Malta could lose nearly €200 million in cohesion funds next EU budget

Malta could lose out on some €179 million in EU Cohesion Funds, according to EU Commission plans.

According to the plans, Malta could receive around €673 million in said funds for the 2021-2027 period, though that figure could even be lower, around €597 million if funding is locked at 2018 prices. For the 2013-2020 period, Malta had negotiated nearly €800 million in said funds.

The Commission noted that the Cohesion Policy keeps 3 categories of regions: less-developed, transition and more developed regions. "To reduce disparities and help low-income and low-growth regions catch up, GDP per capita remains the predominant criterion for allocating funds. In addition, new criteria aim at better reflecting the reality on the ground - youth unemployment, low education level, climate change and the reception and integration of migrants." Malta's recent economic growth spurt could be why there would be a reduction in funds.

The EU Commission said: "the EU's economy is bouncing back, but additional investment efforts are needed to tackle persistent gaps between and within Member States. With a budget of €373 billion in commitments for 2021-2027, the future Cohesion Policy has the investment power to help bridge these gaps. Resources will continue to be geared towards regions that need to catch up with the rest of the EU the most. At the same time it will remain a strong, direct link between the EU and its regions and cities."

It is pertinent to note that nearly all countries are losing funds.

The government, in a statement, said that the Commission's proposal for the 2021-2027 Cohesion Policy issued on 29 May 2018. Economic, social and territorial cohesion is one of the biggest European Union policies in terms of budget.

Government said that today's proposal should be seen in the context of:

(a) the fact that the Commission, in its post-2020 Multiannual Financial Framework (MFF) Proposal of 2nd May, has proposed a reduction in the  share of Cohesion Policy within the next EU budget, mainly as a result of Brexit, and;

(b) the fact that the  rest of the sectoral policies (such as agriculture, Erasmus+, migration, and security) will be issued in the coming days.

"In this regard, Malta welcomes the Commission's proposal to widen the eligibility of the transition regions to those regions whose GDP per capita at purchasing power parity is between 75-100% of the EU average (as opposed to 75-90% in the current period). This means that Malta is expected to continue benefiting from transition status that will help to sustain and consolidate the current economic growth"

 

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