ADDRESS BY THE HON. DR. LAWRENCE GONZI, PRIME MINISTER OF MALTA, DURING THE EXCHANGE OF NEW YEAR GREETINGS WITH THE DIPLOMATIC CORPS – AUBERGE DE CASTILLE, VALLETTA – FRIDAY, 11TH JANUARY 2008
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ADDRESS BY THE HON. DR. LAWRENCE GONZI, PRIME MINISTER OF MALTA, DURING THE EXCHANGE OF NEW YEAR GREETINGS WITH THE DIPLOMATIC CORPS – AUBERGE DE CASTILLE, VALLETTA – FRIDAY, 11TH JANUARY 2008
Excellencies,
Ladies and Gentlemen,
I welcome you all to this yearly opportunity to exchange seasonal greetings and to share with you some reflections on our ongoing work.
First of all, my warm greetings go to you and to all the members of your families. Through you I also wish to convey the greetings of my Government, and of the people of Malta, to the Governments and peoples you represent.
For the Maltese people this new year brings a series of new and special challenges, and, in particular, it brings two significant milestones on the road to Malta’s further integration into the European Union.
On the first of January Malta adopted the Euro. On 21 December, Malta lifted its sea borders to join the EU’s borderless area – Schengen. A more significant step will be made at the end of March when the second phase of the Schengen enlargement will kick in and air borders will also be lifted.
These achievements constitute important events in our country’s economic and social progress. They represent the successful culmination of years of solid preparation and effort. At the same time they open up the prospect of fresh and exciting opportunities ahead.
My Government has consistently seen Malta’s membership of the European Union as a unique turning point in our national journey. We are committed to the European aspirations and values in a deep and fundamental way because these are our own values. We are enthusiastic participants in the common European endeavour towards international peace, social justice and human dignity.
We recognise that the basic inspiration for our European vision lies in the daily lives of our peoples and our society. The two milestones we have just crossed underline this reality.
The introduction of the Euro has required years of careful work and sacrifice by all the elements of Maltese society. It required prudent fiscal management, and the careful husbanding of resources on the part of government. This depended upon the collaborative support of individual citizens and social partners.
Four years ago when we set the objective of meeting the Maastricht criteria the obstacles in our way appeared daunting. The achievement of this objective therefore represents an impressive collective national effort.
The Maltese people can justifiably look forward to reaping the benefits of their entry into the Eurozone. These include a more stable basis for our economy, lower transaction costs for the bulk of our trade, easier price comparisons for goods and services, and an enhanced competitive environment for our investment effort.
We remain conscious that these are potential opportunities, not guaranteed results. The Euro reinforces, but does not replace, the need for continuing prudent management of our economy.
In many ways entry into the Schengen area represents a physical manifestation of Malta’s sense of belonging to Europe. The Schengen common space greatly facilitates the freedom of movement of people which is an essential element of the European project.
Linked in their common space, European citizens must continue to pursue their intensifying relationship with the citizens of neighbouring countries. This is a vital consideration for Malta and for the European
Union as a whole.
We have a clear awareness of the Mediterranean dimension of our European identity. We have worked assiduously to ensure that our membership in the European Union further consolidates our bilateral and regional links with other Mediterranean countries.
Through Euromed and its wider neighbourhood programmes and policies the European Union has intensified and expanded the process of cooperation in the Mediterranean. Malta remains an active participant and supporter of this process.
We are encouraged by the fact that, however slowly and cautiously, the process continues to move forward. Progressively it is becoming more complex and mature encompassing increasingly difficult and sensitive areas of Mediterranean life. The discussions that have been held on such issues as terrorism and migration are cases in point.
Our region tragically often finds itself on the frontline of terrorist action. Fresh in our minds are the recent outrages in Algeria and in Lebanon. Our deepest condolences to the Governments and people of these countries are joined with the sense of purpose and solidarity in countering such terrorist acts. We are ever more convinced that collective action at regional level remains a necessary complement to other measures to fight this great plague of our times. Malta therefore supports the negotiations being undertaken under the auspices of the United Nations on the elaboration of a Comprehensive Convention on International Terrorism.
Excellencies,
Once again, over the last twelve months the issue of migration has remained among Malta’s top priorities and concerns. We are keenly following the many deliberations on the issue of migration and development that are taking place at international and regional levels. The discussions that took place in the context of the EU-Africa summit in Lisbon in December were of particular relevance for us.
