Category: Archive – 2012

The latest interim forecast of the European Commission, presented on 23 February, points to a stagnation of the EU economy and to a mild recession in the euro area. However, modest growth is predicted to return in the second half of the year.

Growth revised downwards

Against the backdrop of a waning growth momentum and continued low confidence, real GDP is expected to stagnate in the EU and to shrink by 0.3% in the euro area in 2012. This constitutes a downward revision of 0.6 percentage points in the EU and 0.8 percentage points in the euro area compared to the autumn forecast of 10 November 2011. Contrary to earlier interim forecasts that built on the analysis of the seven largest EU economies, projections for the current forecast are based on estimates for all EU Member States.
Divergences between Member States remain pronounced.

At the level of the individual Member States, growth divergences remain pronounced. In 2012, GDP growth is forecast to be positive in seventeen countries (Bulgaria, Denmark, Germany, Estonia, Ireland, France, Latvia, Lithuania, Luxembourg, Malta, Austria, Poland, Romania, Slovakia, Finland, Sweden and the United Kingdom) stagnant in one (Czech Republic) and negative in nine countries (Belgium, Greece, Spain, Italy, Cyprus, Hungary, the Netherlands, Portugal and Slovenia). Growth will be highest in Poland (2.5%), Lithuania (2.3%) and Latvia (2.1%) and lowest in Greece (-4.4%) and in Portugal (-3.3%).
Inflation easing only gradually

On the back of persistently high energy prices, inflation has remained higher than forecast in autumn and is expected to decelerate slowly over the forecast horizon. For 2012 as a whole, the HICP inflation rate is now projected at 2.3% in the EU and 2.1% in the euro area. In 2011, it is estimated to have amounted to 3.1% in the EU and 2.7% in the euro area.

Domestic and global demand prospects

The economic outlook is conditioned by a less supportive global economy, with the ongoing weakening of global demand weighing on net European exports. EU business and consumer confidence are still at low levels, although a recent slight improvement has been noted as the financial sector has shown signs of stabilisation. Also, in the light of subdued demand, credit conditions are not expected to constrain investment and consumption over the forecast horizon. Overall, a gradual return of confidence and a recovery of investment and consumption are expected in the second half of 2012.

Risk assessment

Despite some favourable developments in recent weeks that made the risks to growth more balanced, the downside risks remain substantial. If an aggravation of the sovereign-debt crisis were to result ultimately in a credit crunch and ensuing lower domestic demand, this would probably entail a deeper and prolonged recession. Upside risks to GDP include a stronger-than-expected rebound of confidence and more resilient global demand, stemming from e.g. a stabilisation of housing markets in the US.

Context

The European Commission usually publishes economic forecasts four times a year – comprehensive spring and autumn forecasts in May and November as well as smaller interim forecasts in February and September. As mentioned above, contrary to previous interim forecasts that built on the largest Member States, projections for the current publication are based on estimates for all EU and euro area Member States respectively. The next spring forecast will be published on 11 May 2012.

The EU and its Member States have taken a series of important decisions that will strengthen economic and budgetary coordination for the EU as a whole and for the euro area in particular. As a result, the EU's interdependent economies will be better placed to chart a path to growth and job creation.

 

Surveillance of economic and fiscal policies

The economic and financial crisis has revealed a number of weaknesses in the economic governance of the EU's economic and monetary union. The cornerstone of the EU response is the new set of rules on enhanced EU economic governance which entered into force on 13 December 2011. It has four main components:

Stronger preventive action through a reinforced Stability and Growth Pact (SGP) and deeper fiscal coordination: Member States are required to make significant progress towards medium-term budgetary objectives (MTO) for their budgetary balances. Expenditure benchmarks will now be used alongside the structural budget balance to assess adjustments towards the MTO. An interest-bearing deposit of 0.2% of GDP will be imposed on non-compliant euro-area countries.

Stronger corrective action through a reinforced SGP: The launch of an Excessive Deficit Procedure (EDP) can now result from government debt developments as well as from government deficit. Member States with debt in excess of 60% of GDP should reduce their debt in line with a numerical benchmark. Progressive financial sanctions kick in at an earlier stage of the EDP. A non-interest bearing deposit of 0.2% of GDP may be requested from a euro-area country which is placed in EDP on the basis of its deficit or its debt. Failure of a euro-area country to comply with recommendations for corrective action will result in a fine.

