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Brussels, 18 December 2003

Commission agrees on the strategy to implement structural funds in Malta for 2004-2006

The European Commission confirmed today that the negotiations on the strategy for the implementation of structural funds in Malta for the period 2004 to 2006 have been successfully concluded. These negotiations have resulted in an agreement on the priorities for economic and social development strategy for Malta that will be supported with community funding during the period 2004-2006. Malta will benefit from Community co-financing of € 63.2 million during the same period. This strategy covers the priorities and the measures that will be eligible for community co-financing as of 1 January 2004 provided that projects on the ground ensure full compliance with Community legislation in areas such as regional policy, environmental protection, public procurement and financial management and control. The programming documents will only be formally approved upon accession of Malta on 1 May 2004. During the same period, the cohesion fund will make an additional € 22 million available for Malta to co-finance infrastructures in the environment and transport sectors.

In announcing the decision, Michel Barnier, Commissioner for regional policy and institutional reform, stressed the progress made by Malta in its preparation for the future management and implementation of structural funds programmes. Furthermore, he highlighted "the fruitful and constructive partnership and spirit of cooperation with Malta in developing the strategy for the structural funds". Mr Barnier also expressed the wish that "this collaboration will continue during the next phase to ensure the efficient and rigorous implementation of the programmes in Malta". He underlined that the agreement foresees a concentration of resources on four priorities, noting that "it will facilitate the achievement of the overall goals of this strategy, including and increase in GDP and reduction in unemployment. Malta has now to ensure that all relevant legislation is in force so that the implementation of the programmes can start in January 2004, as provided for in the Treaty of Accession."

The strategy and the priorities seek to promote development and structural adjustment in Malta. The programme is based on four priorities :

  • strategic investments and the strengthening of competitiveness in Malta: such as improvements in the environment sector with a strong focus on water quality and waste disposal and support to small and medium-sized enterprises in the manufacturing and tourism sectors with a Community contribution of € 39.5 million;

  • human resources development: such as supporting the inclusion in the labour market of people with disability and developing life long learning with a Community contribution of € 8.8 million;

  • rural development and fisheries: improvement of the processing and marketing of products, renewal and modernisation of the fleet, supporting aquaculture and fishing port facilities with a Community contribution of € 7 million;

  • special support to the island of Gozo: such as the upgrading of transport infrastructure, supporting the tourism sector and the upgrading of education centres with a Community contribution of € 6.5 million.

In addition an amount of € 1.4 million will be made available for technical assistance.


Solidarity among the peoples of the European Union, economic and social progress and reinforced cohesion form part of the Community's overall objectives of "reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions", as laid down in the Treaty establishing the European Communities. The instruments of solidarity, the structural funds and the cohesion fund cover about one third of the EU budget (roughly EUR 36 billion in 2004) and have a major impact on the competitiveness of regions and contribute significantly to improving the living conditions of their citizens, particular in the poorer regions. Most of the funding is spent through multi-annual development programmes, managed jointly by the Commission services, the Member States' and regional authorities. It is to be stressed that the selection of projects to be co-financed by these programmes is the competence of national, regional and local authorities, in application of the subsidiarity principle.

For the period between 2004 and 2006, € 22 billion have been earmarked for all structural instruments in the 10 countries acceding to the EU on the 1 May 2004. The Treaty of Accession provides that the acceding countries may benefit from the eligibility of expenditure under structural funds as of 1 January 2004 where all the conditions laid down in the structural funds and cohesion fund regulations are fulfilled. These conditions concern full compliance with the implementation rules for the Structural and Cohesion Funds, as well as with Community policies and legislation in areas ranging from environmental protection, public procurement, elimination of inequalities, transport policy to competition and state aid.

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