Author: SME Chamber

The European Union's Competitiveness
and Innovation Programme (CIP) is assisting public and private entities,
particularly SMEs, to embark on eco-innovation projects through which they make
better use of resources or reduce negative environmental impact of their
operations.

Around €35million are available for the
funding of projects through the Eco-Innovation initiative this year, with the
European Commission funding up to 50% of the project's eligible costs for
successful applicants.

By encouraging projects for the first
market piloting of products, techniques, services and processes that reduce
emissions, use resources efficiently, facilitate recycling and so on,
Eco-Innovation represents a key opportunity to overcome sustainability
challenges whilst making the economy even stronger and more competitive.

Details about the CIP's Eco-Innovation
initiative – for which the yearly Call for Applications is open until September
6, 2012 – were given during an information session organised by Malta
Enterprise, which hosts the CIP's National Contact Point for Malta.

Pedro Fernandez Alvarez, the National
Contact Point for Malta within Malta Enterprise, said that the Eco-Innovation
initiative helps good ideas with a proven track record but which are not fully
marketed due to residual risks, overcome barriers to become fully-fledged
commercial prospects ready for use by the consumer, or business and industry.

A number of projects which made
successful use of the CIP's Eco-Innovation assistance were also showcased,
amongst which a printing company which converted paper mill sludge into
absorbent material used to clean up oil and chemical spills in harbours, as
well as a waste-collection company which is automatically sorting various
metals by quality for recycling.

Besides giving details about this
year's open Call and highlighting the benefits for innovative Maltese SMEs, Mr
Alvarez also explained how to write a good proposal to ensure that applications
stand a better chance of being approved and encouraged participants to contact
Malta Enterprise for assistance.

Another presentation was delivered
during the information session by George Francalanza, Head of Business First,
who focused on the assistance and guidance provided by the one-stop-shop for
businesses also located at the Malta Enterprise head office in Pietà. These
include a wide variety of schemes and incentives which are aimed at supporting
enterprises undertaking innovative projects as well as initiatives aimed at
improving their impact on the environment.

On his part, the Head of the EU
Business Development at Bank of Valletta Mark SciclunaBartoli spoke about SMEs
access to finance when embarking on eco-innovation and other projects. He gave
details of other funding assistance available to implement not only
eco-innovative but also other projects, such as the JEREMIE MicroCredit scheme
administered by BOV through which enterprises may obtain a loan of up to
€510,000 at advantageous interest rates.

Further information on the CIP and the
Eco-Innovation initiative may be obtained by contacting the CIP National
Contact Point within Malta Enterprise on 2542 0000 or , or by
visiting www.cipmalta.com.

 

GRTU has this
week held another successful New Libya Investment Law information session. One
of the main services offered by GRTU today is helping local enterprises explore
business opportunities outside the Maltese shores through hosting of foreign
business delegations, participation in delegations abroad, finding partners,
exploring new markets, etc…

Libya is
understandably a market of interest for local enterprises both for its
opportunities and historical relations with our country. The way of doing
business in Libya has changed drastically following the revolution and is being
accompanied by changes in the legal system, including the laws concerning
investment.  GRTU wanted local
enterprises to be prepared and protected when approaching Libya and it is to
this end that GRTU Council Member and Libya relations representative Mario
Debono invited a Libyan consultancy to explain this New Investment Law. The
consultancy's main area of specialty is the conduct of legal studies, analysis
and set-up companies, financial advisory in addition to providing corporate
solutions.  They also provide an
important strategic gate-way to doing business in Libya.

The meeting was
very insightful. It was explained that when eying Libya one has to start by
understanding the current situation. Libya is in an era of transition
politically, economically and socially and it is still recovering from the
consequences of the revolution. Libya remains a highly challenging market, and
while there are potential investment opportunities, there are corresponding
great challenges to successfully operating in Libya.

The revolution
has led to a great deal of confusion particularly among foreign investors
because the shifting of regulation and procedures and a weak regulatory
environment have not inspired confidence in the market. Following a reform
process enacted by the former regime, a slight growth in the economy took place
in the banking system and amongst SMEs.

