Author: SME Chamber

Indifferent to the continuous
pressure by the GRTU since the announcement that the Employment Aid Programme
(EAP) scheme was going to be halted, the EAP scheme is till today still closed.
The authorities` justification of halting the scheme was that it had been
over-subscribed, pure mismanagement, and that employers seemed disinterested to
getting their refunds back, which we find very hard to believe. The
announcement came in May and till today the scheme is still closed.

The scheme was very beneficial for
SMEs to employ. It was a scheme that bridged the gap between education and
unemployment and the world of work. 7 groups identified as disadvantaged groups
were the target: youths under 25 and within 2 years of completing full-time
education and have not yet obtained a first regular paid employment, any
persons that have been absent from work and education for more than 2 years, a
single adult looking after dependents, any person who has not attained upper
secondary level qualifications and made redundant during the last 6 months,
person older than 50 who does not have a job, long term registered unemployed,
any person having a registered disability.

Thanks to the EAP these 7 groups
found their way into the world of work and the figures were very satisfying. At
a time when Europe is in wide alarm on unemployment levels, especially youth
unemployment, the Maltese Authorities felt comfortable closing this scheme.
What was the result? Unemployment figures started going up.

Statistics issued by NSO on 3^rd
October 2012 state "that in August, the number of persons registering as
unemployed in Malta and Gozo stood at 6,139 and 682 respectively. Accordingly,
during the twelve-month period to August, the number of registered unemployed
went up by 352 on the mainland and by 4 in Gozo". When analyzing statistics
into more detail one would realise that persons registering for employment
during July 2012 stood at 6,664 and during August 2012 it stood at 6,821. An
increase of 157 in one month.

GRTU had strongly opposed closing the
scheme from the very beginning. If mistakes were made they had to be corrected
and therefore we agreed that a stock take needed to be taken but this was made
at the expense of job seekers and employers. GRTU argued that an immediate
solution had to be found and whatever the reason it had to be put aside and
solved but the scheme had to be kept open even if it meant putting in
Government funds.

We are reaching stagnation. The
extremely efficient schemes operated by Malta Enterprise help enterprises
create projects and invest in their business but employers are feeling the lack
of an appropriate employment incentive which is halting progress, expansion and
employment.

GRTU calls on Minister Cristina to
take the issue under hand and see to what needs to be done to what needs to be
done to reinstate the scheme with immediate effect.

GRTU has also included the permanent
reinstatement of the EAP together with other measures in our budget proposals.
The Ministry for Finance, the Ministry for SMEs and the Ministry for Employment
need to come together to make this work. Those that hold power are responsible
to ensure Malta does not fall into the unemployment trends like so many other
EU countries.

Vincent Farrugia GRTU Director General,
has participated organized by ENFI: Leader or Follower-Europe in the multipolar
world, as member of the Employers Bureau of EESC and as EESC rapporteur on five
opinions related to the Single Market.

They would appreciate to be informed
whether there are any specific concerns or sensitivities for Maltese economic
and industrial sectors, in particular in relation to offensive and defensive interests
by 4 October 2012.

More specifically, there may be
concerns in relation to exports of tuna, electronics, the import of cars and
the industry involved in car parts, medical devices, pharmaceuticals and
non-tariff barriers in relation thereto.

Contact Abigail Mamo @ GRTU for more
information.

According to the survey, carried out
last June in all EU Member States, there was a 9% increase over November 2011
in the number of citizens who look at the EU in a positive way. Moreover, half
of those questioned, described their countries' membership of the EU as a ‘good
thing'.

In terms of the sense of identity felt
by those questioned, the survey shows that there has been an increase in the
number of Europeans who regard themselves only in terms of their national
identity, rather than identifying themselves as being both citizens of their
country and European. This is not the case for Malta as 60% of Maltese citizens
still consider themselves as both Maltese and European. Only 37% of the
population considers itself as ‘only Maltese'.

The degree of knowledge about the EU
and its institutions is relatively poor, with the majority of Europeans saying
they know little about them and more than a third of them unable to name three
EU institutions.

However, it is noteworthy that the
European Parliament was the institution most often mentioned by respondents and
was rated as the institution that best represents the EU. Surprisingly, a
quarter of Europeans already know the date of the next European elections –
June 2014.

