Author: SME Chamber

In its report on growth prospects in
Europe and the various member states the Commission reports that real GDP in
Malta as a whole is expected to have increased by 1% in 2012 and, as domestic
demand gradually strengthens, growth is projected to  accelerate to 1.5% in 2013 and 2% in 2014.

In particular, construction investment
is forecast to pick up on the back of EU funded projects as well as the
electricity interconnector with Sicily, which is scheduled for completion by
end-2013. By contrast, housing investment is expected to remain subdued, in
line with the expected  moderate outlook
for the housing market. The upturn in domestic demand will stimulate imports,
thereby reducing the trade balance. However, net exports are expected to
continue to add positively to economic growth and the current-account balance
is  forecast to remain  positive over the forecast horizon.

The labour market continues to prove
resilient and job creation is projected to remain robust throughout the
forecast horizon, significantly outperforming the euro-area average. Employment
growth is expected to have reached 1.7% in 2012, largely on the back of the
expanding services sector, while industrial employment continued shrinking.
Going forward, as the economic outlook brightens, employment and average wage
growth are forecast to strengthen and move towards their pre-crisis average.
The unemployment rate is projected to remain among the lowest in the euro area
and further narrow to 6.1% in 2014.

Risks to this scenario appear balanced.
The currently  uncertain political
situation in Malta, ahead of the parliamentary elections in March, could have a
further negative impact on consumer and business confidence and delay the
recovery of domestic demand in 2013. On the upside, the rapidly developing
financial sector could benefit from the assumed stabilisation in the euro-area
financial markets and resuming confidence, thus supporting real GDP growth.

Budget
deficit projected to widen in 2013 in the absence of a budget

The headline general government
deficit  is projected to  have 
improved in 2012. Current primary expenditure is expected to have
accelerated, outpacing nominal GDP growth, mainly due to higher social
transfers and subsidies to the national energy company (Enemalta). By contrast,
compensation of employees in the public sector is set to  have 
grown at a more moderate pace as a result  of continued hiring restraints. 

Current primary expenditure is forecast
to drop by 0.3 pp. of GDP, reflecting a continuation of the tight recruitment
policy in the public sector as well as 
subdued  dynamics of social
transfers from the impact of the 2006 pension reform. Net capital expenditure
is expected to

grow by 0.5 pp. of GDP. The increase in
tax revenue related to the pick-up in economic activity. As a result, current
revenues are projected to decline slightly. In 2014, the deficit is projected
to narrow, on the back of domestic demand-driven growth.

After having improved by more than 1
pp. of GDP in 2011, the structural deficit is expected to remain stable  in 2012 and, on a no-policy-change
assumption,  is forecast  to improve by ½ pp. of GDP in 2013 and by ¼
pp. of GDP in 2014. The main downside risk to this scenario is related to the
financial situation of Enemalta, which could entail additional subsidies.

This Guidance document has been drafted for the
management -in any food manufacturing environment – of allergenic foods and
substances ("allergens") identified in EU legislation.

Food companies have a responsibility
to establish a food safety management system to comply with legal requirements.
Allergen Management should be an integrated part of food safety assurance strategies
and should consider the risk from food allergens together with other food
safety risks. It should be built into operational standards for a company's own
manufacturing, for third party manufacturing performed on behalf of the company
and be incorporated into all raw material supply standards. The FDE guidance on allergen management can be found on:

http://www.fooddrinkeurope.eu/uploads/publications_documents/FINAL_Allergen_A4_web.pdf

Following a special agreement reached with the
management of Canton Fair, GRTU's special China Unit is offering interested
manufacturers and traders the opportunity to participate in the Canton Fair,
the largest fair worldwide, held in Guangzhou China from the 1^st to
the 5^th of May 2013.

This offer is open for manufacturers and traders in
the following fields;

Household goods, Textiles and fabrics, Footwear, Clothing and Accessories, Office supplies, Medicinal products, medical devices and health products

Canton Fair covers an area of 1.16 million square
meters, holds as many as 24,800 exhibitors and is visited by 188,000 visitors
from around the world, this excluding Chinese visitors.

