural reforms has been mixed.
As regards the areas, where last year’s report suggested improvements, some progress
has been made, but challenges remain. Very substantial efforts are necessary to guarantee
the sustainability of public finances in the medium term. Although restructuring of public
enterprises is under way, more far-reaching measures need to be implemented, leading to
higher productive efficiency and supporting fiscal consolidation. The level of non-
performing loans in the banking sector remains high, although several steps have been
taken to improve supervision and credit assessment.
As regards overall administrative and judicial capacity, sufficient conditions are in place
for the implementation of the
acquis
by the Maltese public administration and judiciary,
but there is room for further improvements. In the field of public administration, the
current efforts to bring about more efficiency and accountability across the public service
need to be continued. The reform of the judiciary needs to be pursued in order to further
decrease the backlog of pending judiciary cases and improve the functioning of the small
claims tribunal. As regards the fight against corruption, Malta should adopt a
comprehensive anti-corruption strategy, taking into account the recommendations of the
Council of Europe's Group of States against Corruption. As far as translation of the
acquis
into Maltese is concerned, the number of revised texts prepared by Malta must
increase greatly in the coming period up to accession.
As regards the implementation of the
acquis
in specific policy areas, the findings of this
report are set out below.
Firstly, it should be noted that Malta has reached a
high level of alignment with the
acquis
in most policy areas.
It is expected to be in a position to implement the
acquis
as required in the following
areas by accession: horizontal and procedural measures, new approach and old approach
legislation in the
free movement of goods
chapter; citizens’ rights, free movement of
workers and co-ordination of social security systems, in terms of
free movement of
persons;
banking, insurance, investment services and securities markets, protection of
personal data and information society services in the area of
freedom to provide services;
the
free movement of capital,
including money laundering;
company law
and accounting;
anti-trust legislation in the area of
competition.
In the area of
agriculture,
Malta is
expected to be in a position by accession to implement the
acquis
as regards quality
policy and state aid; in common market organisations as regards arable crops, milk,
sheepmeat and pigmeat, and eggs and poultry, and in some veterinary issues including
animal disease control and trade in live animals and animal products, animal welfare and
zootechnics; and in
fisheries,
in the areas of resource and fleet management, inspection
and control, market policy, state aid and international agreements.
Malta is also expected to be in a position to implement the acquis by accession in: the
transport
sector as regards the trans-European transport networks, road and air transport;
VAT, excise duties, and administrative co-operation and mutual assistance in the field of
taxation; economic and monetary union; statistics;
labour law, equal treatment of women
and men, social dialogue, employment policy, social inclusion and social protection in
the area of
social policy and employment;
the
energy
sector;
industrial policy; small and
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medium-sized enterprises; science and research; education and training; culture and
audio-visual policy; regional policy and co-ordination of structural instruments
as
regards institutional structures and programming; in the
environment
chapter as regards
horizontal legislation, air quality, water quality, industrial pollution and risk
management, chemicals and genetically modified organisms, noise, and nuclear safety
and radiation protection; safety-related measures and consumer organisations in terms of
consumer and health protection;
almost all aspects of
justice and home affairs; customs
union;
the common commercial policy and humanitarian aid and development policy in
the
external relations acquis; common foreign and security policy; financial control;
and
financial and budgetary provisions.
Secondly, in certain areas Malta partially meets the commitments and requirements and
needs to make
enhanced efforts
in order to complete its preparations for accession.
This includes public procurement and the non-harmonised area on the
free movement of
goods;
requirements for mutual recognition of professional qualifications in terms of
free
movement of persons;
the right of establishment and the freedom to provide non-financial
services in the area of
free movement of services;
and, within the area of
company law,
the protection of intellectual and industrial property rights. In the
agriculture
area, it
concerns organic farming and the farm accountancy data network; the common market
organisations for wine and alcohol, beefmeat, fruit and vegetables and olive oil; rural
development; in the veterinary field, as regards veterinary control systems, public health
in agri-food establishments, common measures, animal nutrition; phytosanitary issues;
and as regards structural actions in the
fisheries
policy.