The
main challenges of the Libyan market remain:

Lack of sufficient information on Libyan companies

Lack of transparency in the tendering process

Instability in terms of security, regulation and political environment

Underdeveloped banking system

Lack of skilled and educated labour

Corruption

Lengthy bureaucratic process

Difficulty finding reliable Libyan partners

When
considering market entry it is important that any processes are
official to guarantee security and protection of the investment. Foreign
Investors have five main options when considering market entry, each of
which have certain advantages and restricitons:

Representative Office

Branch Office

Joint Venture Company with a local firm

Registration under Investment Law No. 5 of 1997 (Openness to Foreign Investment)

 

Mentioned also where the Prohibited
activities for foreign investors, requirement for getting approval, privileges
and exemptions and an overview of the tax system.

Further information may be obtained by
contacting Abigail Mamo at GRTU on or 21232881.

Green MT and the Mellieha Local Council
have once again partnered together to help keep the popular Ghadira beach clean
this summer. A number of recyclable bins have been placed in strategic
positions along the beach to provide a means of reducing the waste that is
dumped yearly on this beach by the thousands that use it.Not only will this
initiative reduce the amount of waste dumped on this beach, it will allow for
the waste to be separated at source. Green MT would like to thank the Mellieha Local Council for
their cooperation in making this project another success.

Competitiveness Council
– Digital Single Market and Governance of the Single Market
: The Single Market plays a key role in overcoming Europe’s present economic challenges. It is crucial to make the Single Market work on the ground, including the Digital Single Market, by effectively implementing and enforcing Single Market principles and rules.

 

This requires political will and strong commitment by all stakeholders, especially European institutions, national parliaments and authorities at all levels. Furthermore, focus is needed on special national regulation. Each year more than 700 new national technical regulations are notified to the Commission. They all create barriers to the free movement, unnecessary administrative burdens and extra costs for businesses. Better governance is clearly needed, and concrete and measurable indicators should be developed as well as efficient monitoring. Effective and rapid problem solving mechanisms should be established, including online dispute solution systems. The need to complete the Digital Single Market is necessary in order to promote growth and competitiveness.

E-commerce and e-procurement should be facilitated through concrete measures. Better instruments for cloud computing, including swift approval of the draft directive on data protection and a better framework for ensuring intellectual property rights are welcome. Public Procurement The ministers are expected to discuss state of play of the negotiations on the draft directive on public procurement. They are in particular expected to discuss the deadlines for introducing e-procurement and the division of tasks between the Commission and national authorities. It is not expected that they will reach agreement on a common approach.

The Council’s work is positive in this regard and we support a swift introduction of e-procurement in EU public procurement. This can be done simply by ensuring the possibility to collect and deliver tender and bidding material electronically. But there is still a need to go further in simplifying EU’s procurement rules. In this line, DI is extremely concerned about the EP’s draft report on the directive. Foreign Affairs Council (trade) Free Trade agreement EU/Japan The ministers will discuss the state of play of the preparations to start negotiations with Japan on an FTA.

The main challenges in the preparations have been disagreements on technical trade barriers, access to public procurement markets and the juridical connection of an FTA with a political framework agreement. While government hope for a finalisation of the scoping exercise during this presidential period, the outlook for the coming month seems quite bleak. Europe must promote free trade for growth. The EU should continue to pursue bilateral free trade agreements with emerging economies and strategic partners. The demand for reciprocity must not become an argument for protectionist measures. Instead of protectionism, the ongoing scoping exercise with Japan should be a steppingstone to begin real and ambitious negotiations, as it is clear that an FTA will have positive economic effects through increased trade and creation of jobs.

Green growth / green trade liberalization

The Council will discuss a paper from the Commission on how to liberalize the international market for green products. It is expected that most Member States will support the Commission’s intensified efforts to ensure market access for climate friendly products. This discussion is encouraging, as liberalization will contribute to European export and growth.

EU/US high-level working group for jobs and growth

The ministers will discuss the state of play of the transatlantic dialogue on trade and investment relations. Progress in the transatlantic cooperation is welcomed. EU-US relations are vital, as the two economies are closely intertwined. Eliminating transatlantic tariffs alone could boost EU GDP by 0.5 pct. But the agreement must be even more ambitious and go far beyond tariffs.

