Author: SME Chamber

GRTU Malta Chamber of SMEs was very
satisfied with the meeting held last Wednesday with important leaders from the
new administration. GRTU was given the opportunity to voice its concerns and
proposals on various issues, many of which, we were assured directly by the
Ministers concerned, have already started to be tackled.

The general feeling
was that the Prime Minister and his Ministers understood and appreciated the
views presented and therefore we are confident that the outcome was a positive
one. GRTU officials will now follow up on the implementation.

This was the first formal
meeting with the Prime Minister since the change in administration; in the run
up to this important meeting GRTU has however met the Ministers, Parliamentary
Secretaries and the Principal Permanent Secretary individually. Last Wednesday
the GRTU Executive Council and top officials met not only with the Hon Prime
Minister Joseph Muscat but also the Minister for the Economy, Investment and
Small Business Hon Chris Cardona, the Minister for Sustainable Development, the
Environment and Climate change Hon Leo Brincat, the Minister for Energy and the
Conservation of Water Hon Konrad Mizzi, the Minister for Finance Hon Edward
Scicluna, Parliamentay Secretary for Competitiveness and Economic Growth Dr
Edward Scicluna  and Chief of Staff Keith
Schembri.

GRTU's
Introduction

GRTU's introduction was made
by President Paul Abela who thanked the Prime Minister for this opportunity. He
stated that today GRTU has a wide range of experience and the administration
appreciates the valid input GRTU gives. Mr Abela called on the Prime Minister
to generate more work in the Localities and incentivize the use of empty
buildings. He also called on the implementation of the Small Business Act
principles to the full benefit of SMEs, especially because the public service
still has a very negative attitude towards the private sector. He reminded the
Prime Minister and members of the Cabinet that 98% of Maltese enterprises are
micro and small and together employ 77% of the workforce. Mr Abela said the
GRTU believes in the Prime Minister's personal enthusiasm towards SMEs and
therefore he appealed to the Prime Minister to change this mentality and that
GRTU will be right behind him to do that.

Mr Abela also expressed his
concern on the current developments which picture employers as abusers of
employment regulations. He appealed to the Prime Minister not to allow negative
campaigns and ones which create uncertainty. Everyone is very concerned with the
influx of illegal immigrants coming to Malta, but there is another influx that
should also concern us, the numbers of qualified Europeans coming to Malta to
seek jobs. In the sectors GRTU represents there are more job vacancies than
individuals with the right set of skills and qualifications wanting to work in
these jobs. There is an enormous skills mismatch that needs to be addressed.
This is why GRTU has been arguing for the setting up of Sectoral Skills
Councils.

There is also the problem of
the budget deficit and GRTU asked MCESD to convene with urgency and discuss the
European Commission report on Malta. MCESD unfortunately seems not to be seeing
this urgency and we feel it has not yet started working properly. There are
also very important Boards such as the Employment Relations Board which have
not yet resumed. It is important that the institutions are driven by capable
individuals that see the sense of urgency. Mr Abela's final remarks were that
there is a lot that needs to be done and GRTU intends to support the Government
throughout. GRTU is not afraid of the challenges that lie ahead.

The
Prime Minister's reaction

The Prime Minister thanked
President Paul Abela and he explained that he asked a number of members of the
Cabinet to be present in order to better tackle the issues GRTU presents. Hon
Muscat stated that he himself has not been the biggest fan of the
administration and agrees that the public sector those not really appreciate or
understand the private sector. He stated that the public sector is however
gradually changing its culture, attitude and mentality however they are still
afraid of change and innovation. The Prime Minister mentioned that the
Commissioner for Bureaucracy has been appointed also to have one single point
where to direct also suggestions and ideas. Dr Muscat re-emphasised that at no
time will he be defending the status-quo but he will be aggressively and
continuously attempting to introduce positive changes.

