Issue link: https://maltatoday.uberflip.com/i/1496582
2 NEWS 6.4.2023 THE 'sorpasso' of the Malta's Gross Do- mestic Product per capita over that of several G20 Member States was high- lighted during a seminar organised by Malta Enterprise with the theme 'Eu- rope's Single Market at Risk'. A strong line up of international and local speakers emphasized that with the current geopolitical tensions, the in- creased pressure being placed on com- petitiveness and profit margins, Malta needed to further invest in its manufac- turing and services sectors. e US In- flation Reduction Act has accelerated the requirement to revise the EU's Industri- al Policy and fast-track investment in Clean Tech. is is being supported by the updating of the EU State Aid frame- work particularly concerning the Gener- al Block Exemption and the rollout of the Net-Zero Industry Act and the Critical Raw Materials Act. e debate saw the participation of Dan O'Brien, Chief Economist of the Institute of International & European Affairs in Dublin, Bernardus Smulders, Deputy Director General State Aid, Di- rector General Competition at the Euro- pean Commission; Martin Sandbu, Eu- ropean Economics Commentator at the Financial Times, Neville Gatt, Partner at PriceWaterCoopers Malta, Alison Mizzi, President of the Malta Business Bureau and Kurt Farrugia, CEO of Malta Enter- prise. The state of EU's aid Cornerstone policies of the European Union since its creation, such as state aid and competition rules, are currently fac- ing unprecedented scrutiny and calls for change. Support for subsidising compa- nies in strategic sectors is rising, includ- ing in some EU member states that tra- ditionally opposed to such aid. Although well intentioned, there is an ever-grow- ing debate whether such shifts could threaten the functioning of the EU's sin- gle market, a threat that is particularly concerning for small open economies. Guest speaker Dan O'Brien said that Europe often lacks confidence in how well it has performed economically. One reason it remains fundamentally strong is because competition in the EU single market is more intense now than in oth- er big economies, to reduce competition by increasing subsidies to existing busi- nesses, and creating 'national champi- ons' would put this achievement at risk. Small economies, like Malta and Ireland could be the biggest losers. The Single Market – America – China He spoke about Europe's resilience, how economies and businesses have come through multiple shocks – cov- id, energy and war better than expect- ed. Despite a weak sentiment, Europe's economy remains strong. Speaking about the manufacturing industry in Europe, the European manufacturing output does not point to 'deindustrialisa- tion'. To date 32.3 million EU citizens still work in manufacturing. Malta has been a success story of resilience, increasing the number of people at work more than 10% in just 3 years. Europe should not panic about Ameri- ca but should worry about China. ere is definitely a case for Europe to push ahead in some sectors in the area of solar panels which would be the main energy source in the future. e single market is a huge achievement, it has brought huge benefits, its not broken so let's not rush to fix it. State Aid Regulations - One size (does not) fit all Bernardus Smulders stated that state aid rules were never intended to be used as a competitive tool. He mentioned that if anything state-aid rules might be seen as being too flexible rather than rig- id. is point gave rise to an interesting debate. Smulders added that the tools used for SMEs relate to block exemp- tions which enable member states to ap- prove aid directly. De Minimis aid was also flagged giving an indication that the threshold will be revised. Neville Gatt stated that the single mar- ket has a common set of rules. e main thought provoking observation was as to whether a one-size-fits-all is the right strategy. A common approach might not benefit everyone equally. He added that EU law needs to be flexible, and it needs to take into account the specificities of individual MSs as it is not a Federal Gov- ernment. e needs of individual Mem- ber States are equally important. e rules needed are those which make every Member State as competitive as possible to ensure EU's competitiveness whilst safeguarding the single market. e EU State Aid framework was one of the debated topics during the Maltese Enterprise event. Kurt Farrugia called for more flexible state aid rules that cater for each Mem- ber States realities whilst safeguarding the integrity of the Single Market. e 'one size fits all' is a cliché and it does not tackle the business realities that small islands States and regions such as Malta are faced with, particularly in the area of recent hike in transpor- tation costs and irregular connectivity. Strengthening EU competitive edge and to guarantee a level playing field of the bloc should be always a priority to keep up with global competitors. We need to ensure that certain challenges being faced due to our realities as an island are continuously addressed. Not doing so also hampers the functioning of the single market. ME's 'Europe's Single Market at Risk' event dissects EU's competitiveness status Kurt Farrugia, CEO of Malta Enterprise THE Convenience Shop Group is announcing the appointment of Andrew Attard as Executive Assis- tant to the Executive Directors and Jonathan Smith as the new Chief Operating Officer. As the former Chief Operating Officer, Andrew Attard will now be responsible for handling new responsibilities on behalf of the Group, including public commu- nications and Corporate Social Re- sponsibility (CSR) initiatives. With his extensive knowledge of the Group's operations and excellent communication skills, Andrew will be a valuable asset to the Executive Directors in these new roles. On the same lines, e Conven- ience Shop Group is welcoming Jonathan Smith as the new Chief Operating Officer. With 37 years of experience in various indus- tries, both local and international, having overseen major projects, franchisee openings, and business developments, Jonathan will be leveraging his expertise to achieve future business growth and sup- port the Group's expansion plans. Martin Agius, CEO of e Con- venience Shop Group, expressed his enthusiasm about the new appointments. "I am delighted to welcome Jonathan Smith to our team as our new Chief Operating Officer. I am confident that his ex- tensive experience and knowledge will enable him to play a signifi- cant role in leading our company forward. I am also excited to have Andrew Attard take on new re- sponsibilities within the Executive Directors' team. His exceptional communication skills and dedica- tion to our company's vision make him a natural fit for this role." e Convenience Shop Group continues to strive towards excel- lence in providing convenience to its customers through prox- imity, availability, and dedicated team members across the out- let network. With these new ap- pointments, the company aims to further strengthen its growing po- sition in the food retail chain sec- tor by leveraging the quality, ex- perience, and vision of its human resources talent. The Convenience Shop Group announces new senior managerial appointments