The high-level working group is expected to publish an interim report on their work in June this year. By eliminating barriers within tariffs, standards, investments and regulation between the transatlantic economies, we can create a sort of transatlantic Internal Market for goods, services and knowledge, and harvest the total potential of our large economies.

Informal General Affairs Council

The Multiannual Financial Framework

Building upon the result of today’s General Affairs Council, the Council will reconvene for an informal meeting on 10-11 June to finalise the so-called ‘negotiation tool box’ for the EU’s next multiannual financial framework (MFF). Before the MFF reaches the European Council of 28-29 June, the MFF negotiations will be handed over to the finance ministers at ECOFIN who will debate the overall size of the MFF and of the individual headings.

Growth policies are on the top of the political agenda for all European leaders. However, as most leaders are fiscally constrained, due to their commitment to balanced budgets, the reform of the MFF comes at a perfect time. Reform the budget and redirect EU’s funds so that every euro cent is used to invest in growth.

The reform of the EU budget is a growth opportunity – all the EU leaders have to do is turn ‘growth talk’ into action. For the business community the priorities are clear. Use the EU budget as a long-term investment tool. This means more funds to invest in infrastructure (transport, energy and ICT). It also means investing in research, innovation and development. To do this, without increasing the EU budget, the reform of the Common Agricultural Support must be significantly accelerated.

Financial and Economic Council

New VAT strategy

Ministers of ECOFIN adopted conclusions on a new VAT strategy. Improvements in the VAT system are important due to its’ impact on day-to-day business. The changes will improve the functioning of the Single Market, thus increase growth and tax revenues. The Council supports greater involvement of businesses in developing the VAT rules. For businesses it should be as simple to conduct business in other EU Member States as it is to operate at national level. In reality, studies show that companies have abstained from doing business in another EU country due to the burdens of VAT compliance.

The EU needs a VAT-strategy that sets the path for creating a simpler and harmonised VAT system. Such a system should facilitate intra-community trade to the extent that this trade is not significantly riskier, more burdensome or complicated as compared with domestic trade. Real improvements in the VAT system require political willingness and compromises by the Member States, but the benefit for all would be increased growth – and thus increased tax revenues. We hope that the Council will continue with an even more ambitious approach and agree on a strategy setting both short and long-term goals.

Capital Requirements Directive (CRD IV)

The Ministers also reached an agreement on a general approach on the Capital Requirement Directive. Responses to the regulatory failures which led to the financial crisis are welcome. Hopefully, they can prevent similar events from occurring in the future. Despite all good intentions, tighter capital requirements in the financial sector will have a wide impact on the real economy. The new framework will require banks to reduce their lending and increase the cost of credit. Moreover, banks are likely to become more reluctant to invest in companies. Altogether, this will impair companies’ access to finance and thus their ability to prosper and create growth.

At a time when economic recovery can only be ensured by increased corporate investment, the implementation of reform measures could create an overall shortage of finance. In particular, this will affect SMEs which are highly dependent on bank lending. Policymakers must obviously deal with regulatory failures. However, they must also ensure financing conditions for companies enabling them to create growth and jobs in Europe.

Forthcoming Commission Proposals

30 May 2012 Growth and employment: country specific recommendations and Convergence report 2012

6 June 2012 Single Market: communication to the June Council on deepening the Single Market for services and communication on strengthening its governance Energy: communication on renewable energy strategy Digital agenda: Regulation on electronic transactions in the internal market

12 June 2012 (in Strasbourg) Communication on the new integrated strategy against human trafficking

20 June 2012 Legislative proposal on the protection of financial interests of the EU including by criminal law

11 July 2012 Revision of directive on clinical trials in the pharmaceutical sector

Europe needs new ideas to boost its growth potential. Industrial innovation is one of the key drivers to improve our competitiveness. This is why the Commission is launching today a new public consultation, which is meant to provide input for the mid-term review of the industrial policy communication planned for September 2012. This review will focus on developing a limited number of new initiatives that can deliver substantial results in the short- to medium-term.