Job creation and fighting unemployment
(EU 72%; Malta 56%), reducing Member States' public debt (EU 37%; Malta 50%)
and increasing purchasing power and combating inflation (EU 35%; Malta 42%)
came in as the top priority anti-crisis measures for EU citizens.

On 18 September 2012, the EESC adopted
an opinion on the cost of non-Europe, an issue which has resurfaced on the
European agenda not only because it is important in mapping a way out of the
financial crisis, but also because it is crucial to the success of the Europe
2020 strategy and the next Multiannual Financial Framework. It is a useful
perspective from which to take forward the debate on pursuing European
integration at a time of rising anti-European sentiment among citizens, growing
populism and extremism.

The idea of the cost of non-Europe is
not new; in 1988, Paolo Cecchini drew up a study for the European Commission on
the cost of non-Europe in relation to the single market, which played a
decisive role in the implementation of economic and monetary union.  In its opinion Towards an updated study of
the cost of non-Europe, the EESC is now proposing that Mr Cecchini's study be
revamped to reflect current circumstances: the cost of incomplete integration
in the context of the economic crisis. 

"Contrary to the populist ideas
being voiced in certain political quarters in a number of EU countries, current
economic problems are not related to excesses in Brussels, but to the fact that
European integration is fundamentally incomplete," said George Dassis,
rapporteur for the opinion and president of the EESC Workers Group.

The Member States – under pressure from
the financial markets and from new binding institutional rules – seem to be
heading for a period of austerity that jeopardises the growth demanded by the
financial markets. Faced with this downward spiral, which is reducing people to
poverty and destitution, the EESC calls for decisive steps to pool expenditure
at European level, thus creating a virtuous circle of growth. This can only be
achieved if the necessary political will is in place to take those decisive
steps. The EESC emphasises the cost of taking the wrong path: the cost of
non-Europe. Henri Malosse, president of the Employers Group, made an
unambiguous statement on this point: "Come on decision-makers, it is time
to act. Harness the huge potential of Europe's 500 million citizens. You have
no right to let them down!"

With all these factors in mind, a much
broader analysis of the cost of non-Europe is needed than was proposed in the
Commission's study on The cost of non-Europe: the untapped potential of the
European single market. The EESC calls for a full accounting of the cost of
non-Europe and the impact on employment and growth, and for the Europe 2020
strategy to include objectives for reducing this cost, accompanied by a clear
action plan and a systematic evaluation of its progress. The results of a
comprehensive study will be the strongest argument against eurosceptics and the
doubts about the EU referred to by Luca Jahier, co-rapporteur for the opinion
and president of the Various Interests Group: "In spite of some outstanding
successes and a world-wide profile, the European Union continues to harbour
doubts about itself and to cause others to doubt it."

The Malta Council for Science and
Technology will be participating in this year's Researchers' Night activities
which will be held in Valletta on Friday 28th September from 6pm onwards.
All Valletta will be transformed by
Science in the City, Malta's first science and art festival, as part of the pan
European event – Researchers' Night. Dances, music, exhibitions, comedy and
more will run from St. James Cavalier, through Valletta's streets and end in
St. George's Square.

The Council will be transforming the
car park of the Central Bank of Malta (at Castille Square) into a Science
FunFair with colourful tents. Animators will be assisting young visitors with
various science exhibits. A series of 45 minutes live science shows will be
presented by Professor Ċelli on the hour between 6:00 pm and 11:00 pm.

In St. James Cavalier, the science
and art exhibition called 'How?' (Adrian Abela, Elisa Von Brockdorff, Matthew
Farrugia, Michael Xuereb, Raphael Vella, Sarah Scicluna and the rubberbodies
collective) explores different scientific phenomena through an artistic lens,
while Tricia Dawn Williams' piano recital touches mathematics and music, there
will also be talks about the health properties of local honey, and even more
activities.

Auberge D'Italie will feature a kids'
area with 3D models, a play and other fun events. While the streets of Valletta
will be transformed with street art from Emmanuel Bonnici's doughnut shaped bus
called 'Joyride' to Raphael Vella's brain sculpture called 'Cortex'.