The Prime Minister described
the first Budget of this Government as an important element that will see the
increased engagement of the Private sector. Work on the Budget has already
started and they envisage that it will be in the form of a green paper,
something more practical and short. He also referred to the issue of the high
electricity and water tariffs and the water project that is being studied to
reduce these tariffs which should have a positive effect on consumers and
business owners.

On the issue of skills
mismatch the Prime Minister stated that we have vacancies but we also have
jobless which underlines this problem. Many vacancies are being filled by
foreigners. We need to help our youngsters build careers where it is required.
The Government has started working on guiding youngsters better. Hon Muscat also
mentioned the introduction of an employability index which will help guide
youngsters without denying them any opportunity of studying what they want.
Vocational Training will also be tackled through the youth guarantee. The
Government is looking at best practices from Germany and Austria.

On working conditions the
Prime Minister said further discussions with the GRTU are needed. He said that
the reality is that the majority of employers are law abiding and therefore the
Government does not want them to be at a disadvantage and suffer unfair
competition. Government wants a level playing field both when it comes to
industrial relations and unfair competition in tendering for example or other
abuses. This, the Prime Minister stated, included having everyone paying
eco-tax. Dr Muscat said the Government knew about the abuses that were taking
place and was looking into a solution that abided with the EU law of free
movement in the single market.

The
issues

GRTU's  Director General Vincent Farrugia presented
the Prime Minister with a Dossier of issues which were very important for GRTU
and on which immediate Government action was required . GRTU officials went on
to present the issues that are very important for GRTU members:

Crafts

GRTU said that the Crafts Village
is in a bad state. Many operators that used to work on genuine crafts have been
abandoned and neglected for many many years and have gradually left the
village. Thanks to the efforts of GRTU the operators within the crafts village
have once again become united within GRTU and an MOU was signed however we have
heard nothing since the change of Government. GRTU called on the Government to
help the crafts sector as it was very difficult for them to operate
sustainably. The Government stated that Ta` Qali is a priority but they need a
bit more time to find the best solution, we will start seeing tangible work on
the project by next year. The Government is now tapping EU funds for the
village. The aim is very simple, that of having a crafts village like all other
EU countries.

Audits
on micro companies

GRTU complained that micro
companies should not be required to submit yearly audits. It is a very large
administrative burden and cost on micro businesses and should Government do
away with such a requirement it would show a clear commitment to eradicating
excessive bureaucracy. The Government said it is working on this.

Contraband
Diesel

GRTU said that sale of fuel
has been reduced and we feel the main reason for this is due to contraband
fuels. There are ways to check this and track the source but raids are being
carried out in the wrong places, those that are already abiding by the law.
Government recognized that this is a problem and in fact they have         already found some sources and action
has been taken. More in this regard is planned. Any abuses in this area should
be reported directly to Minister Konrad Mizzi.

Port
Operations

Following GRTU's insistence
operations at the port are smoother however operators still have a lot of
problems with the CITIS office that opens just twice a week for few hours which
delays clearance. GRTU is also calling for Government to introduce a single
pass for operators to be able to go through all port facilities. Currently each
area or facility requires a different paper or pass.

Industrial
areas under Malta Enterprise

GRTU explained how difficult
it is for many SMEs to be awarded a large space from Malta Enterprise within
the industrial areas which they need for their work. Government said that the
law will be changed shortly as currently the guidelines are old and the
realities of the private sector today are very different and many sectors today
fall outside this scope. In addition Government said that industrial areas
falling under Malta Enterprise will have changes within that area falling under
the competence of Malta Enterprise and involve MEPA to a much lesser extent.

Water
consumption

There are a number of private
sector operators that are high consumers of water, amongst which are laundries.
These should be helped to reduce such consumption through schemes encouraging
change in machinery and other projects. Government said that a consultation is
currently underway and invited GRTU to submit its comments. In addition to this
a meeting will also be held with the Minister concerned.

