Pathetic Friday 13th

16^th December 2002

maltastar.com

Last Friday was bound to be pathetic. Whilst down here we were celebrating our pride at being an independent republic, up there in Copenhagen our Prime Minister and his EU negotiating team, were humiliating us licking the boots of former colonisers.

 

 

But it was pathetic in many ways. Labour held its fund raising campaign to finance the up-coming electoral campaigns. Coming so soon after the September 21st collection for Labour’s media I just could not help feeling that especially at times like the present when the workers’ families are having to stretch their budget to the extreme, it is unfair that we demand so much from them.  A country that has no problem providing private jet facilities to its Prime Minister has not yet found the inner strength to control political parties' finances and in the name of democracy gives them sufficient public funds to perform their democratic functions. Political parties should then be prohibited from making public collections except for unsolicited donations under strict control systems and full donor disclosure.

 

“Whilst down here we were celebrating our pride at being an independent republic, up there in Copenhagen our Prime Minister and his EU negotiating team, were humiliating us licking the boots of former colonisers”

It turned from pathetic to grim in the afternoon when we were all left speechless by the news of the sudden demise of GWU stalwart Tony Coleiro. Tony was a person who gave his body and soul for the causes he believed in. Even if I had sometimes harboured difficulty in sharing his extreme viewpoints which I considered short-sighted, I never failed to admire his total and disinterested dedication to the cause of the workers, many of whom regarded him as their second father.  Tony, you left to early and too quickly. This country needs many people like you who dedicate their lives to the causes they believe in. To his family go my deepest sympathies.

 

 

In the evening it turned to tragic. Our Prime Minister was jubilant in declaring a three year package whereby Malta would be net beneficiary by Lm26 million p.a. This jubilation could only be explained if pitched against the initial likelihood that we finish net contributors to the extent of Lm7 million and then to become roughly break-even. It is a total let down compared to the Lm80 or Lm100 million p.a. promised to us before the last elections.

I must be fair. EU leaders have wrapped up one of the cheapest enlargement in history. Their greed to protect their wealth whilst opening up the markets of eastern Europe and forcing their political integration, taking full and undue advantage of these countries' distaste of the prospect of the resurgence of Russia as an economic and political power, shows that Europe has good politicians but pitiful world leaders. But for the PN to be jubilant with such a humiliation, then this country is indeed served so badly by its leaders.

I prepared hereunder Table comparing this deal with the 1972 Military base rental agreement.

 

 

		Labour Government		Nationalist Government
		1972 AGREEMENT		2002 AGREEMENT
	Subject	Rental of certain specified facilities for the specific use of military base under certain conditions		Membership of a Union which will inevitably lead to absorption and economic dependence forcing us to put our defence values at the service of the Union
	Compensation	Lm14 million p.a. in 1972 money equivalent to Lm45 million in current value (using the RPI) for a period of 7 years (expiry at our insistence)		Lm 26 million p.a. in current money terms for 3 years ( expiry at their request) but obligations continuing indefinitely.
	Other benefits	An estimated further annual spend of another Lm14 million in 1972 money equivalent to Lm45 million in current value.		Very marginal and difficult to quantify – like having access to markets with which EU has free trade agreements.   Unless of course one feels that we need the stick of big daddy to bring the dose of discipline that we cannot find the strength to self-impose
	Other costs	Nil		Compliance costs estimated at nothing less than Lm10 million p.a.   Direct new subsidies expected to cost at least Lm7 million p.a.   Higher cost of basic foodstuffs which will have to be bought at higher internal market prices estimated at least Lm15 million p.a.   Plus one off expenses re investment in compliance requirements  which could amount to more than Lm100 million once only (Energy strategic storage, environmental cleanup and investment to adhere etc.)
	Conditionality	None – funds were available in free cash flow		It is unknown how the funds will be allocated.   But international reports indicate that most of the funds are earmarked for structural projects.   The bureaucracy leading to drawdown and our inexperience with promoting such projects opens up the clear likelihood of our missing out on these funds.

 

I desperately awaited for MIC to inform us what has exactly been agreed.  We have a right to know.  How much has been really given to us for what purpose and under what conditionality. MIC for all the lavish budgets they enjoy stayed mum. Clearly they had no information to share. Which is hardly surprising as the Prime Minister himself admitted that he still does not know the details of what he has agreed.

I read the Financial Times to see how they account for Malta’s ‘heroic’ act of holding out for more. They did not even mention us. They mention Poland and the Czech Republic as the toughest bargainers holding out for more but in the end there was not much more and they had to take what there was on offer though Poland seems to have managed to shift substantial amounts of funds from project conditioned funding to free cash flow. Malta was not even mentioned.

Can somebody please illuminate us what actually happened in Copenhagen and what has actually been agreed. Shame on those who sold our priceless sovereignty for a price they are still not even able to explain. Pathetic Friday the 13th.