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MT 22 January 2017

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maltatoday, SUNDAY, 22 JANUARY 2017 10 Europe How did Panama Papers impact upon Malta's defence of its taxation system? Can Malta withstand the European Commission's plans for a common corporate tax base? TCC: MEPs are linking Konrad Mizzi and the Panama Papers with Malta's financial services, a sector that employs thousands of people. Jeopardizing its future just to keep Mizzi as a minister doesn't make sense. Malta's financial services sector isn't a race to the bottom but has improved its standards over the years. Obviously, Malta cannot have the same taxation system as Germany, as the economic realities are completely different in both countries. Sacking Konrad Mizzi will improve Malta's negotiat- ing position when combatting the EC's plans for tax harmonization because it will be able to state with a straight face that it is against tax evasion. RM: Malta will be in a better negotiating position to fight pressure for tax harmonization if Muscat sacks Mizzi, but I doubt he will because he has already ignored the call of thousands of street protestors. Panama is going to remain a taint on Malta for a long time to come… MD: Panama wasn't nice although the PN MEPs are inflating the issue because it helps them back home. Ultimately though the Prime Minister took a decision on Konrad Mizzi, as was his prerogative. All in all, I want Malta to start taking transparency and accountability far more seriously, and I'm referring to politicians from both parties – including Tonio Fenech and Beppe Fenech Adami. Without trying to minimize the Panama issue, there are far more pressing issues right now – such as Brexit and Trump's recent comments about the EU crumbling. AS: Panama Papers and LuxLeaks revealed systematic agreements for tax evasion and tax avoidance on an industrial scale. Some politicians are now seeing it an excuse to bring in tax harmonization, such as the European Greens' recent report that claimed that Malta is a tax haven. I get the PN's reaction: if I was part of the Opposition I'd probably be doing the same thing as them. I have made my position clear on the issue [that Konrad Mizzi should resign] and it hasn't changed. How- ever, it's all small island talk really; Mizzi has got absolutely nothing to do with the way the Panama Papers is being discussed internally. When people like Jean-Claude Juncker are implicated in LuxLeaks, then Mizzi becomes relative small fry. The real problem is that Germany doesn't like Malta's tax system, because it claims that it siphons tax revenue from their coffers. How realistic is Joseph Muscat's plan for the EU and the Libyan navy to conduct joint patrols in the Mediterranean to repatriate asylum seekers intercepted outside Libyan territorial waters? TCC: The migration situation is urgent, and if Muscat manages to reach a solution during Malta's presidency, it will be greatly welcome. There are obviously doubts on how much the EU can reach a deal with Libya right now, and a degree of stability in the country must first be reached, yet it is positive that such a deal is at least being spoken about. RM: The fact that Libya is so unstable increases the pressure on Malta, and it must work closely with Federica Mogherini to bring all Libyan factions to the table to trash out a solution. The migration challenge is growing, and it would be a mistake for the government to think that deporting Malian children will solve anything. The government and the EU should work hard for a compromise to be reached in Libya; we can never stop trying to find consensus between Libyan factions. MD: The deal certainly won't be easy to implement because of the instability in Libya, but Muscat's rationale was that he wanted member states to reach a solution from now before the migration influx from Libya starts in spring. The Prime Minister's proposal is not a silver bullet, but we must certainly consider it and see if it will work as a first step. AS: I fully agree with it. The EU must start from somewhere, but this plan shouldn't only be seen in the context of Libya. This will hopefully be just one aspect of a holistic Mediterranean policy that will include migrant deals similar to the EU-Turkey deal with Egypt, Algeria and Tunisia. We also need to start tackling the African dimension to the problem, revitalize their economies and set up an EU-run coastguard. Do you agree with providing legal channels for refugees to claim asylum? TCC: From a humanitarian point of view, migrants shouldn't be pushed back to Libya from the sea. Instead, legal channels should be set up in third countries, that will screen migrants and ensure that only allow people who qualify for asylum get to enter the EU. The European Parliament in general agrees with that viewpoint. RM: It is crucial that legal migration channels be set up to stop people drowning in the Mediterranean. Migrants should be screened and identified in their home countries, similar to the system that exists in the USA, and while vulnerable ones should be allowed access to Europe, ineligible ones should be denied entry. We can't just keep looking at Africa as a brain drain to Europe, but have to start investing in their economies. MD: If we truly want to stop people dying in the Mediterranean and in the boots of trucks as they cross into Europe, then we must ensure that only legitimate asylum seekers enter Europe. We must prioritise the people whose lives are endangers and dif- ferentiate them from economic migrants. We must also start discussing migration from a human resources perspective. Europe has a low birth rate and an ageing population and some jobs cannot find enough workers – the solution could defi- nitely be linked to migration. Ask the MEP: is Europe ready to Nationalist MEPs Therese Comodini Cachia and Roberta Metsola Panama is a stain on Malta's reputation on financial services and insist only the sacking of Konrad Mizzi would restore the country's standing Panama Papers, migration, Russia and Turkey, and citizenship... Joseph Muscat's address to the European Parliament this week gave TIM DIACONO the opportunity to pick the brains of four Maltese MEPs on some pressing global issues

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