Parking

Parking is the cause of many
problems and lack of business in many localities. GRTU explained it is very
hard for business in the main localities as their customers and employees
complain of lack of parking, loading and unloading is very complicated, deliveries
are very time consuming and wardens are on the watch eager to give fines. GRTU
mentioned that something needs to be done in these localities and Valletta
especially with all the complications of the CVA, coloured and reserved parking
spaces. Government said it is currently looking into ways in which the CVA
could change as well as other solutions for parking issues in the locality, an
example that was mentioned was the 15 minute parking on double yellow lines
being introduced in the UK.

Tourism

The localities should be given
center stage on this issue. There is a lot the localities can offer to tourists
and having such a small country is the main reason why tourists should not be
concentrated in the main tourist localities. Incentives for alternative types
of lodging in other localities must be incentivized. The same principle goes to
more work and childcare facilities in the localities. This will give new energy
to our localities and alleviate traffic congestions. GRTU also mentioned that
we feel the need to have our voice within the MTA.

IT

GRTU said that the taxes on IT
equipment are very high and evasion is rampant. The system needs to be revised.
GRTU called on the e-commerce scheme to be relaunched, it was a very good
scheme which should be reopened. In addition many students studying IT do not
continue studying because they cannot afford it. The schemes available are very
good but they require you to fork out the funds in advance. Government agreed
that a grant scheme must be introduced that will help student study without the
need to take out a loan.

Student
cards

GRTU called on revamping the
system as it is not clear and carries a high liability for owners of the retail
outlets as they are directly responsible for sales their sales people make. The
2% charged on goods bought with the smart card is too high. Retailers which are
a big stakeholder are not represented in the board determining the system.
These should be revised.

VAT

GRTU complained on the way
inspections are carried out at POS. The system includes very high fines and for
every POS you have to apply separately to get an exemption, a complicated
process.

EU
funds

GRTU called on the launching
of employment and training schemes. These should be available constantly and
should not be bureaucratic so as to encourage employers to apply and be awarded
refunds. In addition all schemes should cater for handholding for applications
as many businesses fail over lack of paperwork or pictures.

Agriculture

Operators in the agriculture
sector need help. There are many issues that hamper them including the
administration of the pitkalija, incentives for investments and encouragement
of agriturism. Government said that it is currently working on an agriturism
policy and is welcoming feedback on the revision of the pitkalija.

Rent
law

GRTU explained that many
businesses that have been operational for years have suffered from this law. It
is an unjust law which disregards any payments made throughout the years, the
contract between the owners and the tenants, goodwill, etc… In 15 years nothing
will matter they will have to go out and give the keys back to the original
owners. This is a right they had and Government took from them.

Valletta
City Gate

GRTU called on Government to
take the city gate complex in hand and turn into something that merits such a
prominent position. The shops in city gate want something to be done, they want
to invest and have their mind at rest that their contract is a long standing
one. Government said it seeks to find a solution together with the shop owners.

GRTU requests early maximum
information on Budget 2014 Fiscal Strategy – During the MCESD meeting last Monday 22nd July
Director General Vincent Farrugia highlighted the importance that business
knows where Government is heading from now till October 15, 2013. That is the
date by which Government has to present to the EU Commission the Malta
Government draft Budget for 2014, incorporating new fiscal measures to meet the
new Budget Deficit targets.

No discussion has as yet been held at MCESD on
the most essential reports submitted by the EU Commission to the Maltese
Government incorporating preventive and corrective measures that Malta
Government is instructed to act upon, in reply to what the Malta Government had
presented to the EU Commission, under the Malta National Reform Programme and
the Stability and Convergence Plans. The Country Specific Recommendation to the
Malta Government are published as is published the 2013 Stability and
Convergence Programme Overview by the Commission.