This also includes the fields of: direct
taxation;
health and safety at work, public health,
the European Social Fund, and anti-discrimination in the area of
social policy and
employment; telecommunications and information technologies
including postal services;
the legislative framework and financial management and control for
regional policy and
co-ordination of structural instruments;
legislative alignment and implementation in
waste management and nature protection as concerns
environment
policy; market
surveillance and non-safety measures in the area of
consumer and health protection;
the
Schengen Action Plan, and asylum in the area of
justice and home affairs; external
relations,
as regards bilateral agreements with third countries.
Thirdly, Malta must take immediate and decisive action to address six issues of
serious
concern
in three chapters of the
acquis
if it is to be ready by the date of accession.
This concerns the field of state aid in the
competition policy
chapter, where Malta must
enhance its efforts to implement its commitments regarding the restructuring of its
shipyards. It also concerns the field of
agriculture,
as regards the setting up of a Paying
Agency, the implementation of the Integrated Administration and Control System,
external trade mechanisms, and transmissible spongiform encephalopathies (TSEs) and
animal waste treatment. Finally, it concerns the
transport
field, as regards maritime
safety.
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S
TATISTICAL ANNEX
1998
Basic data
Total Population (Maltese & Foreigners)
Total area
National accounts
Gross domestic product at current prices
Gross domestic product at current prices
Gross domestic product per capita a) at current
prices
Gross domestic product at constant prices (nat.
currency)
Employment growth
Labour productivity growth
Unit labour cost growth
Gross domestic product per capita a) at current
prices
GDP per capita a) at current prices in PPS
Labour productivity (GDP per person employed in
PPS)
Structure of production
- Agriculture
- Industry (excluding construction)
- Construction
- Services
Structure of expenditure
- Final consumption expenditure
- household and NPISH
- general government
- Gross fixed capital formation
- Stock variation b)
- Exports of goods and services
- Imports of goods and services
Inflation rate
Consumer price index c)
1,362
3.1
8,100
386.4
315.6
1999
388.7
315.6
2000
in 1000
391.4
in km²
315.6
2001
394.5
315.6
2002
397.3
315.6
Mio Malta Lira
1,456
3.4
8,800
1,563
3.9
9,900
1,634
4.1
10,300
1,675
4.1
10,400
1000 Mio ECU/euro
in ECU/Euro
% change over the previous year
3.4
-0.1
3.4
-0.5
11,100
4.1
0.7
3.3
-0.9
11,700
:
6.4
1.2
5.6
-3.0
:
-1.2
1.4
-2.6
3.8
:
1.2
-0.7
1.9
-0.9
in Purchasing Power Standards
in % of EU-15 average
54
69
55
71
:
:
:
:
:
:
% of Gross Value Added
2.7
25.0
2.8
69.5
81.9
62.1
19.8
24.5
-0.8
87.7
93.2
2.5
24.9
2.4
70.2
81.6
62.8
18.7
23.4
0.7
90.7
96.3
2.3
26.6
2.5
68.5
82.4
63.8
18.6
26.2
2.1
102.7
113.5
2.6
24.5
2.8
70.2
84.1
64.0
20.1
23.2
-3.0
87.4
92.2
2.8
25.0
3.1
69.2
85.1
64.7
20.4
23.2
-4.0
85.5
89.2
as % of Gross Domestic Product
% change over the previous year
3.7
2.3
3.0
2.5p
2.2p e)
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1998
Balance of payments
-Current account
-Trade balance
Exports of goods
Imports of goods
-Net services
-Net income