Minimum requirements for national budgetary frameworks: Member States should ensure that their fiscal frameworks are in line with minimum quality standards and cover all administrative levels. National fiscal planning should adopt a multi-annual perspective, so as to attain the MTO. Numerical fiscal rules should also promote compliance with the Treaty reference values for deficit and debt.

Preventing and correcting macroeconomic and competitiveness imbalances: Over the past decade, Member States have made economic choices which have lead to competitiveness divergences and macroeconomic imbalances within the EU. A new surveillance mechanism will aim to prevent and correct such divergences. It will rely on an alert system that uses a scoreboard of indicators and in-depth country studies, strict rules in the form of a new Excessive Imbalance Procedure (EIP) and better enforcement in the form of financial sanctions for Member States which do not follow up on recommendations.

Enforcement is strengthened by the expanded use of 'reverse qualified majority' voting. Under this voting system, a Commission recommendation or proposal to the Council is considered adopted unless a qualified majority of Member States votes against it.

 

Why did you become an entrepreneur? I feel that industry has always been in me and I like it because it is and something productive and positive.

How have you come to chose your line of business?

When I was younger I used to work as a secretary in a paint manufacturing factory and I liked the way paint and various products were being done.

Where did you go on your last holiday?

Lipari – I liked the place a lot especially its quietness, glamour and nature.

What is your earliest memory?

The sea front house we had in kalkara when I was a child and when my father gave me a duck as a present.

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

I am happy the way I am but I admire Margaret Thatcher and Madonna!

Green MT , the National Authorised Waste Packaging Scheme is responsible for the emptying and maintenance of 275 Bring In Sites in Malta. (Dome shaped ex Wasteserv). The Maltese islands are facing gale force winds later today Friday 8th March, and should last up to eighteen hours. With this in mind Green MT assessed those sites that are prone to such winds and instructed one of its contractors to chain together 12 bring In Sites in Marsascala, Mgarr Malta, Sleima and St Julians. The works are being supervised by waste managment supervisors at the Ministry of Resources and Rural Affairs.

Green MT is proactive is such instances as gale force winds not only create heavy breakages but could also be the cause of accidents of damage to third party properties. Once the weather forecasts were made known , we took ourselves to task and by early afternoon , all these sites would have been chained . The possibility of these sites being a hazard would as such be diminished.

Green Mt is without fail working hand in hand within our Local Councils to make sure that through proactive approaches all residents cooperate in more recoveries of separated recyclable waste.

The Malta Environment and Planning Authority , MEPA has issued a draft document in respect to Areas of Containment, and Open Storage Areas in Malta and Gozo for Public Consultation.

The scope of this document is to prepare guidelines to clarify the way forward on Areas of Containment. These Areas of Containment are identified in the Central Malta Local Plan (CMLP), North West Local Plan (NWLP), and the South Malta Local Plan(SWLP) and predominantly accomodate industrial or commercial related activities located outside development zone.

GRTU will be holding meetings in relation to this document with its members in these Areas of Containment across Qormi, Mosta, Naxxar, Lija, Iklin, Burmarrad, Ghaxaq, Kirkop, Luqa, Mqabba, Qrendi, Safi, Siggiewi, Zabbar, Zebbug and Zurrieq.

Meetings will also be held in Gozo with construction contractors, haulers, gas distributors, owners of heavy machinery, unscheduled bus owners, and all operators of heavy machinery . Open Storage Areas in Gozo have for now been a prickly thorn on the Government Agenda. Whilst this document is open for consultation GRTU hopes that Government will also keep its feet on the ground after hearing submissions from the business community.

Small and Medium Sized Enterprises are the heart of Malta's economy. Businesses cannot keep on waking up daily to new bureaucratic regulations which suit only the white collar boys sitting over a desk. It is time for these boys to take themselves to task. We can no longer tolerate a situation where an SME that has been in place for over twenty years is now faced with so many tantamount problems , and the only reason for this , is because they either want to expand their operations or hold firm their operations.