Thanks to GRTU's excellent
relations with the management of Canton Fair, special arrangements have been
made for prospective exhibitors to facilitate their presence in the fair, even
without the need to send their own representatives. Furthermore GRTU has
special arrangements in place that offer very advantageous fees for
participation in the fair. Companies may also benefit from assistance under the
‘Malta Enterprise Internationalisation Scheme'

For companies that decide to send their own
representatives, arrangements have been made for special travel and
accommodation fares at convenient hotels, interpreters, freight for samples and
marketing material.  Business follow up facilities after the fair are also
being offered by GRTU. These include customs clearance, due diligence
exercises, inspections and other related services.

Interested parties should contact our International
Desk by email on or telephone 21 232 881.

LIFE+ is the European Union's direct funding programme
for the Environment providing funding opportunities for the conservation of
protected habitats and species, the halt of loss in biodiversity and the
implementation of environmental policy through demonstrative, innovative and
information projects. Environment protection is of crucial importance to the
European Union and LIFE+ is there to provide complementary support to other
funding instruments aimed at protecting our environment.

LIFE+ is subdivided into three distinct strands, thus
a vast array of projects can be implemented. These strands are:

LIFE+ Nature & Biodiversity, co-finances best
practice or demonstration projects that contribute to the implementation of the
Birds and Habitats Directives. In addition it
also co-finance innovative or demonstration projects that contribute to
the implementation of the objectives of Commission Communication (COM (2011)
244 final) "Our life insurance, our natural capital: an EU biodiversity
strategy to 2020";

LIFE+ Environmental Policy & Governance
specifically aims at contributing to the implementation, updating and
development of EU environmental policy and legislation, the development of
innovative policy approaches, technologies, methods and instruments, the
knowledge base as regards environment policy and legislation, and the
monitoring of environmental pressures. This strand covers such projects in the
remit of nature and biodiversity, climate change, water, air, soil, urban
environment, noise, chemicals, environment and health, waste and natural
resources, forests, innovation and strategic approaches as well as the
integration of environment into other policies, thereby contributing to
sustainable development; and

LIFE+ Information & Communication co-finances
information campaigns related to all the environmental aspects mentioned above.
Such proposed projects must seek to raise awareness on environmental issues so
as to achieve a positive change in people's attitude towards the environment.

This fund has a total budget of around €2.143 billion
for the period 2007-2013, with more than €2.6 million as Malta's indicative
national allocation. LIFE+ is open to all bodies that are registered in the EU;
therefore applications could be submitted from the public as well as the private
sector as well as universities, research institutes and environmental NGOs
within the 27 EU Member States. Applications can be submitted by a single
beneficiary or a partnership including a coordinating beneficiary and
one/several associated beneficiaries.

The new application package including applications and
all the related documentation and guidelines, will be available from the
official website being
http://ec.europa.eu/environment/life/funding/lifeplus.htm  around mid-February on the launching of the
call.  Furthermore, one can also find a
database listing all the projects that have been funded under LIFE/LIFE+
together with a brief description of the projects as well as links to their
websites on:

http://ec.europa.eu/environment/life/project/Projects/index.cfm

It is important to note that once again, this year,
the application format is completely electronic, thus one should access the
e-proposal following this link. https://webgate.ec.europa.eu/eproposalWeb/ .It
is important to note that the call for proposals shall be opening around
mid-February 2013 closing around in the last week of June 2013 after which date
the applicant can no longer access the proposal on the web portal.

An information session in collaboration with MEUSAC
shall be organised on the 1st March 2013, as per invitation attached. If
interested, kindly forward your registration form to Mr Brian Pace who is in
copy. For further information you may wish to set an appointment with the
undersigned where we can discuss project ideas and this funding instrument in
more detail.  

The EU Commissioner for Climate Action, Connie Hedegaard
has launched an exciting contest, calling on creative minds from across the EU
to put their green initiatives to the test. The competition entitled; ‘The
World You Like Challenge' is part of the European Commission's climate action
campaign: ‘A world you like.'