The star event is in St. George's
Square with a live science show, hosted by Pawlu Borg Bonnaci and Angie Laus
taking the audience, through laughs, experiments, dance, and entertainment for
the whole family. Palazzo Ferreria will host Italian musicians performing
L'Ultima Regola del Gioco co-ordinated by the Malta Association Of Contemporary
Music. While a carnival-style parade of Maskri Grotteski, also inspired by
science and scientists, will unite all of these locations.

Other entertaining events will be
going on throughout Valletta. For more information and a full programme
checkout our website (www.scienceinthecity.org.mt) or Facebook (www.facebook.com/ScienceInTheCityMalta). Should you have any queries,
please email us on

Science in
the City festival is supported by the EU FP7 Programme and the Malta Arts
Fund.  The event is coordinated by The University of Malta, in partnership
with the Valletta Local Council, MEUSAC, Malta Council for Science and
Technology, Malta Council for Culture and the Arts, Where's Everybody, Malta
Chamber of Scientists, Notte Bianca, Microsoft, iCreatemotion, Lily Agius
Gallery, St James Cavalier and the University's Research, Innovation and
Development Trust (RIDT).

The Malta Financial Services
Authority has become aware that an entity called Brown-MLT Finance Group
(http://brown-mlt.net/) which purports to specialise in various forms of
consultancy and finance is claiming to be a company registered in Malta with
registration C3144, having an address at 55A, Birbal Road, Balzan BZN 9017,
Malta.

The MFSA wishes to alert the public,
in Malta and abroad, that  Brown-MLT
Finance Group is not a company registered in Malta and  has no legitimate connection with the
registration number and address indicated. Brown-MLT Finance Group is not
authorised by the MFSA to provide any type of financial service. Accordingly, the
MFSA warns the public against dealing with this company.

The MFSA would like to remind
consumers of financial services not to enter into any financial services
transaction unless they have ascertained that the entity with whom the
transaction is being made holds a licence to provide such services from the
MFSA or another reputable financial services regulator.

A list of entities licensed by the
MFSA is available from the Malta Financial Services Authority, and can be
viewed on  www.mfsa.com.mt.

GRTU has today attended the MEUSAC Core
Group meeting as member and was pleased to be addressed together with the other
Core Group members present by the new Ambassador of Malta to the EU Ms Marlene
Bonnici. Ms Bonnici explained how the system of representing Malta's position
works and the various entities involved and particularly emphasized how important
the involvement of the social partners and civil society was in ensuring that
Malta's position does reflect the interest of Malta and therefore that
interests of members are presented and discussed.

The Ambassador explained how
complicated and intensive the work carried out in Brussels is and what a task
it was for her office in Brussels, MEUSAC and the line Ministries as well as
other entities to not only communicate what is going on but communicate in a
way that is understood and carry out a consultation Ms Bonnici continued saying
how much she is learning in her new job on the multitude of subject she is
touching with and on both the formal and informal lobbying methods.

The second subject on the agenda was
the Commission proposal on the Banking Union. The position held by the EU is
that simple coordination is no longer enough – closer supervision and
integration is now needed at EU level to avoid future banking crises, restore
confidence in the financial system and protect savers. Prof Joseph Bannister,
chairman of the MFSA, stated that a banking union was in need and we wanted it
earlier however certain aspects of it are very concerning.

While banks have been operating
increasingly across borders, oversight of their activities has remained
national. A shared currency and close financial integration make the eurozone
particularly vulnerable to banking crises spilling over from one EU country to
another. The solution, the Commission believes, is greater supervision at EU
level. Three supervisory bodies  were
already set up in 2011 to help coordinate the work of national regulators and
ensure EU rules are applied consistently.

Professor Banister outlined that one of
the concerns was related to sovereignty where the European Central Bank (ECB)
would be gaining new powers to monitor the performance of the 6 000 or so banks
in the eurozone. The arrangement would be known as the single supervisory
mechanism. The ECB would take over tasks such as authorising banks and other
credit institutions, ensuring they have enough (liquid) capital to continue
operating even when sustaining losses and monitoring the activities of
financial conglomerates. If a bank breaches – or is at risk of breaching –
capital requirements, the ECB would be able to ask the bank to take corrective
action. National supervisors would meanwhile continue to carry out day-to-day
checks.