Our motto is only one…"halluna ha nahdmu"…and this is another legislation that if not handled correctly by the Government of the day would mean doom and gloom for many. Of course time will tell but the self employed and all small businesses are watching very slowly …time is ticking!

GRTU has once again requested an extension to the Malta Environment and Planning Authority in respect to a consultation document issued late last year in relation to Environmental Permitting and General Binding Rules which will formally effect all major sectors of GRTU.

The request was granted and the extension is now until 7th May 2012. GRTU is insisting that susbtantial amounts of meetings have to be held with the presence of MEPA to explain to the small and medium sized enterprises the reason behind these new environmental permits and how they will effect the business community. In a meeting held with MEPA officials, Micheal Sant and Ms Rachel Decelis a list of GRTU sectors was submitted so that MEPA would indicate which of these sectors are likely to be involved.

After receiving feedback from MEPA it has transpired that a large majority of these sectors would be involved and as such a Schedule of Meetings is being scheduled and presented to MEPA by 9th March 2012. MEPA officials will be present for these individual sectorial meetings and GRTU members will be advised of the schedule shortly.

Environmental Permitting is a part of corporate social responsability, but GRTU on behalf of its members has to make sure that in the process of this revamped permitting system, SMEs do not bear the brunt of bureaucracy or additional expenses that might make their businesses no longer sustainable.

Green MT, l-Iskema Nazzjonali Awtorizzata' ghall-Gbir ta' Skart tal-ippakeggjar flimkien mal-Kunsill Lokali tas-Siggiewi ser iniedu inizjattiva' biex jingabar izjed hgieg mir-residenzi gewwa is-Siggiewi. Din il-gimgha l-iskema Green MT ghaddiet 2,000 kontenitur tal-plastik biex jinghataw lill-residenti fis-Siggiewi li huma interessati li jippartecipaw f'din l-inizjattiva'.

 

L-Iskema diga' qassmet il-fuq minn elf kontenitur permezz tal-Eco Councillors ghal din il-gabra li ser tibda isehh darba fil-gimgha kull nhar ta' Tnejn, u ser tibda fid-9.30 ta' filghodu. Din l-inizjattiva' ser isehh ukoll fi zmien qasir gewwa l-Ghasri fil-gzira ta' Ghawdex. Diversi Kunsilli Lokali Maltin u Ghawdxin diga' urew interess kbir f'din l-inizjattiva' u sa l-ahhar ta' mejju hu ppjanat li sebgha Kunsilli ohra ser ikunu qedghin jaghmlu parti minn din l-inizjattiva'.

L-Iskema Green MT hija l-ikbar Skema tal-ippakeggjar fil-pajjiz. Bizzejjed wiehed jghid li s-sena li ghaddiet minn ammont ta' 17,000 tunnellata ta' skart riciklabbli li wasal fil-facilita' tal-Wasteserv gewwa Sant'Antnin, kwazi 14,000 tunnellata waslu permezz ta' gbir mill-iskema Green MT. Is-sena li ghaddiet Green MT gabret il-fuq minn 2,800 tunnellata ta' hgieg mill-Bring In Sites u minn stabilimenti kummercjali f'Malta u Ghawdex.

L-Iskema temmen li ghad fadal hafna hgieg li jitpogga fis-suq li finalment jispicca gewwa l-‘engineered landfill' permezz tal-gbir mill-borza imhallta jew hekk imsejha l-borza s-sewda, u ghalhekk qed tiehu din l-inizjattiva' f'diversi lokalitajiet biex il-hgieg ikun jista' jingabar u jigi rriciklat.

Mill-Kunsill Lokali tas-Siggiewi, l-iskema Green MT gabret 277,000 -il kilo ta' skart riciklabbli fis-sena 2011, li jfisser gbir kull gimgha ta' 5328 kilo, jew 34 kilo ras ghal ras f'sena. Dan huwa rizultat inkoragganti izda l-iskema qed timmira li tilhaq gbir ta' 45 kilo ras ghal ras fis-sena 2012 minn din il-lokalita'.

Fis-Siggiewi , Green MT fil-gimghat li ghaddew ghamlet viziti bieb bieb permezz tal-Eco Councillors biex jippromovu din l-inizjattiva'. Green MT tirringrazzja lill-Kunsill Lokali tas-Siggiewi ghal inizjattivi li jkompli juri favur ambjent isbah u inqas skart fil-lokalita'.

