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04.04.19 16 EU FUNDS PAUL COCKS FOR businesses and entrepreneurs ben- efitting from EU support, the next fund- ing framework will offer less red tape, with simpler ways to claim payments using simplified cost options, Business- Today has learnt. To facilitate synergies, a single rulebook now covers seven EU funds implement- ed in partnership with Member States. e European Commission has also proposed lighter controls for pro- grammes with good track record, with an increased reliance on national sys- tems and the extension of the "single audit" principle, to avoid duplication of checks. Looking into future funding opportu- nities, and in line with the consultation process on the National Reform Pro- gramme which is underway, Govern- ment intends to ensure that the next round of funding will continue to ad- dress the developmental priorities of the country -- including SME assistance – EU funds parliamentary secretary Aaron Farrugia told this paper. Specifically, one of the Government's investment strategy focus areas will fo- cus on supporting SMEs in line with the Smarter Europe strategy – that is through innovation-led models, digiti- sation, economic transformation and in- ternationalisation. ere has been significant EU invest- ment in business in the previous period. Last month, a press conference was held on the Ta' Qali Crafts Village project, which is nearing its completion date set for next year, and for which around €13 million in EU funds was invested. "It is a privilege to put the EU funding teams at the disposal of entities such as the Malta Industrial Parks to see such important project finally come into fru- ition," Farrugia said. "is project is a tangible and visible one, in that it represents a direct invest- ment in our infrastructure. And Malta has experienced and will continue to benefit from similar projects, as the is- land is provided with a much-needed infrastructural uplift." Specifically, key infrastructure projects that have been completed last year or are being currently implemented include the Kappara Junction, the Marsa Junction Super Structures, the Marsa-Ħamrun Bypass, significant investments in water, the regeneration of Lower Valletta, the recently opened National-Community Art Museum (MUZA) and the extension of the Xewkija Industrial Park in Gozo. "However, we need to look beyond the 'tangible' and visible aspect of such projects, and consider the more indirect benefits they bring about. is is where the crafts village really shines – though the first thing that hits you when you visit the Ta' Qali site is its contemporary design and visual upgrade, its key bene- fits will actually be found inside the new workshops once they become operation- al. In fact, the benefits of such a project are mainly addressed at the SME oper- ators that will be positively impacted by the new environment in that they are now equipped with better tools to con- tribute more to the local economy," the junior minister explained. Additionally, apart from the busi- ness-related infrastructural projects, current funding and absorption rates indicate that Malta has already benefited strongly from EU funding directly tar- geting business and SME development. ese include grants administered by the local managing authorities and en- tities such as Malta Enterprise (which also offers other SME consultancy ser- vices), covering areas such as setting-up expenses for start-ups, research and de- velopment, innovation and digitalisation support such as e-commerce, and ex- pansion (growth, diversification, inter- nationalisation). Apart from grants, they also cov- er other financial instruments such as loan-guarantee products provided by commercial banks, which have an EU backing in terms of first loss guarantees. Government has also set up the Malta National Development Bank, which in- cludes SME assistance as one of its pos- sible remits, and looked into effective succession planning through the Family Business Act and incentives. Taking further pointers from current funding, there are a number of local suc- cess stories which indicate that the local entrepreneurial spirit is very resilient and eager to innovate – as a result, lo- cal businesses look up to EU funds as a way of investing further in their compet- itiveness. Innovation for our local SMES ranges from new knowledge to new mar- keting practices, as well as management approaches. "In Malta, we are aware of our inher- ent challenges, and the need to adapt our business models to the challenges of the global economy and be better equipped to develop new products and services. Government has listened to this SME need and created the supply of funds, and local firms has responded with an impressive take-up and effective utilisa- tion. And this momentum needs to be maintained," Farrugia said. "Government policy - and hence EU funding as a policy instrument - will con- tinue to keep SMEs as a key target audi- ence. Government policy needs to con- tinue to create an environment in which entrepreneurs and family businesses can thrive and entrepreneurship is rewarded, and listen to SMEs before introducing new laws, examining the effect legisla- tion will have on small businesses," he continued. Farrugia explained that the Govern- ment will continue to help companies in need of support, make public admin- istrations responsive to SMEs' needs, adapt public policy tools to SME needs, and facilitating SMEs' access to finance. "Our aim is also to help SMEs to ben- efit more from external opportunities, such as the EU market and other emerg- ing markets, and to promote the up- grading of skills in SMEs and all forms of innovation. is is a promise we feel we are delivering on, and will continue to do so." Further support for Maltese businesses in next EU budget Aaron Farrugia said that 13 million Euros in EU funds have already been invested in the Ta' Qali Crafts Village

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