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3 NEWS 15.7.2021 IN May 2021, the seasonally adjusted volume of retail trade rose by 4.6% in both the euro area and the EU, com- pared with April 2021, according to estimates from Eurostat, the statistical office of the European Union. In April 2021, the retail trade volume decreased by 3.9% in the euro area and by 3.6% in the EU. In May 2021 compared with May 2020, the calendar adjusted volume of retail trade increased by 9.0% in the euro area and by 9.2% in the EU. Monthly comparison by retail sector and by Member State In the euro area in May 2021, com- pared with April 2021, the volume of retail trade increased by 8.8% for non- food products and by 8.1% for automo- tive fuels, while it decreased by 0.2% for food, drinks and tobacco. In the EU the volume of retail trade in- creased by 8.5% for non-food products and by 6.8% for automotive fuels, while it decreased by 0.3% for food, drinks and tobacco. Among Member States for which data are available, the highest monthly increases in total retail trade were reg- istered in France (+9.9%), the Nether- lands (+9.3%) and Estonia (+8.1%). Decreases were observed in Latvia ( 3.9%), Finland ( 3.3%) and Luxembourg ( 0.7%). Annual comparison by retail sector and by Member State In the euro area in May 2021, com- pared with May 2020, the volume of retail trade increased by 28.4% for au- tomotive fuels, by 14.8% for non-food products and by 0.1% for food, drinks and tobacco. In the EU, the volume of retail trade increased by 25.0% for automotive fu- els, by 15.0% for non-food products and by 0.3% for food, drinks and tobacco. Among Member States for which data are available, the highest annual increas- es in total retail trade were registered in Bulgaria (+23.9%), Ireland (+22.4%) and Malta (+22.0%). e only decrease was registered in Germany ( 0.9%). Retail trade volume up by 4.6% in euro area and EU FROM PAGE 1 However, it also sought to impose on regulators the obligation to ensure due process is followed in dishing out the fines and injured parties would have the right to appeal before the law courts. Zammit Lewis told parliament the constitutional amendment was needed to ensure that enforcement by regula- tors was effective and served as a deter- rent. He urged the Opposition to support the changes because rejecting them would send out a negative signal to the international community. "Let us not allow those who want to es- cape hefty fines because of wrongdoing, get their way by giving them the chance to challenge the sanctions by opening constitutional cases," he said. But Opposition MP Joseph Ellis said the changes proposed by the govern- ment undermined the principle of due process on fines that in some instances could reach millions of euros. Opposition MP Chris Said insisted that the changes will undermine the guarantees of a fair trial and due pro- cess enshrined in the Constitution, while erese Comodini Cachia said that authorities with government-ap- pointed members could not be trusted with dishing out fines of a criminal na- ture, which is why the courts had to be involved. Zammit Lewis rued what he described as "a lost opportunity" to give regulators the necessary bite to enforce sanctions that are effective, dissuasive and pro- portionate. "Do not come here complaining in the months ahead that authorities are not doing their job properly because it will be your fault for not supporting this change that would have ensured their effectiveness," the minister said. FIAU warning on need for legal comfort Ahead of the parliamentary sitting, Financial Intelligence Analysis Unit di- rector Kenneth Farrugia said the consti- tutional amendment will give regulators the legal comfort to carry out effective enforcement. He warned that without such legal protection it would be impossible to carry out effective enforcement as re- quested by the Financial Action Task Force that greylisted Malta. "If we don't have this protection at law, the FATF greylist deadline of Jan- uary 2023 will not be met before 2026 because one of the issues raised was the need to have compliance on the ground through effective, dissuasive and pro- portionate sanctions," Farrugia said. He said the FIAU had worked on im- proving its internal processes to ensure operators that it supervises are given due process when faced with regulatory action. e change would have given regula- tory authorities the necessary bite in the discharge of their duties after this func- tion was successfully challenged in two constitutional court cases in the past. One of the court cases had been insti- tuted by the Nationalist Party against the Electoral Commission when it initi- ated an investigation in line with the law governing the finances of political par- ties over allegations that party official wages were paid by a private company. e Opposition has argued that ad- ministrative fines or sanctions equiva- lent to those of a criminal nature should be imposed by a court and not regula- tory authorities to ensure due process. e court rulings have stifled authori- ties like the Financial Intelligence Anal- ysis Unit when issuing hefty fines for breaches by financial institutions and practitioners. A constitutional amendment to give regulators more bite did not garner a two-thirds majority in parliament Zammit Lewis rues 'missed opportunity'

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