Malta
& the European Union: Experience in Maximizing Negotiating
Capacity for Possible Entry into the Union.
Prof. Dietrich Kappeler
Director
Diplomatic Studies Programme
Graduate Institute of International Studies
Note: This presentation was to be made by
Mr. John Paul Grech, of the Ministry of Foreign Affairs of
Malta, representing the Mediterranean Academy of Diplomatic
Studies. Unfortunately, he had to cancel his attendance. The
presentation that follows is based on experience acquired during
the author's presence in Malta from 1990 to 1994, as Director of
the Mediterranean Academy of Diplomatic Studies, and subsequent
visits in his capacity of Chairman of the Academy's Board.
Presentation for the Colloquium Entitled "Diplomacy
After 2000: Small States and Negotiating Space in the New
International Trading Environment" organised by the Institute of
International Relations , UWI for the 8th
and 9th of October,1996
Contents
Background
Malta's Situation with regards
to the E.U.
Problems
Preparation for the
Negotiations
Malta is a small archipelago of 3 islands situated in the very
centre of the Mediterranean. Its overall surface is about 300
square kilometres and its population 385 000. Malta has no
natural resources and its agriculture and fishing sector is
negligible. In the secondary sector, the reconverted dockyards
are still an important employer. Small labour-intensive
industries in the fields of textiles and furniture-making were
created during the 1970s but are now declining. On the other
hand, manufacturing and assembly in the electronics sectors are a
growth industry. Malta has exploited its geographic position to
become a regional container distribution centre. Long-distance
ships unload their containers which are then taken up by smaller
ships bringing them to their various final destinations in the
Mediterranean region. They collect containers which are brought
to Malta and then transferred to long-distance carriers for
overseas destinations. However tourism remains the main source of
income, both locally and as earning foreign exchange is
concerned. Much more than 1 million tourists visit Malta each
year. The industry is now trying to move from low-cost tourism to
higher categories. Finally, Malta has created first class
communication facilities and adopted liberal laws with a view to
becoming a service and offshore business centre for the
Mediterranean.
After her independence in 1964, Malta concluded an Association agreement with the then European Economic Community in 1970, which was to lead to a customs union at a later stage. However, the Government in power from 1971 to 1987 did not favour close integration with the EEC, so that the association status was maintained until 1990, when a formal application for membership was made by the present Government. The European Commission issued a favourable Avis in June 1993. It indicated the areas where Malta would have to make adjustments in order to meet membership requirements and recommended the initiation of a negotiation process. It further decided that the application of Malta was to be handled together with that of Cyprus, also presented in 1990.
Malta's Situation with regard to
the E.U.
Over 75% of Malta's trade is with the E.U. and 80% of the
tourists visiting Malta come from member countries of the latter.
The exchange rate of the country's national currency, the Lira,
is based on a basket in which the ECU counts for 67% Thus the
Maltese economy is already very much imbricated with that of the
EU. In most economic sectors, membership of the latter is
expected to act as a stimulant, and according to one study, it
could produce up to 3000 additional jobs, a substantial number
for an overall population of 385 000.
In its Avis the European Commission identified a number of sectors where the Maltese legislation has to be adapted to European standards. This process is under way but far from completed. In part this is due to the fact that the formal negotiating process has not yet been launched, so that all efforts undertaken so far are based on preliminary studies and contacts.
The two major political parties, the Nationalist Party
currently in power and the opposition Labour Party, are deeply
divided over the membership issue. Whereas the former feels that
Malta would be considerably strengthened in all regards by
becoming a member of the EU, the opposition fears that she might
thereby lose her unique position as an intermediary in the
Mediterranean region. The snap election just called by the
Government is in part meant to provide it with a renewed mandate
to negotiate EU membership.
The Maltese application as such does not pose any major problems to the EU, but it has to be seen in the context of the eventuality of 5 and more forthcoming applications from Eastern European countries. This means that a discussion on institutional reform may have to be completed beforehand, which might reach the conclusion that Malta should not be entitled to have a member sitting on the Commission.
Preparation for the Negotiation
Immediately after submitting its application, the Government
of Malta set up a European Directorate within the Ministry of
Foreign Affairs to coordinate all matters related to the proposed
accession. At the same time, the Mission in Brussels was
considerably reinforced. The European Directorate is in constant
contact with the office of the Permanent Representative of the EU
in Malta, which during the negotiating period is to provide it
with all assistance it can. The Institute of European Studies at
the University of Malta has been upgraded and is provided by the
EU mission with all materials, including the successive versions
of Eurolex on CD-ROM.
Under a programme devised by the Unit for IT Applications in
Diplomacy of the Mediterranean Academy of Diplomatic Studies and
executed in close cooperation with the Management Systems Unit of
the Government of Malta, the Ministry of Foreign Affairs has been
fully computerized and connected with missions abroad over the
Internet. The Ministry is also linked to computer systems of
other government departments, which can thus be associated with
preparatory work and be made to communicate online with the
Ministry and the Mission in Brussels.
Once the actual negotiating process will be underway and the corresponding funds to assist Malta in it will be available from the EU, special training programmes will be launched to familiarize the Maltese administration with all aspects of European laws and regulations and their impact on the working of the Maltese legal order and administrative practice. In cooperation with relevant associations of the private sector, members of the latter shall also be offered short familiarization programmes in order to become able to fully exploit opportunities offered by membership. The Mediterranean Academy of Diplomatic Studies is finalizing negotiations with the European Commission for the creation of a EU Chair of economic diplomacy and relations, which would coordinate all these efforts.
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