In line with the EU 2020 targets to reduce the EU's
greenhouse emissions, innovative groups, organisations or individuals based in
an EU Member State are invited to submit their story on the action they have
taken/will be taking to reduce greenhouse gas emissions.

Additional information can be found on:
http//word-you-like.europa.eu

GRTU welcomes US President Obama's
clear commitment to a comprehensive Transatlantic Trade and Investment
Partnership. We count on both sides' responsibilities to advocate free trade
policy as an indispensable tool to promoting growth and welfare worldwide.

In
that respect, the EU should seek the closest possible economic integration and
regulatory cooperation with the US, while insisting on the need to not question
the overall priority attached to the conclusion of the multilateral WTO Doha
Round.
In times of economic weakness and
uncertainty, facilitating trade is key to promoting growth on both sides of the
Atlantic. Hence, it is absolutely essential to remove the remaining trade
barriers between the world's most important trade giants. GRTU also welcomes
the final report of the High-Level Working Group on Jobs and Growth that pleads
for an ambitious and comprehensive trade agreement between the European Union
and the United States.

In addition to some tariff-related
issues, the commerce sector is highly affected by regulatory barriers. Free
trade negotiations could provide an additional opportunity to enhance
consistency in customs clearance procedures between both regions, but also to
ensure consumer protection and environmental and quality standards between the
EU and US. Mutual recognition of the high standards already in place within
each region would encourage trade between the EU and US.

Statement
from US President Barack Obama, Council President Herman Van Rompuy and
Commission President José Manuel Barroso

"We, the
Leaders of the United States and the European Union, are pleased to announce
that, based on recommendations from the U.S.-EU High
Level Working Group on Jobs and Growth co-chaired by
United States Trade Representative Kirk and European Trade Commissioner De
Gucht, the United States and the European Union will each initiate the internal
procedures necessary to launch negotiations on a Transatlantic Trade and Investment
Partnership.

"The
transatlantic economic relationship is already the world's largest, accounting
for half of global economic output and nearly one trillion dollars in goods and
services trade, and supporting millions of jobs on both sides of the Atlantic.

"We are
committed to making this relationship an even stronger driver of our
prosperity. In that regard, we welcome the High Level Working Group's
recommendations on how we can expand further our transatlantic trade and
investment partnership, promoting greater growth and supporting more jobs.

"A
high-standard Transatlantic Trade and Investment Partnership would advance
trade and investment liberalization and address regulatory and other non-tariff
barriers.

"Through
this negotiation, the United States and the European Union will have the
opportunity not only to expand trade and investment across the Atlantic, but
also to contribute to the development of global rules that can strengthen the
multilateral trading system."

The
Reference Group on "Hospitality and Tourism" formerly termed
"Accommodation and Food Service Activities", will review the specific
contents of Employment, Skills, Competences Occupations (ESCO) in their field
of economic activity. It covers NACE sections referring to accommodation, food
service and tourism.

Purpose
of their work is to update and validate the ESCO data so that it enables an
efficient matching between skills/competences, jobs and learning opportunities.
To this end, the group will review the occupations, as well as those
skills/competences and qualifications that are specific to the sector.

The
group aims to make a proposal for a complete revision of the sector within a
timeframe of two years.

Members
of the Reference Group acknowledged that the group is trans-European, balanced
and includes representatives of public and private stakeholders, policy makers
and key industry stakeholders.

Members
of the Reference Group can act as multipliers. Using their professional
networks they will be able to involve a much larger group of stakeholders. The
Malta Stakeholders include organization and institutional representatives from
the tourism and business sectors including the GRTU, MHRA and MTA. The
Reference Group expert for Malta is Julian Zarb, Director (Tourism).

The
members of the Reference Group unanimously elected Mr Julian Zarb as chairman
and Mr Geoff Carroll as vice-chairman.

"Don't be
afraid of criticism, President Draghi was right to come out strongly stating
that the European Central Bank (ECB) will do whatever needs to be done to save
the Euro" stated Vince Farrugia GRTU's Director General and EESC
Employers Representative.