GRTU expected these documents to be presented,
assessed in detail and recommendations made at MCESD level, so that the
Ministry of Finance will be in a position to draft Budget 2014 incorporating
what MCESD social partners propose. This discussion at MCESD had been formally
demanded by GRTU but unfortunately, rather than prioritising economic and
social issues as highlighted by the EU Commission, Malta's top priority agenda
of the new MCESD leadership for the last weeks was different and they preferred
to highlight other issues.

The situation now is that we are only ten weeks
away from the presentation of the first draft of Budget 2014 to the EU
Commission for approval. No Pre-Budget Document has been published in Malta
this year. Government has boldly stated that the Council of Ministers is
determined to put the Budget Deficit vs GDP ratio back to 2.7% by the end of
2014 to avoid further EU imposed punishment under the Excessive Budgetary
Procedure. Yet MCESD is completely absent. The pre-Budget in discussion still
in the air.

"Businesses enterprises cannot just plan in a
vacuum. They need to know as early as possible Malta's Government fiscal
proposals for 2014. It is important for businesses, large, medium, small and
micro to know as early as possible what measures and economic incentives
Government is launching to boost Government revenue, reduce public expenditure
and generate growth to GDP so that the targeted 2.7% deficit to GDP ratio can
be achieved. The sooner we know the better. Investment and generation of jobs
depend on future planning." Vince Farrugia emphasised at MCESD.

The EU's new chemical
requirements for toys, which are among the strictest requirements in the world,
have started to applied since 20th July 2013. 

Substances which are carcinogenic, mutagenic or toxic to reproduction as
well as 55 allergenic fragrances are now banned from use in toys, while
labelling is now required for 11 potential allergens.  Furthermore, strict limits apply for 19
so-called "heavy elements" (such as lead or barium).

The chemical provisions
which were applicable until now already included a large safety margin and
required that only safe toys were be placed on the market.  Nevertheless, the new requirements further
strengthen the high level of protection of children's safety in the EU.  European Commission Vice President Antonio
Tajani, Commissioner for Industry and Entrepreneurship, said: "Toy safety and
protection of children's health is one of the Commission's highest
priorities.  The Commission will continue
to follow up scientific developments to ensure that chemical requirements for
toys are swiftly adapted to scientific progress."

Up to €8.6 billion could be
saved by EU consumers by switching from their internet provider to one with
cheaper tariffs.  A new EU study
estimates that EU consumers could save, on aggregate, up to €8.6 billion per year
by switching their internet provider: The Staff Working Document published
yesterday examines consumer experience of Internet access and provision across
the EU.

The Commission has today
published the long-awaited proposals on the ‘payments package' of a revised
Payment Services Directive (PSD), a Regulation on multilateral interchange fees
(MIF) and a communication on SEPA governance.

These proposals are a
very significant step to bring competition and transparency into how payments
are made and paid for. They should allow retailers to pass savings on to
consumers, bringing them real benefits across Europe in these times of
hardship. Claims by card schemes that retailers would not pass on cost savings
to consumers are nonsensical: price competition and the elimination of
inefficiencies are in the DNA of retailers. The proposed MIF caps and other
measures will give merchants more control over costs, and consumers choice of
payment options. The proposals however falls short of the ideal: merchants had
hoped for the abolition of the MIF as a concept, certainly on debit. A move
away from percentage fees to flat, cost-based transaction fees would have been
more reasonable, especially for debit cards.

Retail also welcomes the
measures contained in the revision of the PSD and the communication on SEPA governance.
The opening of payments markets to new entrants will significantly improve
competition and stimulate innovation. A better balance between payment
providers and payment users on governance is also welcome and should ensure
fairer long-term decision-making.

We very much welcome:

That
the MIF regulation will apply to all consumer card transactions, domestic and
cross-border and that it is a per transaction cap. However, the two-year delay
for implementation at domestic level will unnecessarily delay the bulk of the
consumer benefit from being realised.

The
removal of the ‘honour-all-cards' rule. This will give merchants the freedom of
choice to steer consumers away from over-expensive cards.