-Net current transfers
-
of which: government transfers
- FDI (net) inflows
Public finance
General government deficit/surplus
General government debt
Financial indicators
Gross foreign debt of the whole economy
Gross foreign debt of the whole economy
Monetary aggregates
- M1
- M2
- M3
Total credit
Average short-term interest rates
- Day-to-day money rate
- Lending rate
- Deposit rate
ECU/EUR exchange rates
- Average of period
- End of period
- Effective exchange rate index
Reserve assets
-Reserve assets (including gold)
-Reserve assets (excluding gold)
External trade
Trade balance
Exports
Imports
Terms of trade
Exports with EU-15
Imports with EU-15
-742
1,637
2,379
99.1
52.8
69.3
1,449
1,448
0.435
0.442
105.1
:
5.4
5.5
1.2
4.4
5.0
3.8
-194
-528
1,629
2,156
340
-58
51
2
238
1999
-116
-537
1,891
2,428
351
30
40
-8
770
2000
in Mio ECU/euro
-576
-673
2,689
3,363
252
-171
16
1
674
2001
-190
-547
2,235
2,782
354
-6
9
9
350
2002
-159 f)
:
:
:
:
:
:
:
:
in % of Gross Domestic Product
-10.8
64.9
-8.2
60.8
-7.0
61.3
-6.8
66.1
-6.2p
66.4p
in % of Gross Domestic Product
92.3
107.5
160.2
135.4
as % of exports
105.2
118.5
1.4
5.2
5.9
4.5
5.0
:
5.5
0.426
0.415
156.1
1.5
5.5
6.2
5.0
4.7
7.4
5.3
0.404
0.408
155.0
1.6
6.2
6.9
5.8
4.7
7.0
5.2
0.403
0.399
107.9
1,904
1,902
:
:
1.6
6.6
7.3
5.8
4.1
6.4
4.7
0.409
0.418
107.6
2,106
2,105
1000 Mio ECU/euro
% per annum
(1ECU/euro=..Malta Lira)
1995=100
105.2
106.7
Mio ECU/euro
1,783
1,782
1,581
1,580
Mio ECU/euro
-809
1,858
2,667
99.8
48.7
65.4
-1,039
2,657
3,696
103.5
33.5
59.9
-855
2,188
3,043
92.8
47.8
63.6
-775
2,214
2,989
96.5
46.6
67.0
corresponding period of the previous year=100
as % of total
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1998
Demography
Natural growth rate
Net migration rate (including corrections)
Infant mortality rate
Life expectancy :
Males:
Females:
Labour market (Labour Force Survey)
Economic activity rate (15-64)
Employment rate (15-64), total
Employment rate (15-64), males
Employment rate (15-64), females
Employment rate of older workers (55-64)
Average employment by NACE branches
- Agriculture and forestry
- Industry (excluding construction)
- Construction
- Services
Unemployment rate, total
Unemployment rate, males
Unemployment rate, females
Unemployment rate of persons < 25 years
Long-term unemployment rate
Social cohesion
Inequality of income distribution
Early school-leavers
Population in jobless households (persons aged
0-65)
Standard of living
Number of cars d)
Main telephone lines
Number of subscriptions to cellular mobile
services
Infrastructure
Railway network
Length of motorways
.
.
450
497
49
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
74.4
80.1
3.2
6.5
5.3
1999
2.8
8.0
7.2
75.1
79.3
2000
3.0
8.5
6.1
at birth
74.3
80.2
2001
2.4
8.5
4.4
76.1
80.9
2002
2.0
7.5
6.0
75.8
80.5
Per 1000 of population
Per 1000 live-births
% of population
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
in % of total
:
:
:
:
% of labour force
7.0
6.6
7.8
:
2.9
:
6.7
6.1
8.0
7.4
6.4
9.8
15.2
:
:
:
:
2.3p
23.9p
7.7p
66.1p
:
54.2
76.4
31.6
31.0
:
:
:
:
59.2
as % of the total population of the same age group
ratio of top quintile to lowest quintile
:
:
:
:
:
4.5
:
54.1E
:
:
52.7E
:
% of population aged 18-24
% of population aged 0-65
per 1000 inhabitants
466
509.3
62.6
481
528.4
289.8
492
534.7
605
505
531.5
785.5
in km per 1000 km²
.
.
