“We need to ensure that our economic development is not only aided through the use of European Union funds. We must also look towards allowing such funds to contribute towards a more sustainable economic model for Malta.”
Minister Carmelo Abela was speaking during MEUSAC’s Core Group meeting, during which Malta’s European Union budgetary allocation was discussed with social partners and civil society representatives.
Minister Abela emphasised the importance of the digital revolution and the European Green Deal as being integral not only for the European economy, but also for Malta’s own industrial development. He noted that this will also ensure that Europe can continue saving jobs after the pandemic. Malta has, throughout all this, been able to reduce its unemployment rate, with less than 4,000 people currently looking for employment.
Robert Camilleri, Director of the Budget Affairs Division within the Ministry for Finance and Financial Services, made a detailed presentation on the proposal which were agreed upon during the Special European Council Meeting.
He explained that the European Union’s expenditure for 2021-2027, which comes to a total of €1,824.3 billion, includes an allocation of €1,074.3 for the European Union’s Multiannual Financial Framework (MFF), and €750 billion for the Next Generation EU programme.
35% of the MFF allocation is dedicated to cohesion and resilience, while another 33% is dedicated to natural resources and environmental programmes. These allocations are quite significant and underpin the European Union’s commitments for the coming years.
The Next Generation EU programme would see the European Commission issue bonds on the international markets, with proceeds going to new MFF instruments and towards European Union countries to facilitate their reform and resilience plans. The repayment period is expected to be in place until 2058.