Author: SME Chamber

Valletta was unanimously named European
Capital of Culture (ECoC) for 2018 by a jury of experts, following a
presentation by the Valletta 2018 Foundation on October 12. The ECoC jury
chairman Manfred Gaulhofer said that the jury was convinced that Valletta had
the will, motivation and the required ambition to receive the title. Minister
for Tourism, Culture and the Environment Mario de Marco, said that this is very
positive news for the cultural and artistic sectors in Malta. The title of ECoC
can lead to the opening of numerous opportunities in the sectors of the arts
and culture in Malta. The EU Council will officially declare Valletta as the
title holder for 2018 in May of next year.

European Commission teams up with businesses, environment groups and
universities to promote climate solutions. Connie Hedegaard, European Commissioner for Climate Action,
launched a pan-European communication campaign in collaboration with more than
70 organisations from across Europe.

Across Europe there are abundant
examples of intelligent, innovative climate solutions that reduce CO2 pollution
while also improving people's quality of life. For example, Stockholm's central
rail station converts the body heat of commuters into heat for a nearby office
building, reducing not only emissions but also the building's energy bill by
20-25%. In Denmark, the Gedved school in Horsens saves €30,000 a year on energy
thanks to solar power. The money saved is spent on improving education.

Such "win-win" solutions –
where saving money, time and greenhouse gas emissions go hand in hand – are at
the centre of the communication campaign launched by Commissioner Hedegaard at
London's City Hall.

"We have a choice: We can ACT on
our knowledge about climate change. Or we can sit idly by and watch as things
get worse. Both options come with a price tag. So why not create a world we
like, with a climate we like – while we still have time? With this campaign we
want to focus the debate on the solutions and find out what is holding us back
from applying them," said Connie Hedegaard.

Centred on a website which will soon be
available in all 23 EU languages, the campaign is designed as a platform for
participation where individuals, businesses and local groups will be able to
upload, promote and discuss their low-carbon solutions and take part in a
pan-European contest to find the best and most original one.

Partnerships with like-minded
organisations are a central part of the campaign. More than 70 organisations
are already confirmed campaign partners, including business associations,
universities, non-governmental organisations and government institutions. The
intention is to enrol more partners as the campaign evolves.    At the launch event "Visions for a
world you like", campaign partners and citizens have joined Commissioner
Hedegaard, UK Secretary of State for Energy and Climate Change Ed Davey and
other speakers to kick off the debate. The discussions are being streamed live
on the campaign's Facebook page and contributions can be made on Twitter.

More events will follow in a number of
Member States, including Bulgaria, Italy, Poland and Portugal, in the course of
2012-2013.

Background

The campaign will run until the end of
2013 and aims to showcase existing cost-efficient solutions for achieving the
EU's objective of an 80-95% reduction in greenhouse gas emissions by 2050.

It is a follow-up to the Commission's
"Roadmap for moving to a competitive low-carbon economy in 2050" from
March 2011, which sets out pathways for deep but cost-effective emission
reductions by the main economic sectors. 
The Roadmap shows that building a low-carbon economy will increase
investments in clean technologies and infrastructure such as smart electricity
grids, and will drastically lower import bills for oil and gas.

In the medium-term, by 2020, the EU
aims to reduce greenhouse gas emissions by 20%, improve energy efficiency by
20% and boost the share of renewables in the energy mix to 20%. Currently, EU
emissions are more than 17% below 1990 levels.

Further
information

Prime Minister Lawrence Gonzi chaired
a meeting of EU leaders present for the 5+5 Summit. The meeting focused on the
economic situation in the euro area in view of the European Council of October
18 and 19. French President François Hollande, Spanish Prime Minister Mariano
Rajoy, Italian Prime Minister Mario Monti, Portuguese Prime Minister Pedro
PassosCoelho and Prime Minister Gonzi reiterated their call for a swift
implementation of the decisions adopted by the European Council in June.

European
Stability Mechanism

The ESM is a permanent crisis
resolution mechanism for the countries of the euro area. The ESM issues debt
instruments to finance loans and other forms of financial assistance to euro
area Member States. The decision leading to the creation of the ESM was taken
by the European Council in December 2010. The euro area Member States signed an
intergovernmental treaty establishing the ESM on February 2 of this year.
By  October 3, all euro area Member  States had ratified the Treaty. The Maltese
Parliament unanimously ratified the Treaty last July 6.

