Sunday 21 October 2001

FLEXIBILITY differentiation and leverage

The Malta Independent on Sunday Flexxibility, Differentiation and Leverage

What have these got to do with Malta` future relations with the EU` Quite a lot , really!

If like me you are fed up` hearing stale, rhetoric and totally unconvincing arguments why Malta should decide one way and not another, we need more searching analysis to build a solid base for a more judicious choice.

And it is imperative to start from stating the` objective clearly. For someone whose objective is joining the EU as a matter of principle then there is not much to argue about. Unfortunately this is the case with many in the pro EU lobbies . They start from the foregone conclusion that Malta should join the EU as a full member and then work back to exaggerate the positives and down-size the negatives.

Foremost amongst these is the Malta `EU Information Centre that obstinately refuses to give information about the other options which Malta may follow in its quest for beneficial bilateral relations with the EU. It also avoids giving realistic information about likely future developments of EU institutions and decision making processes and provides factual information as if the future would be a straight linear extension of the present, which of course is rarely the case.

A more serious objective would be the achievement of long term sustainable peace and prosperity for this country and its people.` This objective is clear, simple and incontestable. So what we should be arguing is whether long term sustainable peace and prosperity is best achieved through EU membership or through the special relationship advocated by Labour under the motto of Switzerland in the Med.

To be able to choose the better of the two options they need to be tested against a set of relevant criteria which may be considered as indispensable tests for achieving the final objective.

Flexibility, Differentiation and Leverage are the three criteria which I consider the most suitable. Flexibility because as a small island nation one on the advantages we have for competing successfully` in a` globalised world is that we ought to be much more flexible than bigger countries. Flexibility is one of the few advantages of our small size and giving it up could likely mean that we are left with the disadvantages of smallness without the corresponding benefits.

Differentiation means that we have to present ourselves differently from` other competing suppliers on world markets. Take tourism. We should not promote our tourist product on the basis of our beaches. We just would not start competing with` countries much better endowed.



Differentiation means focussing on our strengths and presenting ourselves to that market segment which appreciates our strengths. In terms of tourism we would sell Malta as a place for 2nd or 3rd holiday for a few days because what a European tourist can see in Malta in 3 or 4 days cannot be seen anywhere else. So near, so European and yet so different ought to be our message.

Leveraging means obtaining maximum benefits for the natural advantages which mother` nature has endowed us with. Not many of them really. But the few we have are quite valuable.` Especially our strategic location, our chequered history, our deep harbours, our industrious work-force and our easy command of foreign cultures and languages. In dealings with foreign countries or Unions these assets have all to be leveraged in the negotiating package to ensure that we get best value from the deal. I have learned from experience that nothing is given away free. Whatever one needs first has to be demanded and then one has to explain to the giver why it is in his interest to comply with one`s request. Then with patience, skill and luck one hopes to achieve the minimum objectives through responsible, tough and unrelenting negotiations.` Without leverages negotiations get one sided and unproductive.

Seen this way there is no doubt in my mind that on the basis of current EU rules and structures ( so one must keep a reserve to reconsider when and if the EU evolves into a more flexible organisation) flexibility, differentiation and leverage are` much more possible under the Labour`s special relationship model rather than through EU membership.

Also because the special relationship keeps the door open for future revision and if circumstances change to make it advisable, then also to proceed to full EU membership. This is the essence of flexibility. On the contrary` EU membership does not leave any opening for any possible revision as this becomes a once in a lifetime irreversible decision..

When seen from this rationale the argument becomes more logical and convincing. Convincing enough to leave little room for sensible counter-` argument except from those who irresponsibly consider` that we are not capable of leveraging our flexibility and differentiation and thus should just get on a one way road to` EU membership as an objective in itself to save us from ourselves!

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