Author: SME Chamber

EESC employers representative and GRTU Director General Vincent Farrugia has this week participated in the 479th EESC Plenary session, where the Opinion which he drafted as rapporteur on Tackling double taxation in the single market was approved and adopted as official EESC Opinion to the Commission Communication COM (2011) 712 final.

 

The issue of double taxation affects most especially individuals and SMEs who cannot afford the lengthy and costly legal and administrative procedures to seek a positive remedy.

The Commission is proposing an EU Forum on Double Taxation to deal with this issue. The EESC on through a previous opinion on the removal of cross border tax obstacles recommended the establishment of a Tax Observatory, that would be more effective as it doesn't simply discuss but observes and acts. It is essential for the single market that the Commission moves as fast as possible from discussion to action. The EESC is therefore recommending for the proposed Forum to be only a first step leading to a full fledged Observatory. The Commission is doing very well in identifying the cross border tax obstacles but citizens and small business owners especially seek determined action to remove these obstacles. Double taxation should be a top priority.

The EESC will be using all possible media presentation and seek the support of associations representing business and civil society together with direct pressure on MEPs to ensure that the tax obstacles hampering the fulfillment of the single market objectives are tackled through a coherent and comprehensive action programme. The EESC is committed to this aim.  

In view that the EU is currently
considering whether or not to commence FTA negotiations with Japan, the
Economic Policy Department would like to have views from the private sector on
the possible negotiations of an agreement.

 

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.

 

GRTU is delighted to announce the appointment of Lucy Neville-Rolfe as the new President of EuroCommerce, GRTU is member of EuroCommerce who represents retail, wholesale and international trade interests, following her election at this week's EuroCommerce General Assembly. Lucy will take up her three-year mandate on 1 July.

As Executive Director (Corporate & Legal Affairs) and member of the Board at Tesco, Lucy oversees corporate governance across six EU member states and brings a wealth of international experience to the European commerce sector. She joined Tesco in 1997 from the Cabinet Office. She also held a number of senior Government positions at the Prime Minister's Policy Unit in 10 Downing Street, at BIS and at DEFRA.

Lucy's key priorities will be to strengthen the visibility of the commerce sector among policy-makers and increase their understanding of the sector's contribution to restoring growth and creating jobs.

Current President Dr. von Leoprechting says, "We are delighted that Lucy Neville-Rolfe has been elected. With extensive experience in both business and government, Lucy brings with her an energy and proven track record of building strong alliances between people and organisations. She has been engaged in European issues throughout her entire career and is ideally placed to represent the interests of the commerce sector in the EU."

Lucy Neville-Rolfe comments, "I am passionate about European business and am looking forward to getting started. If we are to establish sustainable growth in Europe, it is crucial that large and small businesses work collaboratively together so that we can achieve outcomes that benefit us all."

Christian Verschueren, EuroCommerce Director General says, "We would like to sincerely thank Dr. von Leoprechting who has laid the foundation for a stronger EuroCommerce. He has led the organisation through a challenging period for the commerce sector, and has spearheaded the creation of a dialogue with the supply chain partners. We look forward to working with Lucy over the coming years."

GRTU has already expressed its compliments and best of luck to Ms Neville-Rolfe on her new appointment. GRTU looks forward to work with Ms Neville-Rolfe soon.

The European Commission proposes to improve business opportunities for EU firms in procurement markets. The main objective of the initiative is to help open worldwide public procurement markets and to ensure European businesses have fair access to them. The proposal also aims to ensure that all companies (both European and non-European firms) are on an equal footing when it comes to competing for business in the EU's lucrative public procurement market.

 

Public procurement affects a substantial share of world trade flows and amounts to €1 000 billion per year. In the EU, public procurement represents up to 19% of GDP and is an essential lever for kick-starting growth again, especially during an economic crisis. The EU's public procurement market is traditionally very open. However, this is not always matched by a similar degree of openness by our trading partners. Worldwide, only a quarter of the world's procurement market is open for international competition. The restrictions applied by our trading partners affect sectors where the EU is highly competitive, such as construction, public transport, medical devices, power generation and pharmaceuticals.

The new initiative proposed by the Commission today will increase the incentives for the EU's trading partners to open up their public procurement markets to EU bidders. It will ensure that EU companies can compete in the internal market with foreign companies on an equal footing. This initiative shall increase business opportunities for EU companies, both in the EU and internationally; boost the potential for small- and medium-sized enterprises to operate in a globalised economy; and increase employment and promote innovation in the EU.