Malta's
position on the MFF 2014-2020

During a meeting with European
Commission President Josè Manuel Barroso on October 6, Prime Minister Lawrence
Gonzi explained Malta's position on the EU's Multiannual Financial Framework
(MFF) for 2014-2020 and the need for a particular solution for Malta.The
Union's Cohesion Policy is important for Malta to strengthen its
competitiveness and, therefore, the Commission should understand Malta's unique
position as an island-state. Dr Gonzi also mentioned the particular situation
of Gozo and referred to his letter sent to President Barroso last July in which
he invoked the provisions of Declaration 36 of the Treaty of Accession "on the
Island Region of Gozo". In reply, Mr Barroso stated that he recognises Gozo's
particular situation and that his wish is that agreement on the MFF is reached
by the end of this year. The MFF will be the main subject of a special meeting
of the European Council to be held on November 23. President Barroso also
thanked Malta for its positive and constructive contributions within the EU.
The Commission's president also had a meeting with the Leader of the
Opposition, Joseph Muscat, which focused on Malta-EU Affairs.

The Report of the World Bank: Doing Business
2013 alarmingly ranked Malta with countries of the like of Syria, Madagascar
and Tajikistan! In all the 20 years of combating bureaucracy we thought we had
reached a good point or at least some improvement was made and not that we
would be shamed on an international level.

GRTU officials have this morning
attended the Malta EU Steering and Action Committee Core Group meeting as
members. On the agenda was the Single Market Act II and EU enlargement. The
aims of the Single Market (SM) were explained as an area without borders for
persons, goods, services and capital, based on free movement.

The SMA II has 4 drivers:

Developing fully integrated networks
in the SM

Maritime Transport falls under this
driver. 40% of all merchandise transported occurs through sea shipment.
Maritime does not have the same SM benefits as compared to merchandise
transport on land as it still undergoes controls even if it is coming from
another MS. This is a problem mainly due to uncertainty however this will now
be addressed through tracking devices. This priority also includes the
acceleration of the implementation of the Single European Sky.

Fostering Mobility of Citizens and
Businesses Across Borders

Development of EURES and facilitation
for citizens' job mobility is a priority for this driver. Access to Finance
through investment Funds, and investment for SMEs. This will include venture
capital solutions in 2013. Modernising of insolvency rules and second chance.

Supporting the digital economy across
Europe

Making electronic payment more secure
and card payments more efficient. Making e-Invoicing standard for public
procurement.

Strengthening social
entrepreneurship, cohesion and consumer confidence

Improve product safety and market surveillance.
Access of basic bank account, transparency of bank fees and make account
switching easier.

During the discussion GRTU's Director
General Vincent Farrugia stated that "for Malta the Single Market Act is vey
important as before we entered the EU we had reached a stand still as we
fulfilled the limitations of our market and required a much larger market. I am
very active on this subject also at EU level as member of the EESC and have
today 5 publicised reports which fall under this very important subject. Malta
is the kind of country because of our smallness and limitation for which the
Single Market is most important because that is what we depend on. GRTU is for
instance against protectionism in the form of anti-dumping to protect European
manufacturers. Weare however in favour of state aid to EU Industry to make up
for the enormous amounts of legislation which other countries outside the EU do
not have to comply with such as employment and environmental standards, which
constitute such a big cost and is translated in increased cost to the
consumer." Particular emphasis was made on the fact that we have nothing
against opening our market to foreigners as long as they comply also with the
national criteria our members have to comply with. Illegal importation and
competition is still a problem that hurts our business and on which effective
action is not evident.

On Enlargement it was explained that
everything is in place and in line for Croatia to become the 28th EU Member
State. The other candidate countries are:

Iceland (country population smaller
than Malta), member of Schengen. and EEA.

Turkey is very strategic and
important for Europe, the process is however taking very long as there are a
lot of issues of contention

The Balkan regions , which are facing
a lot of economic problems and the biggest problems relate to ethnicity and
minorities.

Malta is in favour of accession as
long as the criteria are respected.

Water bowser owners, members of GRTU,
held a general meeting last Thursday to discuss the continued demands from the
Malta Resources Authority (MRA). In its past communications to water bowser
owners MRA has reiterated the need or the obligation of these owners to install
E-Tracking devices on their vehicles.