The
ability to operate real cross-border acquiring. This will allow true economies
of scale for merchants and should bring card fees down further in the long-term.

The
inclusion of third-party payment providers within the PSD. This will inject
some much-needed competition into the payments market.

Enabling
third-party providers to initiate payments. The ability to access the necessary
account information will help innovative players offer cheaper, more efficient
services and make full use of technological advances in e-payments.

What could be improved:

The
level of caps: we still urge the legislators to reduce the MIF on consumer
debit to zero and improve the level on credit. We

The
persistence of ad valorem fees: we see no justification for the maintenance of
percentage MIFs – especially on debit transactions.

Commercial
cards, which carry the highest MIFs, should be covered by the regulation as well.

The European Economic and
Social Committee (EESC) was requested to draft an opinion on the proposals
issued today by the European Commission. The EESC Bureau appointed GRTU's
Director General and EESC Employers Representative Vincent Farrugia to prepare
a report to be approved firstly by the EESC Single Market, Production and
Consumption Section (INT) and afterwards presented for voting at the EESC
Plenary on the 10th December of this year to be adopted as EESC Opinion.

Government has this week
launched a wide public consultation process on the next generation of funds,
those covering the period 2014 – 2020. These funds are very important for the
Malta's national development from an economic, social and environmental
perspective in order to ameliorate the standard of living of citizens.
Therefore it is very important that we plan well how these significant amount
of funds should be spent in order to achieve long lasting positive results.

There are two very
important factors to consider.

1.  The
amount of money is substantial, €1.1bn, but compared to the endless shopping
list Malta has these are not sufficient.

2.  We
cannot just choose anything and expect to get funding for it.

The European Commission
has identified challenges and gaps that need to be addressed and these are the
priorities where the funds will be focused. 
The priorities outlined are the following:

1.  Innovation-friendly business environment

o   infrastructure
to develop R&I excellence and promoting centres of competence in particular
those of European interest (such as a Centre of Excellence on Adaptation to
Climate Change or Energy Efficiency and Green Technologies). Malta should
finalise its National Strategic Plan for Research and Innovation 2011-2020 in
all its aspects and bring it in line with the requirements for a 'research and
innovation strategy for Smart Specialisation'.

o   Increasing
indigenous private sector research and development activity. Sectors that have
already been identified include health and biotechnology, energy, climate and
environmental technologies, ICT and high value-added manufacturing, aviation,
businesses based on intangible assets such as cultural and creative industries
as well as the maritime and aquaculture sectors.

o   Promoting
entrepreneurship and competitiveness of SMEs, including businesses in
agriculture, fisheries and aquaculture by establishing a clearer link with
research and innovation capacities (business-academia link).                                           

o   Incentivising
investment in higher value-added sectors: Important areas which show potential
for cluster formation and internationalisations are the health and
biotechnology sectors, energy and environmental technologies, ICT, high
value-added manufacturing, the aviation sector, as well as the maritime and
aquaculture sectors.

2.  Environment-friendly and resource-efficient
economy

o   Large-scale
investments in low-carbon and environment-friendly production: potential for
the generation, supply and use of wind and solar power, as well as
cost-effective clean ocean energy shall be explored.

o   The
promotion of energy efficiency in SMEs, agricultural businesses, public
infrastructure and the housing sector.

o   Reducing
landfilling and increasing the share of recycling and recovery of waste, in
line with the waste hierarchy and the polluter pays principle. High priority
should be given to activities promoting water quality, efficient water reuse
and water recovery through both the use of innovative solutions and the completion
of basic infrastructure. In particular, investments improving the energy
efficiency of the desalination process shall be supported.

o   Long
term strategies are essential for soil conservation and to increase soil
organic matter which will render the land more able to cope with future
climatic changes.

o   The
sustainable use of marine resources, including prevention of overfishing is
important for the further development of the country's blue economy.

o   Support
should be given to measures against the pollution of the marine environment,
selective fishing gear and innovations reducing the impact of fisheries on the
environment.

o   Sustainable
urban transport investments and the implementation of an intermodal shift from
land to sea shall help to reduce road congestion and curb high transport
emissions. Further investments will be needed to upgrade TEN-T road and port
infrastructure in line with the requirements for TEN-T core network.