Moreover new policy initiatives should have a demonstrable and significant impact on competitiveness, growth and jobs. The European Commission draws the attention to this important component of its economic growth strategy on the occasion of today's Conference "Mission Growth: Europe at the Lead of the New Industrial Revolution".

The conference is expected to give strong impetus to the debate about new ideas for the growth strategy focusing on the real economy and industrial innovation in view of promoting a European leading role in the new technological development (see MEMO/12/383). High-ranking speakers at the conference include the President of the European Commission José Manuel Durão Barroso, Vice President Antonio Tajani, Professor Jeremy Rifkin, several EU Ministers and industrial leaders.

European Commission Vice President Antonio Tajani, responsible for Industry and Entrepreneurship said: "Europe's economy cannot survive in a sustainable way if it cannot rely on a strong and profoundly reshaped industrial base. Industry is a big contributor to the real economy producing real values. All efforts need to be undertaken to secure a modern, resource efficient, competitive and robust industry in Europe. I call on all who can and like to contribute to the planned reshape our industrial policy to let us know what they think should be done.

“Public Consultation webpage: http://ec.europa.eu/enterprise/policies/industrial-competitiveness/index_en.htmMore information on industrial competitiveness

The consultation

The main objectives of the consultation are to discuss what policy priorities the European Commission should focus on and to gather recommendations from stakeholders on how to boost competitiveness of European industries. The public consultation will encourage stakeholders and others to consider questions like:

• Which are the major policy priorities facing European industry today?

• How can businesses themselves better respond to these issues?

• What can policymakers do to address the issues at Member state, local or regional level?

• What can policymakers do to address the issues at EU level? What are the issues covered by the consultation? The questionnaire identifies a number of key areas for possible policy intervention and asks for stakeholders' views on options for changes.

Some of the issues covered are the following:

• SME-friendly business environment and entrepreneurship

• Access to finance and risk capital • Industrial innovation and technologies policy

• Skills, restructuring and structural change

• Improving the Single Market

• ICT, internet and cross-border sales

• Better and more consistent regulation

• Energy infrastructure and competition

• Internal transport market

• Environmental regulations

• Resource-efficiency and recycling

• Energy and climate

• International market access and global competition

• Access to raw materials

The original industrial policy flagship adopted in October 2010 identified the importance of a strong, diversified and competitive industrial base for the EU economy and set out a strategy for industrial competitiveness, sustainable economic growth and job creation. The review will contain a comprehensive progress report on the implementation of this strategy and its reinforcement.

The public consultation runs until 7th August. A summary report will be published on the public consultation webpage.

In 2011, the European Ombudsman, P. Nikiforos Diamandouros, helped more than 22 000 European citizens, companies, NGOs, and associations, either by investigating complaints, answering information requests, or giving advice via his online interactive guide. More than 18 000 citizens used the guide to obtain advice on where to turn with their problems.

The Ombudsman received 2 510 complaints in 2011, compared to 2 667 in 2010. He opened a record number of 396 investigations into alleged maladministration by the EU administration. This represents an increase of 18% compared to the previous year, when 335 inquiries were opened.

In 2011, Spain, with 361 complaints, overtook Germany (308) with the greatest number of complaints, followed by Poland (233) and Belgium (190). Relative to population, however, the greatest proportion of complaints came from Luxembourg and Cyprus.

At the presentation of his Annual Report 2011 in Brussels, Mr Diamandouros said: "As well as helping thousands of European citizens to find solutions to their individual problems, my inquiries also benefit citizens more generally by contributing to the improvement of the quality and responsiveness of the EU administration, and by clarifying what the administration is doing and why. The inquiries into radiation levels in imported food after the Fukushima disaster, into potential conflicts of interest in EU institutions, and into the range of languages used in public consultations all illustrate this broader impact".

As in the past, the most common subject matter of the Ombudsman's inquiries in 2011 was lack of transparency in the EU administration, including refusal to release documents or information. A welcome development this year was that the percentage of transparency-related cases decreased from 33% in 2010 to 25%. Other cases concerned problems with the execution of EU contracts or calls for tender, unfairness, and discrimination.