GRTU has this week organised an information session for members in collaboration with the Internationalisation Unit at Malta Enterprise. Mr Robert Falzon presented the services and support offered by the Internationalisation Unit to local enterprises of all sizes. Malta Enterprise aims to support SMEs to develop and diversify their activities, penetrate new markets, increase competitiveness, develop new products and services, and consolidate their existing market share.

Scope of Internationalisation events:

Market & field research

Obtaining new sales leads

Launching new products or services

Other forms of business cooperation (franchising, licensing, etc)

Delegation visits

Malta Enterprise presented the list of Delegations for 2012. The delegation visits provide opportunities for Joint Ventures, Technology Transfer, Licensing and Franchising, Exports and Trading. Malta Enterprise will assist through the organisation of business seminars, matchmaking events, trade exhibitions, follow-ups and market research. Participants in delegation visits have 60% of the cost of travel and accommodation covered by Malta Enterprise.

Business Delegations

Feb – South Africa, Johannesburg & Cape Town

March – Israel, Tel Aviv

April – Qatar & Saudi, Doha & Riyadh

May – Italy, Milan

June – Tunisia, Tunis

July – Germany, Cologne & Munich

Sept – Sweden & Denmark, Stockholm & Copenhagen

Oct – Ireland & UK, Dublin & London

Oct – Hong Kong & China, Hong Kong & Shanghai

Nov – UAE & Kuwait, Abu Dhabi & Kuwait City

Participation in Fairs

Participation at International trade fairs are a unique and rewarding experience. Participation will undoubtedly allow enterprises to reap a number of benefits since they will be able to experience the market on a first hand basis, discover new insights, and establish potential business partners. Malta Enterprise will financially support part of the Rental of exhibition space / stand, Stand construction services, Freight expenses incurred for shipping materials / exhibits required to setup and run the stand, Travel and Per Diem.

Trade Fairs

Jan – ICE, UK (I-Gaming)

May – EBACE, Switzerland (Aviation)

May – LIBYA Build, Libya (Building & Construction)

Sept – MONACO BOAT SHOW, Monaco (Maritime)

Oct – SIAL, France (Food & Beverage)

Gateway to Export

Malta Enterprise administers an initiative aimed at encouraging Micro and Small Enterprises to assess whether or not they are ready to venture into new markets through their exports. The initiative's aim is to give participating enterprises the skills, know-how and confidence to excel in the international marketplace. A Business Specialist will mentor the participating enterprises through the various stages of preparing for this exciting programme and will help towards the company's readiness for export. It is a structured, yet flexible, programme that can be completed in around 18 months. They offer a step approach which will provide SMEs with all the necessary tools.

Other Support provided

Company to company match-making

Overseas group promotion in selected media and through promotional material

Preliminary export advice on potential markets and overseas trade events

Contacts with specific business entities, Chambers of Commerce and EEN agencies in selected countries

 

Malta Enterprise has launched a new scheme to assist small and medium enterprises invest in improving their products, services and process and obtain quality marks or certifications which attest such improvements.

Through the Quality+ scheme, Malta Enterprise may approve deductions from taxable income amounting to 150% of the eligible expenditure incurred for achieving the required improvement. The approved amount would be deducted from the taxable income of the beneficiary, resulting in an effective reduction in the payable tax.

Eligible expenses, up to a maximum of €20,000, include costs incurred in the process of achieving a recognised quality certification related to processes, products or services; achieving a recognised environmental certification; adopting of an operations manual and the acquisition of a franchise licence; a due diligence exercises leading to the acquisition of a licence required for participation in a value chain; or in the acquisition of a quality mark.

Amongst others, companies which obtain certifications or quality marks such as ISO 9001:2008, ISO 14001, ISO 22000, MS1500:2004, Hazard Analysis Critical and Control Point (HACCP), BSI Kitemark and CE Mark would be eligible for assistance.

The fiscal support that will be available through this scheme should make it easier for business to carry out investments that lead to superior products, services of higher value or more efficient processes.

More information can be obtained from the Incentive Guidelines on ME website by following this link

http://support.maltaenterprise.com/quality.