.
Km
.
.
.
.
.
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1998
Industry and agriculture
Industrial production volume indices
Gross agricultural production volume indices
Innovation and research
Spending on Human
expenditure on education)
Resources
(public
5.21
110.5
102.5
1999
107.0
96.8
2000
116.2
95.4
2001
93.2
95.5
2002
:
100.1
previous year=100
as % of GDP
5.10
4.61
4.74E
6.56E
as % of GDP
Gross domestic expenditure on Research &
Development
Level of Internet access - households
Environment
Total greenhouse gases emissions
Energy intensity of the economy
Share of renewable energy
Modal split of freight transport
p = provisional figures
E=estimated data
s=EUROSTAT estimate
:
:
:
per 1000 inhabitants
:
:
11.2
:
:
:
:
tonnes CO2 equivalent per capita
122ps
347.8
:
100
126ps
332.3
:
100
129ps
396.0
:
100
:
:
:
100
:
:
:
:
kg of oil equivalent per 1000 euro of GDP
as % of total electricity consumption
as % of total freight transport
a) Figures have been calculated using the population figures from National Accounts, which may differ from those used in
demographic statistics.
b) These figures include changes in inventories, acquisitions less disposals of valuables and the statistical discrepancy
between the GDP and its expenditure components.
c) For Malta the national consumer price index is given, which is not strictly comparable with the interim HICPs
d) Registered cars.
e) Retail Price Index. Source: Website of Statistical Office.
Source: Website of Statistical Office
Methodological notes
Inflation rate
Price Index
The Maltese Retail Price Index is a Laspeyre’s Index with base 1995=100. The index weights were derived
from a year-long household budget survey held in 1994. The index "basket" is composed of some 530
items for which direct and monthly price observations are carried out by Central Office of Statistics (COS)
field officers. The Index is also used for the measurement of local inflation rates.
Finance
Public finance:
The government deficit and debt statistics of the Candidate Countries are provisional, in
the sense that they do not yet fully comply with EU methodological requirements. Broadly speaking, the
general government deficit / surplus refers to the national accounts concept of consolidated general
government net borrowing / net lending of ESA95. General government debt is defined as consolidated
gross debt at end-year nominal value. The series are available from 1997; the 1996 data are an
approximation derived from the IMF’s GFS methodology.
External trade
Imports and exports (current prices).
Trade data is based mainly on the general system although Malta
uses also the special system. Figures exclude transhipment trade (direct re-exports), customs free zones,
licences, know-how patents and services. The value of imports is in CIF/CF and exports in FOB.
Terms of
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trade.
Calculated as Unit Value Index of Export divided by Unit value Index of Imports.
Imports and
exports with EU-15.
Data declared by Malta.
Labour market
Indicators are harmonised annual figures with the exception of average employment by NACE branches
and unemployment rate of persons < 25 years, which are for the 2
nd
quarter of the respective year. The
results are based on the European Union Labour Force Survey (LFS). The EU LFS is conducted on a
quarterly basis in accordance with Council Regulation (EEC) No. 577/98 of 9 March 1998.
For
details
please
refer
to
the
following
link
on
the
Eurostat
website:
http://europa.eu.int/newcronos/suite/info/notmeth/en/theme1/strind/emploi.htm
Social cohesion
For
details
please
refer
to
the
following
link
on
the
Eurostat
website:
http://europa.eu.int/newcronos/suite/info/notmeth/en/theme1/strind/socohe.htm
Innovation and research
For
details
please
refer
to
the
following
link
to
the
Eurostat
website:
http://europa.eu.int/newcronos/suite/info/notmeth/en/theme1/strind/innore.htm
Environment
For
details
please
refer
to
the
following
link
to
the
Eurostat
website:
http://europa.eu.int/newcronos/suite/info/notmeth/en/theme1/strind/enviro.htm
Sources
Total area, External trade,. Demography, Standard of living, Infrastructure, Industry and agriculture:
National sources. Other indicators: Eurostat.
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