He was addressing Mr Constâncio, Vice-President of the
European Central Bank, as one of the selected EESC Plenary speakers on behalf
of European Employers. "Unfortunately
for far too long a time the ECB stayed back and allowed the financial markets
to dictate, assuming wrongly that the financial institutions will shy away from
usurping speculative profits. This was a wrong strategy based on a defunct
theory that profit seekers left on their own will decide on what is best for
us. The ECB should have never been caught unaware to the money flows that
caused the background to the greatest financial and resulting economic crisis
of our times. It seems that the lesson has now been learnt and a more
aggressive ECB is emerging. Keep up the rhythm. Don't go back to the old ways.
Never be caught out again unaware" emphasized Vince Farrugia.

Mr Farrugia said that he expected ECB to monitor and
when needed influence what national central banks are doing and what the
financial institutions are doing. He emphasized to watch especially the
politicians at both local and national level and more especially in Brussels,
in the Council. There is time for politicians to act and legislate. But there
is time and an important phase for the technocrats to monitor, supervise,
decide and act. The ECB should act decisively to influence important decisions.

GRTU's EU desk has this week once again participated
at the EuroCommerce Social Affairs Committee (SAC) and the Social Dialogue
Committee (SDC) meeting which is held on a tripartite level between Employers
Organisations and EuroCommerce as their representative, Trade Unions and
UniEuropa Commerce as their representative and the European Commission.

At the SAC employer representatives exchanged views
and held discussions and the EuroCommerce secretariat provided an update of
activities. During this update an urgent and important issue was discussed
related to a report being prepared by EESC members related to Self-Employment.
It was stated that this working document has improved but there are still some
aspects that are considered problematic. Work will be carried out in this
regard including a position paper, voting recommendations and work within the
EESC.

During the SAC EuroCommerce also explained that an
Economic Study on Commerce will be conducted this year by EuroCommerce. This
initiative was taken following a number of important proposals concerning
commerce which would be needed in order to represent commerce with a stronger
position. The idea is to come up with figures and provide a good story for
commerce in relation to GDP, employment, investment, innovation, and more. The
result of this study will be disclosed at EuroCommerce's annual event.

Presentations were also delivered by the European
Association of Paritarian Institutions on the White Paper on Pensions and by
the European Banking Federation on their involvement in Social Dialogue. The
SAC closed with an update from all national representatives where the EU Desk
representing Malta also gave a national update where statistics were presented
stating that latest figures show that the unemployment level stood at 4.3% with
a total of 6,811 registered unemployed 78% of which were males and over 73%
being in the over 30 age group. The EU Desk also mentioned that on a national
level social partners have signed a declaration endorsing the Jobs+ report
which was presented by an employers organisation and we are also participating
as partners in an ESF funded project on Stress at Work. The meeting closed with
the Chair saying that due to several commitments he will be unable to continue
holding his position as chairman and that another chair will be replacing him.

The SDC was opened by the new European Commission
representative. An update was provided on the next Capacity Building Project in
which GRTU, being Malta one of the new Member States, will also be
participating. This project builds on a previous project called CABEO which
also focused on Capacity Building in Social Dialogue for employers
organisations. GRTU looks forward to the next project that will provide
valuable knowledge and tools with which the capacity of GRTU will be enhanced.

A presentation on the European Retail Action Plan was
delivered. This action plan mainly focuses on eliminating already identified
obstacles to the Single Market in the Retail Sector.  Presented also was the Youth Employment
Package which provides Member States with a number of solutions and initiatives
to alleviate the problem of youth employment, which in some Member States
stands very high. The Commission stated that nearly one in four young people on
the labour market cannot find a job, more than 30% of unemployed young people
were long-term unemployed and the EU youth unemployment rate was more than
twice as high as the general unemployment rate. Among the initiatives of the
Employment Package to tackle these problems are: Youth Guarantee scheme,
Increase the supply of high-quality traineeships and apprenticeships, Labour
mobility and Reforms in labour market regulation.

Finally an update was provided on the European Skills
Council for Commerce where it was stated that a small group of Member States
have already subscribed to this initiative and more concrete interest is
expected shortly. GRTU is currently in discussions on the setting up of a
national skills council for commerce. Meanwhile at EU level the website has
been launched.