Category: Archive – 2013

The Commission has today
published the long-awaited proposals on the ‘payments package' of a revised
Payment Services Directive (PSD), a Regulation on multilateral interchange fees
(MIF) and a communication on SEPA governance.

These proposals are a
very significant step to bring competition and transparency into how payments
are made and paid for. They should allow retailers to pass savings on to
consumers, bringing them real benefits across Europe in these times of
hardship. Claims by card schemes that retailers would not pass on cost savings
to consumers are nonsensical: price competition and the elimination of
inefficiencies are in the DNA of retailers. The proposed MIF caps and other
measures will give merchants more control over costs, and consumers choice of
payment options. The proposals however falls short of the ideal: merchants had
hoped for the abolition of the MIF as a concept, certainly on debit. A move
away from percentage fees to flat, cost-based transaction fees would have been
more reasonable, especially for debit cards.

Retail also welcomes the
measures contained in the revision of the PSD and the communication on SEPA governance.
The opening of payments markets to new entrants will significantly improve
competition and stimulate innovation. A better balance between payment
providers and payment users on governance is also welcome and should ensure
fairer long-term decision-making.

We very much welcome:

That
the MIF regulation will apply to all consumer card transactions, domestic and
cross-border and that it is a per transaction cap. However, the two-year delay
for implementation at domestic level will unnecessarily delay the bulk of the
consumer benefit from being realised.

The
removal of the ‘honour-all-cards' rule. This will give merchants the freedom of
choice to steer consumers away from over-expensive cards.

The
ability to operate real cross-border acquiring. This will allow true economies
of scale for merchants and should bring card fees down further in the long-term.

The
inclusion of third-party payment providers within the PSD. This will inject
some much-needed competition into the payments market.

Enabling
third-party providers to initiate payments. The ability to access the necessary
account information will help innovative players offer cheaper, more efficient
services and make full use of technological advances in e-payments.

What could be improved:

The
level of caps: we still urge the legislators to reduce the MIF on consumer
debit to zero and improve the level on credit. We

The
persistence of ad valorem fees: we see no justification for the maintenance of
percentage MIFs – especially on debit transactions.

Commercial
cards, which carry the highest MIFs, should be covered by the regulation as well.

The European Economic and
Social Committee (EESC) was requested to draft an opinion on the proposals
issued today by the European Commission. The EESC Bureau appointed GRTU's
Director General and EESC Employers Representative Vincent Farrugia to prepare
a report to be approved firstly by the EESC Single Market, Production and
Consumption Section (INT) and afterwards presented for voting at the EESC
Plenary on the 10th December of this year to be adopted as EESC Opinion.

Government has this week
launched a wide public consultation process on the next generation of funds,
those covering the period 2014 – 2020. These funds are very important for the
Malta's national development from an economic, social and environmental
perspective in order to ameliorate the standard of living of citizens.
Therefore it is very important that we plan well how these significant amount
of funds should be spent in order to achieve long lasting positive results.

There are two very
important factors to consider.

1.  The
amount of money is substantial, €1.1bn, but compared to the endless shopping
list Malta has these are not sufficient.

2.  We
cannot just choose anything and expect to get funding for it.

The European Commission
has identified challenges and gaps that need to be addressed and these are the
priorities where the funds will be focused. 
The priorities outlined are the following:

1.  Innovation-friendly business environment

o   infrastructure
to develop R&I excellence and promoting centres of competence in particular
those of European interest (such as a Centre of Excellence on Adaptation to
Climate Change or Energy Efficiency and Green Technologies). Malta should
finalise its National Strategic Plan for Research and Innovation 2011-2020 in
all its aspects and bring it in line with the requirements for a 'research and
innovation strategy for Smart Specialisation'.

o   Increasing
indigenous private sector research and development activity. Sectors that have
already been identified include health and biotechnology, energy, climate and
environmental technologies, ICT and high value-added manufacturing, aviation,
businesses based on intangible assets such as cultural and creative industries
as well as the maritime and aquaculture sectors.

o   Promoting
entrepreneurship and competitiveness of SMEs, including businesses in
agriculture, fisheries and aquaculture by establishing a clearer link with
research and innovation capacities (business-academia link).                                           

o   Incentivising
investment in higher value-added sectors: Important areas which show potential
for cluster formation and internationalisations are the health and
biotechnology sectors, energy and environmental technologies, ICT, high
value-added manufacturing, the aviation sector, as well as the maritime and
aquaculture sectors.