In 66% of all inquiries closed in 2011 (212 cases), the Ombudsman was able to achieve a positive outcome, because the institutions concerned accepted a friendly solution proposal, settled a problem, or submitted a satisfactory reply. He found maladministration in 47 cases, a slight increase compared to 40 cases in 2010. Most of the inquiries opened in 2011 concerned the European Commission (58%), followed by the EU Agencies taken together (13%), the European Personnel Selection Office (11%), and the European Parliament (4%). In 2011, the Ombudsman transferred 1 288 complaints to national or regional ombudsmen in the Member States, the European Parliament's Petitions Committee, the European Commission, and other problem-solving mechanisms, such as SOLVIT or Your Europe Advice.

The Ombudsman's Overview 2011 (in the 23 official EU languages) and the full Annual Report (currently available in English, with the 22 other language versions to follow in July) are available at: http://www.ombudsman.europa.eu/activities/annualreports.faces The European Ombudsman investigates complaints about maladministration in the EU institutions and bodies. Any EU citizen, resident, or an enterprise or association in a Member State, can lodge a complaint with the Ombudsman.

The Ombudsman offers a fast, flexible, and free means of solving problems with the EU administration. For more information: http://www.ombudsman.europa.eu

Selection of 2011 cases

Commission clarifies food contamination levels after Fukushima accident

In March 2011, an earthquake and tsunami damaged the nuclear power plant in Fukushima, Japan.

The accident led to increased radioactive contamination. The Ombudsman received several complaints from citizens about a lack of information concerning changes made to the maximum permitted levels of radioactive contamination for foodstuffs imported from Japan to the EU. After the Ombudsman's investigation, the Commission submitted the requested clarifications and explained that, initially, the maximum radiation levels permitted in imported foodstuffs were higher than those permitted in Japan itself, but were lowered to the Japanese levels a few weeks later. http://www.ombudsman.europa.eu/en/press/release.faces/en/10844/html.bookmark

NGO receives EUR 70 000 from the Commission

The Ombudsman helped settle a dispute between the European Commission and the NGO Migration Policy Group (MPG) concerning an EU project launched as part of the "European Migration Dialogue". After an audit, the Commission issued a recovery order for more than EUR 130 000 because MPG had delivered supporting documents for staff costs too late. MPG complained about the "disproportionate" nature of the recovery order. The Commission eventually accepted the Ombudsman's friendly solution proposal and refunded EUR 70 000 to the NGO. http://www.ombudsman.europa.eu/en/press/release.faces/en/11209/html.bookmark

Potential conflicts of interest in 'revolving door' cases

The European Food Safety Authority (EFSA) in Parma is in charge of risk assessment in the EU regarding food and feed safety. Its role is to provide independent scientific advice, in collaboration with national authorities and other stakeholders. A German NGO turned to the Ombudsman, complaining that EFSA did not adequately address a potential conflict of interest concerning the move of the Head of EFSA's Genetically Modified Organisms (GMO) Unit to a biotechnology company. After his investigation, the Ombudsman called on EFSA to strengthen its rules to avoid potential conflicts of interest in 'revolving door' cases. In March 2012, EFSA published new rules with a view to avoiding potential conflicts of interest. http://www.ombudsman.europa.eu/en/press/release.faces/en/11106/html.bookmark

Commission should publish public consultations in all EU languages

The European Commission regularly carries out public consultations in order to allow citizens, companies, and other stakeholders to participate in the EU's decision-making process. A Spanish lawyer complained that public consultations are often only published in English. The Ombudsman shared the complainant's view that citizens cannot be expected to participate in a consultation which they are unable to understand. According to the Ombudsman, multilingualism is essential for citizens to exercise their right to participate in the democratic life of the EU, which is guaranteed by the Lisbon Treaty. He called on the institution to publish its public consultation documents in all 23 EU languages or, alternatively, to provide translations upon request. http://www.ombudsman.europa.eu/en/press/release.faces/en/11057/html.bookmark

Progress towards a low-carbon economy in the EU and some of its Member States is falling dangerously behind current targets, the European Economic and Social Committee (EESC) has warned. To avoid missing its energy targets, the EU must accelerate progress and take society with it.
The warning came in the EESC's opinion on the Energy Roadmap 2050, which was adopted by the body's plenary session.