3.  Increasing labour market participation through
improved employment, social inclusion and education policies

o   Investments
in the field of employment and social inclusion should focus on the integration
of the most vulnerable groups on the labour market: older persons, women, youth
and people at risk of social exclusion.

o   Malta
should allocate adequate funds to support active and healthy ageing measures
aimed at increasing employment rates of older workers and enhancing their
employability (e.g. life-long learning and entrepreneurship). To be effective
over time, these measures need to be accompanied by reforms in the health
sector to improve the health of the workforce and respond to the needs of an
ageing society, as well as promote innovative and elderly friendly forms of
work organisation to maintain older people longer in employment.

o   Special
attention should be placed on incentivizing older women to enter the labour
market. Increasing the participation of women on the labour market and
promoting equality between men and women and reconciliation between work and
private life should become an important priority.

o   Concentrate
on improving quality and access to affordable early childcare, out-of-school
care and pre-school education through investment in public infrastructure and
provision of qualified staff. This should aim to reducing the effects of
parenthood on female employment. Investments should focus also on adapting the
labour market to the needs of women.

o   Prioritising
the integration of young people not in employment, education or training into
the labour market. This in turn calls for investments in more individualised
active labour market measures and, increased access to quality apprenticeships
and traineeships, including non-formal learning approaches.

o   Entrepreneurship
and self-employment should also be specifically targeted, as these could offer
a solution to the problems mentioned above. Funds should be dedicated to
increasing the access to the possibilities of self-employment as an alternative
to unemployment or inactivity, especially in the case of youths, women and
older people, while providing the necessary training and institutional setting
to better prepare individuals to set up their own business.

o   Due
priority should be given to the disabled and other persons facing particular
risks, including single parent families, children, and older people in the
context of reinforcing measures to help people at risk to return to employment
or to receive further training.

4.  Improving the level of education

o   Improving
the quality of education and addressing skill mismatches, reducing the number
of early school leavers, and enhancing access to lifelong learning. Malta still
has one of the lowest levels of tertiary educational attainment in the EU.

o   Provision
of flexible learning opportunities, while at the same time increasing the
variety of courses on offer. Malta should invest in more innovative higher
education, namely through more interactive learning environment, and fostering
strategic cooperation between higher education institutions and enterprise.

o   Reduction
of early school leavers: Development of a system to identify and address the
main reasons leading to the high incidence of early school leaving, and the
implementation of comprehensive strategies to reduce this phenomenon.

o   Investments
should focus on better adapting workers, enterprises and entrepreneurs to the
restructuring of the economy, including by further modernizing the vocational
and education training (VET) system. Particular attention should be given to
buoyant sectors of the economy such as green, white, ICT and personal services
sectors.

GRTU will be consulting
members on this very important topic to ensure the priorities of all our
sectors are included. Further details will be made available shortly.

Yesterday the GRTU Executive
Council was very pleased to officially meet Mr Mario Cutajar as the new
Principle Permanent Secretary since the change in Government. GRTU President
Paula Abela welcomed Mr Cutajar and took the opportunity to congratulate him in
person on behalf of the Council on his appointment.

GRTU is pleased the Prime
Minister chose a person with a long experience in representing a large group of
people. From experience we know that those that have never been in the position
of representing find it hard to understand the positions we take and the work
we do and how important listening and understanding civil society is.