These discussions all highlight the seriousness and urgency with which the subject needs to be tackled. They point to the many inter-related dimensions of the migration issue - the dimension of human rights and humanitarian solidarity, of personal and national security, of economic and social development.
Because of its particular circumstances Malta experiences most of the problems but none of the benefits which result from inward migration flows. In practically all cases we have to deal with the product of illegal migration. Large numbers of those who approach our shores do so in extreme circumstances that often constitute a threat to their lives. Our very limited geographical living space further intensifies the problem.
In these circumstances it is inevitable that our focus has to remain on two aspects of the migration issue - the need for humane but effective action to counter illegal migration; and the need for solidarity and burden sharing at both European and wider levels.
Over the last twelve months there have been some limited through encouraging developments on both these fronts. Last summer’s Frontex operations in the Mediterranean reduced flows, and saved more lives in addition to those saved by the Maritime Squadron of the Armed Forces of Malta. Malta is engaged in ensuring that this project gains substance and momentum in the future.
We continue to place reliance on agreement on substantive long-term measures of burden-sharing at the European level. We believe that the consideration of this aspect still has some way to go. At the same time we are appreciative of the gestures of solidarity, in the resettlement of refugees, that have already come our way both from some of our European partners, as well as from other countries, including the United States.
The action we are taking in response to our very real and immediate problems do not in any way stand in the way of our recognition and commitment to fulfill international and moral responsibilities to provide asylum or protected humanitarian status to those who genuinely need it. Due to their origin, approximately half of the irregular immigrants who have landed in Malta over the last few years have been entitled to refugee or protected humanitarian status. This is the highest rate of proportion in the European Union.
Over the past twelve months there has been further action based on international solidarity in several areas of global concern. The question of climate change is perhaps the most prominent example. As the United Nations Secretary General himself recognised in his opening address to last September’s High-Level Event on Climate Change, Malta was the initiator in 1988 to place for the first time the problem of climate change on the international political agenda and led to the United Nations General Assembly declaring that climate change is the Common Concern of Mankind as well as the adoption of the United Nations Framework Convention on Climate Change.
Our initiative on climate change, as our earlier one on the Law of the Sea, is the logical consequence of Malta’s close relationship with the sea. For us the sea is an intimate component both of our sense of space, as well as of our economic well being. As in the case of many small islands, climate change, if unchecked, could turn the sea into one of our greatest threats.
We join others in acting as a catalyst and promoter for action by the whole of the international community countries, large and small, developed and developing to mitigate the effect of climate change, in a cohesive and concerted manner.
The recently concluded meeting in Bali has provided the basis for a renewed effort in this direction. The most encouraging aspect lies in the extensive level of consensus that now exists on the scientific evidence regarding the reality, and the expected consequences, of climate change. The diplomatic and political consensus to take the necessary remedial action is still to be worked out. Hopefully Bali has now presented a template on which this consensus can eventually be forged. I welcome the appointment of our Malta’s Ambassador on Climate Change, Mr. Michael Zammit Cutajar, to be the Vice-Chair, and later Chair of negotiations toward a global, comprehensive agreement to address climate change. This further highlights Malta’s contribution to this important process.
In the meantime, the instances of conflict and suffering throughout the world remain plentiful. The recent assassination of Pakistani opposition leader Benazir Bhutto brings home with terrifying impact the combination of hatred and violence that haunts our times. We share the sense of outrage and disgust that this act has provoked.
A new source of concern has arisen in Kenya in the wake of recent developments. We hope that, with the support and encouragement of the international community, the Kenyan people will find the internal strength and resiliency to overcome their current difficulties.
Excellencies,
I must not let this occasion go by without mentioning two important Anniversaries which Malta, and the International Community, celebrated last November 2007, related to the UN Convention on the Law of the Sea, namely, the 40th Anniversary of the launching of the initiative by Malta and Ambassador Arvid Pardo’s historic address to the First Committee of the United Nations, and the 25th Anniversary of the adoption and opening for signature of the Convention.
Last December I joined the other European leaders in signing the Lisbon treaty. This treaty constitutes an important step in reinforcing the European architecture to meet the challenges of the 21st century. At the same time we are satisfied that the treaty’s fundamental inspirations remain the Union’s commitment towards freedom, peace and prosperity, its respect for the equality of all members states, and its openness towards the rest of the world.
