Issue link: https://maltatoday.uberflip.com/i/1512576
AS Malta continues to engage with European Union legisla- tion, it's essential to recognise that the concept of 'one size fits all' does not always align with the diverse needs and circumstances of all EU Member States, espe- cially those on the periphery. Our island nation does face distinct challenges that de- mand tailored solutions, espe- cially when it comes to laws that have the potential to sig- nificantly impact our economy and our people. At this point, it's crucial to emphasise Malta's support and commitment towards envi- ronmental initiatives and the imperative need to address cli- mate change. We need to ac- knowledge the importance of reducing emissions and tran- sitioning to a more sustainable economic model. The recent local discussions surrounding EU regulations such as the Mobility Package and the Emissions Tax, are not about opposing environmental progress but about ensuring that the green transition does not become an unjust financial burden on our people and our industry. Sustainability and af- fordability need to co-exist, and European policies need to take into account the peculiarities of individual Member States. Take for example, the EU's Mobility Package. While this directive may seem equitable on the surface, it fails to con- sider Malta's position as an is- land economy when it comes to trans-shipment. Logisti- cal costs are a pivotal factor in our competitiveness as we import all our raw material and the vast majority of our consumables. Imposing such a rule without acknowledging our specific needs can put our businesses and consumers at a significant risk. Similarly, the EU's Emissions Trading Scheme's current im- plementation flaws may inad- vertently clash with Europe's core principles of achieving carbon neutrality. The po- tential cost disparity between EU and non-EU ports could amount to €34 million per year for each served route. Major carriers have confirmed this scenario, highlighting the com- petitive pressure that could lead some to bear the extra cost, while others opt to by- pass the directive altogether. This significant variance poses challenges and may push major shipping lines to explore alter- native solutions other than Eu- ropean ports such as Malta. It is within the EU's inter- est to ensure that the internal market is strengthened and EU companies and citizens living in border countries like Malta, are protected as much as those in the mainland. European ports should not suffer from a self-inflicted competitive dis- advantage over African ports. This is why derogations should be in place for European island states such as ours. Rather than one size fits all policies, small member states should be allowed flexibility to achieve the ultimate EU-wide objectives without putting at risk the competitive fabric of the economy. Unfortunately, many in Brussels wrongly as- sume that this reasoning is a call to resist change. Instead this is a plea to ensure that the transition to a greener future is achieved in a manner that safe- guards our economy and the well-being of our citizens. The same applies for the European Commission's ap- proach in calling for Malta to curtail the energy subsidy. This decision would totally derail Malta's economic outlook and feed an increase in energy pov- erty which would in turn dilute the living standards of the most vulnerable in our society. This without mentioning the direct negative impact on the com- petitiveness of our industry against European peers which have the huge benefit of being connected to the mainland and a much wider access to raw materials. In order to achieve our aim Malta must strengthen its lob- bying efforts at the EU level. We must have a stronger and common voice involving a wide array of industry stakeholders that actively engage with EU institutions and decision-mak- ers to ensure that laws and reg- ulations are crafted with a full understanding of Malta's chal- lenges and needs. Malta, as an EU Member State for two decades, possesses the experience and expertise to ad- vocate for policies that consid- er our unique circumstances. We have a shared responsibil- ity to protect our environment and contribute to global sus- tainability. However, we must do so in a way that respects the diversity of EU member states and ensures that the green transition benefits all, without placing undue financial bur- dens on any nation. Doing this would allow us to stop viewing the challeng- es posed by EU regulations as insurmountable obstacles, but rather look at them as oppor- tunities to shape a brighter future for our island nation. By strengthening our lobbying efforts and actively engaging with EU institutions, we can not only protect our interests but also lead the way in demon- strating how sustainability and economic vitality can coexist harmoniously. The path to a sustainable and equitable future may have its hurdles, but it is one that Malta is more than capable of nav- igating. It's a journey of inno- vation, adaptation, and collab- oration—one that will not only safeguard our environment but also enhance our competitive- ness and the well-being of our citizens. The misfit of one-size-fits-all policies 4 maltatoday | SUNDAY • 3 DECEMBER 2023 OPINION OPINION Steve Ellul is a financial advisor Steve Ellul