Michel Barnier, European Commissioner responsible for the Internal market and Services, has declared: "The EU should no longer be naïve and should aim for fairness and reciprocity in world trade. Our initiative builds on Europe's belief that the opening up of public procurement generates benefits at global and European levels. We are open for business and we are ready to open up more, but only if companies can compete on an equal footing with their competitors. The Commission will remain vigilant in the defence of European interests and European companies and jobs."

Karel De Gucht, European Commissioner for Trade, said: "I am a firm believer in making sure trade flows freely and government procurement must be an essential part of open trade markets worldwide. It's good for business, good for consumers and brings value for money for taxpayers. This proposal will increase the leverage of the European Union in international negotiations and with our partners to open up their procurement markets for European companies. I am confident that they will then get a fair opportunity at winning government contracts overseas and so generate jobs."

The EU commitments taken in the WTO Government Procurement Agreement and bilateral trade agreements are fully respected with this initiative. The initiative clarifies EU international commitments for the European contracting authorities in a legally binding manner.

Key aspects of the proposal for a Regulation are the following:

The important levels of openness of the EU's public procurement market are confirmed.

The Commission may approve that EU contracting authorities, for contracts above €5 million, exclude tenders comprising a significant part of foreign goods and services where these contracts are not covered by existing international agreements.

In the event of repeated and serious discrimination against European suppliers in non-EU countries, the Commission will have at its disposal a mechanism allowing it to restrict access to the EU market, if the country outside the EU does not engage in negotiations to address market access imbalances. Any restrictive measures will be targeted, for example by excluding tenders originating in a non-EU country or imposing a price penalty.

Finally, the proposal increases transparency on abnormally low offers in order to combat unfair competition by non-EU suppliers on the European market.

Background

The 2011 Commission Communication on a "Single Market Act" and the 2010 "Trade, Growth and World Affairs" both highlighted fair competition and access to public procurement markets as one of the key tools for economic growth and job creation, in particular in the context of the recent economic crisis.

In its conclusions of 23 October 2011, the European Council called for a Commission proposal for an EU instrument for opening up public procurement, pointing out that Europe will continue to promote free, fair and open trade whilst at the same time asserting its interests in a spirit of reciprocity and mutual benefit in relation to the world's largest economies.

In December last year, the European Commission presented an overall programme to modernise public tendering in the EU (IP/11/1580). Today's initiative complements this domestic effort with a set of rules for the external dimension of the procurement policy.

The EU has traditionally been an open economy and an advocate of free trade. This includes public procurement. The EU's approach is not entirely shared worldwide. Most of the EU's major trading partners operate restrictive public procurement practices which discriminate against EU suppliers. The current economic crisis has increased the use of such practices.

See also MEMO/12/201

Further information

http://ec.europa.eu/internal_market/publicprocurement/modernising_rules/international_access/index_en.htm

EXPLORE is a
series of six information sessions, each session targeting a different thematic
area, which will include different Managing Authorities and National Contact
Points delivering a presentation on the different funds under the Multiannual
Financial Framework 2014-2020.

Participants will also have the opportunity to
participate in a brokerage session, whereby the representatives from Managing
Authorities and National Contact Points will be present in an adjacent room to
answer queries on a one-to-one basis. 

The
first EXPLORE session will promote EU funding programmes related to the culture
and the arts sector for non-governmental organisations (NGOs) and businesses
active in the sector, as well as local councils that are interested in
implementing ‘artistic' initiatives in their localities.

 

The EU
Funding Programmes that will feature in this session are:

Erasmus+

Creative Europe – Culture Sub-Programme

Creative Europe – Media Sub-Programme

 

A talk
about other national funds namely: the Malta Arts Fund, Malta Film Fund, Video
Games Fund and Kreattiv will also be delivered during the information session.
Personnel from the Malta Arts Scholarship and Valletta 2018 Foundation will
also be present for the brokerage session.

 

Should
you be interested in taking part, kindly fill in the form below and
reply on by not later than Tuesday, January 28,
2014.

Il-Malta-EU Steering & Action Committee (MEUSAC) flimkien mal-Awtorità ta' Malta dwar l-Ambjent u l-Ippjanar (il-MEPA) se jorganizza laqgħa ta' konsultazzjoni dwar proposta tal-Kummissjoni Ewropea dwar ir-reviżjoni tal-lista ta' sustanzi ta' prijorità fil-qasam tal-politika dwar l-ilma (Direttiva 2000/60/KE u Direttiva 2008/105/KE). Sustanzi ta' prijorità huma dawk is-sustanzi kimiċi identifikati fost dawk li jippreżentaw riskju sinifikanti għall-ambjent akkwatiku.