2.  Environment-friendly and resource-efficient
economy

o   Large-scale
investments in low-carbon and environment-friendly production: potential for
the generation, supply and use of wind and solar power, as well as
cost-effective clean ocean energy shall be explored.

o   The
promotion of energy efficiency in SMEs, agricultural businesses, public
infrastructure and the housing sector.

o   Reducing
landfilling and increasing the share of recycling and recovery of waste, in
line with the waste hierarchy and the polluter pays principle. High priority
should be given to activities promoting water quality, efficient water reuse
and water recovery through both the use of innovative solutions and the completion
of basic infrastructure. In particular, investments improving the energy
efficiency of the desalination process shall be supported.

o   Long
term strategies are essential for soil conservation and to increase soil
organic matter which will render the land more able to cope with future
climatic changes.

o   The
sustainable use of marine resources, including prevention of overfishing is
important for the further development of the country's blue economy.

o   Support
should be given to measures against the pollution of the marine environment,
selective fishing gear and innovations reducing the impact of fisheries on the
environment.

o   Sustainable
urban transport investments and the implementation of an intermodal shift from
land to sea shall help to reduce road congestion and curb high transport
emissions. Further investments will be needed to upgrade TEN-T road and port
infrastructure in line with the requirements for TEN-T core network.

3.  Increasing labour market participation through
improved employment, social inclusion and education policies

o   Investments
in the field of employment and social inclusion should focus on the integration
of the most vulnerable groups on the labour market: older persons, women, youth
and people at risk of social exclusion.

o   Malta
should allocate adequate funds to support active and healthy ageing measures
aimed at increasing employment rates of older workers and enhancing their
employability (e.g. life-long learning and entrepreneurship). To be effective
over time, these measures need to be accompanied by reforms in the health
sector to improve the health of the workforce and respond to the needs of an
ageing society, as well as promote innovative and elderly friendly forms of
work organisation to maintain older people longer in employment.

o   Special
attention should be placed on incentivizing older women to enter the labour
market. Increasing the participation of women on the labour market and
promoting equality between men and women and reconciliation between work and
private life should become an important priority.

o   Concentrate
on improving quality and access to affordable early childcare, out-of-school
care and pre-school education through investment in public infrastructure and
provision of qualified staff. This should aim to reducing the effects of
parenthood on female employment. Investments should focus also on adapting the
labour market to the needs of women.

o   Prioritising
the integration of young people not in employment, education or training into
the labour market. This in turn calls for investments in more individualised
active labour market measures and, increased access to quality apprenticeships
and traineeships, including non-formal learning approaches.

o   Entrepreneurship
and self-employment should also be specifically targeted, as these could offer
a solution to the problems mentioned above. Funds should be dedicated to
increasing the access to the possibilities of self-employment as an alternative
to unemployment or inactivity, especially in the case of youths, women and
older people, while providing the necessary training and institutional setting
to better prepare individuals to set up their own business.

o   Due
priority should be given to the disabled and other persons facing particular
risks, including single parent families, children, and older people in the
context of reinforcing measures to help people at risk to return to employment
or to receive further training.

4.  Improving the level of education

o   Improving
the quality of education and addressing skill mismatches, reducing the number
of early school leavers, and enhancing access to lifelong learning. Malta still
has one of the lowest levels of tertiary educational attainment in the EU.

o   Provision
of flexible learning opportunities, while at the same time increasing the
variety of courses on offer. Malta should invest in more innovative higher
education, namely through more interactive learning environment, and fostering
strategic cooperation between higher education institutions and enterprise.

o   Reduction
of early school leavers: Development of a system to identify and address the
main reasons leading to the high incidence of early school leaving, and the
implementation of comprehensive strategies to reduce this phenomenon.

o   Investments
should focus on better adapting workers, enterprises and entrepreneurs to the
restructuring of the economy, including by further modernizing the vocational
and education training (VET) system. Particular attention should be given to
buoyant sectors of the economy such as green, white, ICT and personal services
sectors.

GRTU will be consulting
members on this very important topic to ensure the priorities of all our
sectors are included. Further details will be made available shortly.

Yesterday the GRTU Executive
Council was very pleased to officially meet Mr Mario Cutajar as the new
Principle Permanent Secretary since the change in Government. GRTU President
Paula Abela welcomed Mr Cutajar and took the opportunity to congratulate him in
person on behalf of the Council on his appointment.

GRTU is pleased the Prime
Minister chose a person with a long experience in representing a large group of
people. From experience we know that those that have never been in the position
of representing find it hard to understand the positions we take and the work
we do and how important listening and understanding civil society is.

Mr Cutajar thanked the
Council for its warm welcome and their thoughts and he reminded us that he has
also worked under the other administration and through the experience he has he
is introducing changes which he feels will improve the environment we live and
work in. He stated he believed in listening and that the grass roots are very
important. Reforms in the public sector have also started, Mr Cutajar said that
every public servant has to understand that they have a client to service and
that their systems are there to assist them in carrying out their work and not
vice-versa. The Management and Efficiency Unit, which existed under the
previous administration falls now directly under his responsibility but now
they are given the importance they deserve and being assigned to the different
Ministries. Mario Cutajar also said that he is a great believer of MCESD and he
was always very active in MCESD.