Mr Cutajar thanked the
Council for its warm welcome and their thoughts and he reminded us that he has
also worked under the other administration and through the experience he has he
is introducing changes which he feels will improve the environment we live and
work in. He stated he believed in listening and that the grass roots are very
important. Reforms in the public sector have also started, Mr Cutajar said that
every public servant has to understand that they have a client to service and
that their systems are there to assist them in carrying out their work and not
vice-versa. The Management and Efficiency Unit, which existed under the
previous administration falls now directly under his responsibility but now
they are given the importance they deserve and being assigned to the different
Ministries. Mario Cutajar also said that he is a great believer of MCESD and he
was always very active in MCESD.

GRTU's Director General
Vincent Farrugia mentioned that the topics for MCESD have to be chosen
carefully, there are other important committees where certain discussions would
be more appropriate. GRTU is particularly looking forward of starting Budget
discussions at MCESD.

GRTU complained with Mr
Cutajar how the MGSS (a scheme providing grants for individuals carrying out
masters) is being badly administered in a way that the individuals that have
applied for the grants will only be informed when the course starts. Mr Cutajar
stated Government is aware of the problem as is seeking to address it.

GRTU informed Mr Cutajar
that the 5.5M EU funded ERDF Solar Energy Scheme administered by Malta
Enterprise was very important for our members suppliers in order to be approved
as installers. So much so that 39 companies applied however disappointingly
only 6 were accepted. GRTU complained of the lack of assistance in applying and
they should not be disqualified for frivolous reasons. Mr Cutajar confirmed he
will look into it.

GRTU also brought up the
issue of lotto receivers where they are having problems because of an agreement
which was signed between Government and the private operator, an agreement
which specifically mentions them, but they have no access to it, not even to
the specific clauses that mention them. This we feel is unjust. Mr Cutajar said
he will ask the Permanent Secretary to look into it.

GRTU also brought up the
important topic of Crafts which is not given enough importance in Malta. We
need a law covering Crafts in Malta. The Ta` Qali Crafts Village is once again
dragging and we do not know what are the Government's intentions.

GRTU supplied Mr Cutajar
with a document containing the most important pressing issues GRTu is currently
dealing with.

Enterprises are being invited to complete an independent
evaluation of the European Commission's tariff suspension scheme which allows
for the full or partial waiver of duty paid on goods imported to the EU, and
can result in significant cost savings for EU businesses. More information can
be found at:

http://ec.europa.eu/taxation_customs/customs/customs_duties/tariff_aspects/suspensions/

The survey has been launched to test the
awareness of the scheme amongst EU businesses. The results will be used to review
and, improve the scheme, including the way it is communicated.

The survey is available until
12th July at:

www.surveymonkey.com/s/EU_suspensions_awareness

Euro area annual inflation was 1.6%
in June 2013, up from 1.4% in May. A year earlier the rate was 2.4%. Monthly
inflation was 0.1% in June 2013. European Union annual inflation was 1.7% in
June 2013, up from 1.6% in May. A year earlier the rate was 2.5%. Monthly
inflation was 0.1% in June 2013.

These figures come from
Eurostat, the statistical office of the European Union.

In June 2013, the lowest annual rates were observed in
Greece (-0.3%), Latvia and Poland (both 0.2%), and the highest in Romania
(4.5%), Estonia (4.1%) and the Netherlands (3.2%). Compared with May 2013,
annual inflation rose in eighteen Member States, remained stable in two and
fell in six. The lowest 12-month average rates up to June 2013 were registered
in Greece (0.2%), Sweden (0.7%) and Latvia (0.9%), and the highest in Romania
(4.5%), Hungary (4.0%) and Estonia (3.9%). Malta's inflation rate has decreased
from 4.4% in June 2012 to 0.6% in June 2013.

The largest upward impacts to euro area annual inflation
came from vegetables (+0.11 percentage points), fruit and electricity (+0.09
each), while telecommunications (-0.20), fuels for transport (-0.11) and
medical & paramedical services (-0.08) had the biggest downward impacts.