In the view of the Committee, the EU fails to recognise the extent to which it is falling short of its own targets. "The decline of heavily polluting production processes in the EU, their growth in other parts of the world and subsequent import into the EU disguise the extent of the shortfall", says Pierre Jean Coulon (Workers' Group, France), the opinion's rapporteur.

The EU aims to cut its greenhouse gas emissions by 80-95% by 2050 whilst simultaneously guaranteeing security and competitiveness of supply. The EESC is not urging new long-term targets, but it is pushing for clear medium-term goals that, if well monitored, would guide progress over the coming years.

As energy investments take decades to implement and pay off, it is in the best interest of the EU and its Member States to set indicative targets for 2030 and to back them up with appropriate policies, the EESC argues. Investment decisions are not helped by the pricing of carbon emissions, which the Committee deems "too low and volatile to give a useful signal to investors". "Changing this would avoid the lock-in of carbon-intensive plants", says Richard Adams, co-rapporteur of the opinion.

Energy efficiency is not being driven fast enough and Europe must step up its action to establish common standards for energy efficiency in all sectors, the EESC argues. Turning to renewables, it cites unsteady government support and in some cases local resistance as barriers to progress.

It is particularly dismayed at the slow pace of modernisation of grid and energy storage facilities. "Reaching the 2050 renewable targets will require very determined and consistent political leadership", says Mr Coulon.

In the short term, the investment needed to meet these targets will lead to energy price increases and extra costs for consumers and businesses, according to the Committee. This makes it more urgent to have all the effects "fully costed, debated and accepted by all concerned", it notes. "In the longer term, it will make the European economy more resilient and competitive globally than if it simply continues with present policies".

"Public acceptance of energy choices is a challenge for Europe's democracies today", says Mr Adams, adding: "The 2050 Roadmap must be used not only to launch the widest possible debate among Europeans, it should also promote engagement at every level – personal, regional, national and EU". "The challenge is not just to reach our objectives but to convince civil society that they are attainable", added Mr Coulon.

The Committee reiterated its call for the establishment of a European civil society forum to boost the flow of information within the EU by regularly bringing together all stakeholders for discussion of the energy transition up to 2050. 

As Libya gears up for its first elections in more than 60 years, EU foreign affairs chief Catherine Ashton calls on Europe to rise to the challenge of assisting Libya in its post-revolutionary transformation. "The EU must be tireless in supporting the transition to a democratic, stable and prosperous Libya," she writes.

Ashton also says, "During none bitter months of conflict… the EU stood by the Libyan people in their efforts to create a better future. It is essential that we now renew our support." Newly appointed head of the EU delegation to Libya Peter Zsoldos writes that he is "optimistic" for Libya's future, but warns the EU to be prepared for "emotional political confrontation as Libyans find their democratic voice". The Parliament Magazine's Libya feature also includes exclusive coverage from Tripoli of the first EU-Libya civil society forum.

The Malta Information Technology Agency (MITA) through the eSkills Alliance and MEUSAC would like to invite the general public to a seminar on eSkills for Employment and Growth.

Wednesday, 6th June 2012 | 08:30 – 13:00 | MITA, St. Venera

The demand for eSkills has been growing rapidly in the last decade. Indeed it is envisaged that by 2015 90% of all jobs in Europe will require some set of eSkills whatever the service or service sector. Nevertheless a number of eSkills shortages, gaps, mismatches as well as a persistent digital divide are affecting productivity growth, competitiveness, innovation, employment and social cohesion in Europe. Malta, like other EU Member States, needs to secure a sufficient professional eSkills base and to enable its citizens to strengthen their eSkills in a process of effective lifelong learning. During this seminar, a number of speakers will highlight the relevance of eSkills across Europe, including Malta.

There will be two workshops which will tackle Lifelong learning in ICT, and the Industry’s perspective and employment opportunities arising from eSkills. The workshops will provide a platform to discuss the challenges and benefits arising from a strong eSkills base in Malta. This discussion will be helpful for policy-related discussions and formulations.

Refreshments will be served during the workshops.

Should you be interested in attending kindly contact by not later than Tuesday, 5th June 2012.