GRTU's Director General
Vincent Farrugia mentioned that the topics for MCESD have to be chosen
carefully, there are other important committees where certain discussions would
be more appropriate. GRTU is particularly looking forward of starting Budget
discussions at MCESD.

GRTU complained with Mr
Cutajar how the MGSS (a scheme providing grants for individuals carrying out
masters) is being badly administered in a way that the individuals that have
applied for the grants will only be informed when the course starts. Mr Cutajar
stated Government is aware of the problem as is seeking to address it.

GRTU informed Mr Cutajar
that the 5.5M EU funded ERDF Solar Energy Scheme administered by Malta
Enterprise was very important for our members suppliers in order to be approved
as installers. So much so that 39 companies applied however disappointingly
only 6 were accepted. GRTU complained of the lack of assistance in applying and
they should not be disqualified for frivolous reasons. Mr Cutajar confirmed he
will look into it.

GRTU also brought up the
issue of lotto receivers where they are having problems because of an agreement
which was signed between Government and the private operator, an agreement
which specifically mentions them, but they have no access to it, not even to
the specific clauses that mention them. This we feel is unjust. Mr Cutajar said
he will ask the Permanent Secretary to look into it.

GRTU also brought up the
important topic of Crafts which is not given enough importance in Malta. We
need a law covering Crafts in Malta. The Ta` Qali Crafts Village is once again
dragging and we do not know what are the Government's intentions.

GRTU supplied Mr Cutajar
with a document containing the most important pressing issues GRTu is currently
dealing with.

Enterprises are being invited to complete an independent
evaluation of the European Commission's tariff suspension scheme which allows
for the full or partial waiver of duty paid on goods imported to the EU, and
can result in significant cost savings for EU businesses. More information can
be found at:

http://ec.europa.eu/taxation_customs/customs/customs_duties/tariff_aspects/suspensions/

The survey has been launched to test the
awareness of the scheme amongst EU businesses. The results will be used to review
and, improve the scheme, including the way it is communicated.

The survey is available until
12th July at:

www.surveymonkey.com/s/EU_suspensions_awareness

Euro area annual inflation was 1.6%
in June 2013, up from 1.4% in May. A year earlier the rate was 2.4%. Monthly
inflation was 0.1% in June 2013. European Union annual inflation was 1.7% in
June 2013, up from 1.6% in May. A year earlier the rate was 2.5%. Monthly
inflation was 0.1% in June 2013.

These figures come from
Eurostat, the statistical office of the European Union.

In June 2013, the lowest annual rates were observed in
Greece (-0.3%), Latvia and Poland (both 0.2%), and the highest in Romania
(4.5%), Estonia (4.1%) and the Netherlands (3.2%). Compared with May 2013,
annual inflation rose in eighteen Member States, remained stable in two and
fell in six. The lowest 12-month average rates up to June 2013 were registered
in Greece (0.2%), Sweden (0.7%) and Latvia (0.9%), and the highest in Romania
(4.5%), Hungary (4.0%) and Estonia (3.9%). Malta's inflation rate has decreased
from 4.4% in June 2012 to 0.6% in June 2013.

The largest upward impacts to euro area annual inflation
came from vegetables (+0.11 percentage points), fruit and electricity (+0.09
each), while telecommunications (-0.20), fuels for transport (-0.11) and
medical & paramedical services (-0.08) had the biggest downward impacts.

The EU Council is currently discussing the potential of
EU-China negotiations for an Agreement that would include investment protection
and market access in invest­ment and certain sectors of temporary movement of
persons (intra-corporate transferees and business visitors). Any comments on doing trade with China should be
sent on .

Business opportunities from resource efficient
production is the focus of the visit to China by European Commission
Vice-President Antonio Tajani, Commissioner for Industry and Entrepreneurship,
and Janez Potočnik, Commissioner for Environment. Green growth is now high on
the political agenda for the EU and China – both are interested in achieving
sustainable growth while maintaining and improving the state of their
respective environments.

A Commission proposal to restrict the use of Fipronil,
an insecticide which has recently been identified as posing an acute risk to
Europe's honey bee population, was backed by Member State experts meeting in
the Standing Committee on the Food Chain and Animal Health.

The European Commission is taking action to improve
Union-wide prosecution of criminals who defraud EU taxpayers by establishing a
European Public Prosecutor's Office. Its exclusive task will be to investigate
and prosecute and, where relevant, bring to judgement – in the Member States'
courts – crimes affecting the EU budget.