GRTU is all in the favor of upgrades in
the sector which is much needed during the most months of the year. However the
main issue at present is whether once the price of this resource is
established, will it allow space for this sector to continue sustainable
operations. We agree that nothing is free of cost for no one but we also need
to be made aware of the full cost of operation in the sector. It is already a
cost to have a metered borehole and a yearly finance fee. Hence E-Tracking cost
will further jeopardize this sector.

MRA needs to wake up to today's
reality.  Issuing a written notice to
water bowser operators to install an E-Tracking device is the last stance from
this so called regulation. During this general meeting for the sector, it was
agreed that licenses for operation (authorization) is to be paid (€200), but no
tracking fee is to be paid. Once the full cost of operating in the sector is
made known, then GRTU will discuss the sustainability issue with the said
sector.

Whilst water is here to stay, and we
should save every drop, we need to make sure that livelihood of self-employed
in this sector is also protected. A complicated issue! Yes! But what is not in
this island of ours!

GRTU has last Friday congratulated Hon
Minister De Marco and Hon Minister Jason Azzopardi for the splendid idea of
having stands with live crafts set up in Merchant's Street. This is  the kind of boost and initiative GRTU has
been insisting on for a long time. We want to see more!

GRTU's Director General and EESC
Employers Representative Vincent Farrugia has this week attended the Single
Market, Production and Consumption Bureau and Section meeting. The European
Consumer Agenda was discussed. Mr Farrugia stated that customers are the
lifeblood of reputable, reliable businesses and meeting consumer needs is the
purpose of their business. For the most part, going well beyond the minimum
legal requirements is the key to retail success and plays an important role in
giving individual businesses a competitive edge in a highly competitive market
place.

GRTU's Director General and EESC
Employers Representative Vincent Farrugia has this week attended the Single
Market, Production and Consumption Bureau and Section meeting. The European
Consumer Agenda was discussed. Mr Farrugia stated that customers are the
lifeblood of reputable, reliable businesses and meeting consumer needs is the
purpose of their business. For the most 
part, going well beyond the minimum legal requirements is the key to
retail success and plays an important role in giving individual businesses a
competitive edge in a highly competitive market place. Competition helps
consumers get a good deal, and drives innovation and productivity. Strong
competition results in driving down prices and driving up quality and choice.
It must be stressed that ultimately consumers bear the cost of burdensome
regulation through higher prices.

As the closest link in the chain to
the consumer, any measure taken in the field of consumer protection/safety, has
an impact on businesses. Mr Farrugia highlighted the importance of a framework
within which businesses and consumers can work together and with the EU
institutions to meet the needs and address concern of both consumers and
businesses. Moreover, both consumers and businesses need to be educated and
informed so they are aware of their rights and duties, including providing
support for consumer groups and information programmes for businesses and
consumers.

An important point on the agenda was
State Aid. Some years ago Mr Farrugia had asked the then Commissioner for
Competition Neelie Kroes about the State Aid ratio between aid to SMEs and aid
to larger enterprises and she replied that SMEs only receive 1% of State Aid.
Mr Farrugia therefore welcomed the Commission recommendation that within 3
years the ratio is expected to improve to 90/10. Mr Farrugia congratulated the
EU Commission on introducing other elements in favour of SMEs such as the
simplification of procedures.

GRTU's EU Desk has last week participated in the
EESC's very insightful Media Seminar which addressed the topic of 'Freedom of
the Media'. Media experts from civil society organisations, European and
national bodies and business, as well as journalists, discussed freedom of
reporting and professional journalism in the EU and its neighbouring countries.

Important aspects discussed during the meeting were
the development of Social Media and the important role these play as an
alternative and effective way of engaging individuals. GRTU will in fact in the
coming month launch a facebook page  with
the intent of communicating itself better to members. Recent social and
political turmoil in Europe and beyond seems to have brought into focus the
role played by social media in helping people to organise, to stage protests
and to express their views. The conference spoke about the phenomenon of
citizen journalism.

The conference examined the increasing political and
financial pressure journalists are working under and the impact of that
pressure on the quality of journalism and on democracy.

Even though in Malta there is no real oppression to
journalists and journalism we do have the strong involvement of politics and an
issue with giving the people unbiased and non-politicised information. The
conference called for real and independent journalism and above all good
journalism. Good journalism is ethical, it is sensitive not to offend the
audience and tells the truth. It does not put unnecessary chaos and feeling of
unsafety. The conference called for journalists to acknowledged the power of
the media on people's perceptions and feelings therefore it called on them to
be sensitive in their reporting.