Among the many other significant developments that took place within the European Union over the last twelve months I would like to mention the publication of the Commission’s communication and Action Plan on a Common Maritime Policy. We wish to commend Commissioner Joe Borg’s impressive contribution to the thinking on a subject which is of major interest and importance for Malta. We will be taking an active part in the continuing consultations on this matter.
At the national level the prospects for the coming months are encouraging, in spite of the current turbulence in the international financial situation. I expect that those same positive factors that have permitted us to meet successfully the challenge of adopting the Euro will help us maintain a steady course in our economic development.
The headline figures indicate an increasingly robust economy. Towards the end of 2007 our annual growth was exceeding 4% in real terms and unemployment was under 4%. Tourism was marking a 10% increase over the previous year.
In the first seven months of the year our exports had risen by almost 6% while our imports had decreased by just over 3%. Manufacturing production was increasing by over 4%.
Inflation, which had been contained throughout the first part of the year, had edged upward to over 3% towards the end of the year, owing to the negative affects of global price increases in energy and food.
Many of the factors underlying these figures offer cause for added encouragement. The noticeable improvement in our employment situation has been largely due to growth in the productive private sector, which now employs almost 70% of the Maltese workforce.
Tourists are not only arriving in greater numbers but, on a per capita basis, they are spending more during their stay in Malta.
The structural deficit continues to recede at an impressive rate. In 2007 it was estimated at 2.1%. This year we are projecting a deficit of only 1.2%. By 2010, at this rate, we should be able to be in surplus. The public debt/Gross Domestic Product ratio stands at 63% down from 73% in 2004. Annual net foreign direct investment is equivalent to an amount equal to around 26 % of our Gross Domestic Product.
In the coming months we intend to exploit the healthy state of our economy to further reinforce the social dimension of our development process. Particular attention will be devoted to aspects relating to employment, education and health.
Safeguarding employment, and enhancing productivity and rewards, are important objectives. Last year we experienced the closure of factories in the textile sector resulting in the loss of many jobs. In terms of numbers these losses were made up through openings in other sectors. We expect that continued growth in these other sectors, especially the services sector, will keep our employment figures buoyant.
At the same time we must not forget the individual distress that accompanies redundancies. The assistance we will be getting from the European Globalisation adjustment Fund will help us meet our responsibilities to help redundant workers find alternative employment..
Education continues to be one of our prime targets. Currently 50% of Maltese students complete at least an upper secondary education, and 16% go on to the tertiary level. Our aim is that by 2015, 85% of our 16 year olds will be in a position to pursue educational studies.
In pursuit of this objective we plan to invest heavily in the construction and modernization of schools, in enhancing teacher training and in further introducing state of the art technology in all our schools.
In the health sector, following the inauguration of the new hospital last year, we plan to make further substantial commitments towards the improvement of services. One of our primary targets in this sector will be the fight against cancer. Special attention will also be given to the situation of persons with a disability. We have already signed the United Nations Convention on the Rights of Persons with Disabilities, and this year we plan to ratify this Convention.
The implementation of projects utilising European Cohesion Policy Funds is now well under way. Our extensive road improvement programme is proceeding according to plan.
The safeguarding of our environment is an important area which we cannot afford to neglect. An allocation of 25 million Euro from the Structural Funds (European Regional Development Fund) has been made to encourage businesses, households and public bodies to switch to renewable energy sources and energy efficient equipment.
Attention to the needs of our sister island also remains high on our list priorities. Funds from the European Union regularly supplement national funds in the financing of a number of major infrastructural and other projects in Gozo. A Government commitment is enshrined in the Operational Programme to allocate a minimum of 10% to Gozo projects.
Excellencies,
In undertaking these tasks, our basic objective remains the continuing development of Malta into a prosperous, efficient and humane society founded on the principles of democratic governance, the rule of law and social justice, and inspired by a spirit of commitment, partnership and solidarity both internally as well as within the wider international community.
In this spirit, I also look forward to the opportunities for productive collaboration between our respective countries that will present themselves in the coming months.
In conclusion, I wish to extend once again my greetings and best wishes, together with the hope that our common endeavours will contribute towards the further consolidation of our bilateral relations, as well as towards our collective task of promoting peace, justice and prosperity for all.
DOI – 11.01.2008
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