Prof Banister stated this would mean
the ECB would be allowed to walk into the national banks anytime to investigate.
This is not a procedure we are used to and would create panic and confusion.
The ECB on its own can also decide to close a bank.

The Commission is planning for the ECB
to start the process in January 2013, monitoring some of the banks that have
received or requested bailouts from the public sector. All banks would then be
supervised by January 2014. We believe however that if successful, which is
highly questionable, it will take much longer.

Malta's position is that overall supervision is necessary but
it should stop at that.

The conference was
held on the 6^th and 7^th September 2012 at the Charlemagne
Building in Brussels. GRTU was represented by Marcel Mizzi. The conference was
addressed, among others, by the Commission President, José Manuel Barroso, the
President of the European Parliament, Martin Schulz, the President of the
European Council, Herman van Rompuy and the Secretary-General of the OECD,
Angel Gurria.

The conference was structured around
five main topics, namely, Building a dynamic European labour market, Impact of
the crisis on employment, Sectors with high job creation potential, Employment
policy throughout the life cycle and 
Pathways to full employment.

José Manuel Barroso opened the
conference with a speech emphasizing how important this conference was and that
it was being held at a very opportune time. He highlighted the problems being
increasingly faced by European young people to find jobs and how jobs had
become more precarious for those already employed. He highlighted figures that
show that more than 10 million people across the Member States are facing long
term unemployment. He stated that the commission would soon publish details of
a Youth Package establishing a youth guarantee scheme and a quality framework
to facilitate traineeship.

Barosso said that he was worried about
the way negotiations are going as regards a common European Social Policy.
Although ultimately the social dimension has to be first tackled at government
level, the EU must have a holistic social approach. He stressed that the EU
must adopt a job centered approach to solve these problems, starting with
boosting the demand for labour by adopting supply side policies, promoting
skills matching across borders and making employment governance crucial by
providing multi lateral surveillance.

Barroso concluded by saying that the
economic and financial crises has had significant impact on EU economic growth
and society as a whole. Dismantling the welfare state is not an option. We must
pull our resources together to overcome these challenges and make Europe the
social Europe everyone wants to build.

Van Rompuy also started by stressing
the importance of the European employment challenges and the importance of the
conference. He also outlined employment statistics and explained that
employment levels have gone down in most member states and that in Spain and
Greece the situation had reached monstrous proportions. The speaker dissected
the phenomenon into distinct divisions, namely, the competition from well
educated foreign workforces and the problems in the job supply side.  He looked at the problem from a
competitiveness point of view and that if we tackle European competitiveness,
everything else should ultimately fall into place. He also firmly believes that
the Commission should promote targeting specific groups and promoting promising
sectors such as Green Jobs, White jobs and ICT Jobs which he called "Copper
Jobs".

Van Rompuy gave a timeline of what the Commission
has been doing since 2010 to tackle this issue, namely by directing available
EU funds, incentivizing employers to hire more people, and setting out clear
targets. He concluded by emphasizing the role of the social partners in the
changes and reforms that have to be made.

Martin Schulz's introduction was
perhaps the most dramatic. He sighted high youth unemployment as threatening
the legitimacy of the EU and undermining the legitimacy of democratic
institutions. Unemployed people see the EU as the anonymous bureaucratic power
that has money to save the banks but no money to guarantee employment for them.
Schultz cited a "job_intensive" financial recovery plan which the Commission
has already called for. In spite of these initiatives the outlook is still
bleak.

Schultz iterated that Europe needs to
guarantee that young people in the member states are either employed or in
further training within four months of leaving school. He said that a draft of
this proposal was on its way to the European Parliament. He concluded by saying
that in spite of the challenges he sees that the problems we face can be
overcome by reflecting on our values and strengths.

During a later part of the conference, the delegates were
separated into groups and various related subjects were discussed in detail.
Presentations were made by academia as well as by Members of the European
Parliament and other experts. Representatives from countries outside the EU
were invited to share their experiences and best practices were discussed in
detail. The adoption of measures in effected countries was also discussed at
length.