Din il-proposta tinkludi fost l-oħrajn iż-żieda ta' ħmistax-il sustanza ta' prijorità, inklużi prodotti għall-protezzjoni tal-pjanti, sustanzi użati fil-prodotti bijoċidi, kimiċi industrijali u ingredjenti mediċinali attivi. Il-Kummissjoni qed tipproponi wkoll titjib fil-monitoraġġ u r-rappurtar ta' dawk il-kimiċi li jikkontaminaw l-ilma, kif ukoll mekkaniżmu sabiex tinkiseb informazzjoni aħjar dwar il-konċentrazzjonijiet ta' sustanzi oħrajn li jniġġsu u li fil-futur jistgħu jiġu kkontrollati fuq livell Ewropew.

Il-laqgħa ser issir bil-Malti nhar it-Tlieta, 3 ta' April 2012, fl-10.00 a.m., f'Dar l-Ewropa, il-Belt Valletta.

Biex tirreġistra, inti ġentilment mitlub tikteb lil

Why did you become an entrepreneur? Not by choice…I was thrown in at the deep end when I joined my father, Edgar Ellul, in the business at 16 years old.  It was an interesting and challenging time for me, especially being a woman in a mostly-male dominated world.  Together we introduced new ways of doing business, and coming from living abroad for 10 years, customer service and satisfaction were our main priorities and the cornerstone to developing a thriving concern within a few years of taking over.

 

How have you come to chose your line of business?

Again, not by choice.  My grandfather, Joseph Ellul, started up GG soon after WW2, also with some innovative ideas of his own, like a chain of several newsagent/stationery shops all around Sliema.  I was fascinated by him even at a young age and was always running around with him on his visits to his little empire whenever I used to be here on holiday.  Although I did not choose this line of business, the family influence was very strong and I wanted to be a part of this small niche he had carved into the local market within a short time.  This tradition is still being carried on today with my own 2 children, Rachel Hyzler and Jeffrey Farrugia, making their own way within the company to become leaders one day too.

Where did you go on your last holiday?

The Scottish Highlands, which was like going to the end of the world.  What I liked most was seeing more animals than people, plus driving for miles without seeing another person or car in sight.  A welcome change from Malta for sure!

What is your earliest memory?

I was about 5 yrs old when I was injured in a minor car accident in Canada.

If you could chose to be someone famous who would you be?

Mother Theresa, because she did nothing but good in the world in such a natural way.  Her actions show us humility, compassion and love, and she treated everyone equally with respect and dignity, no matter who they were or where they came from. 

The Finance Ministers of the Eurozone are to finalise a deal next week on enlarging the Eurozone's capacity to bail out a country with debt problems- The aim is to provide greater protection against the possibility that sovereign-debt problems might affect large eurozone countries such as Italy and Spain.

The German government had opposed increasing the €500 billion limit set for the eurozone's permanent bail-out fund, the European Stability Mechanism (ESM), which is to start operations in July. But it has softened its stance and agreed to the use of €200bn in unallocated funds from the temporary bail-out fund, the European Financial Stability Facility (EFSF), which was set up in the early months of the sovereign-debt crisis. So the overall size of the eurozone's protective firewall will be €700bn, though the effective lending capacity will be less.

The deal will be agreed at the end of next week, when finance ministers and central bankers from the member states of the EU gather in Copenhagen for an informal meeting (30-31 March).

IMF assistance

Increasing the eurozone's bail-out capacity is a pre-condition for members of the International Monetary Fund (IMF) to provide additional funds for lending to eurozone countries.

Christine Lagarde, the head of the IMF, has warned that without an increase in available funding, the likes of Spain and Italy might get into difficulties financing their debts on capital markets.

The annual general meeting of the IMF will be held in Washington, DC, on 20-22 April. At the meeting, member countries are expected to agree to increase the fund's capacity to lend to the eurozone by $500bn (€380bn).

GRTU has this week written to the Department for contacts following a number of complaints received from its members, artistic service providers, stating that tenders were being issued with thresholds outlining that: "The maximum amount of sub-contracting must not exceed 40 % of the total contract value. The main contractor must have the ability to carry out at least 60 % of the contract works by his own means."

This, GRTU has found, is prohibitive and heavily limits the participation of such micro service providers and self-employed because while being able to fulfil an important part of the tender requirements, their share still constitutes much less than the 60%. GRTU is speaking especially for those micro and self-employed enterprises who's main operation relies most especially on their artistic ability and do not have the capital to invest in materials of production such as printing machinery.

In most cases the price of the art is much lower than the actual production, as such the 40% limit of the total contract value is prohibitive to the graphic designer, who is still able to deliver a finished product instead of submitting his own quotation.

GRTU called to find a solution to this problem that is creating an unjust disadvantage to these enterprises.