EU policy to focus attention on SMEs and tourism

Vice-President of the European Commission Antonio Tajani said that the European Union needed to coordinate and push for a ‘real economy’ and not just focus on financial services. “There is a need for more innovation and research. There aren’t enough Small and Medium Enterprises accessing a single market. These SMEs need access to credit and delays in courts are making this access more difficult,” Tajani said.

During a high profile debate organised by the Malta Business Bureau, Tajani also addressed the importance of tourism in Europe which he believes has been ignored for too long. “Selling our beaches and history is not enough. We need to simplify EU Visa regulations for Brazil, Russia, China and India in order to allow more tourists into the EU,” Tajani said.

Finance minister Tonio Fenech said that innovation is the key to economic growth and prosperity. “Malta is still playing catch-up but the government is introducing research and development initiatives while investing in tax benefits for SMEs to reach targets.”

Minister for fair competition, small business and consumers Jason Azzopardi said that policies directly targeting sub-standardisation and innovation were required. “We need an industrial policy which will create a platform for SMEs to partake in cross-border transactions and try to open the EU market in South America which is an area which has not yet been given importance by the EU.”

Azzopardi said that there had been improvement when it comes to impact assessments for small businesses but more is required particularly in the area of academia. “The government truly believes in a continuous dialogue between the university and businesses to identify the skills and avoid mismatching when it comes to job creation.”

The University’s sociology department commenced work on a study to identify the typology of the Maltese entrepreneur which Azzopardi said will be a study to tailor-make better positions for new employment. “This will help increase employment and social inclusion which will result in greater competitiveness within the economy and greater productivity.”

Tourism minister Mario de Marco appreciated Tajani’s announcement of the importance being given to tourism and said it was a driving force for Malta’s economy. “It is crucial to promote responsible and sustainable tourism in the EU as a number one tourist destination. The key for survival in the economic crisis is a viable tourism strategy which will drive up revenue by increasing accessibility and address the challenge to be more innovative to attract tourists for longer stays.”

De Marco also addressed the issue of tourism seasonality and job creation while generating projects which respect the environment, culture and society. “Priority also needs to be given a cohesion policy which focuses on ICT together with innovation and tourism because ICT is a driving force for tourism.”

Reiterating Tajani’s call for simplified Visa regulations, de Marco emphasised the need to diversify social markets. “The Schengen regulations are causing problems because not all people coming from countries like Brazil, Russia, China and India are threats. Regulations need to be changed so they can be allowed to holiday in EU countries.”

During an open-floor discussion Tajani was asked how far the EU Commission would go toward monitoring SME policies in EU and what the costs would be of certain changes and their impacts.

“An EU strategy is important but the situation is not easy, even within the council itself as not all member states are in favour of the policy being proposed. This is an obstacle for the SME market and we need to work together for growth and job creation,” Tajani said.

He added that the problem was not the money but the connecting link between SMEs and new investments.

“It is important to back the investments and invest in joint venture projects while working with other countries with same targets. We need a policy for job growth in all countries and we need to work with Malta to improve energy and address the transport problem to increase tourism,” Tajani said.

The EU commissioner said that one strong European policy was needed to also promote Malta in the EU tourism sector by including local cultural events and sights as part of packages provided by tourist holiday operators.

“It is important to present Malta as part of the EU and I want to increase the number of tourists to Malta under the EU flag. It is important to spread the message that the EU flag is important for smaller countries in the EU,” Tajani said.

Echoing the importance of working collectively under the EU flag, Tajani also said that individual member states cannot succeed at an international economic level alone but must work with fellow member states under the EU title. “There is strong competition within the EU between SMEs and it is important to pave the way in the internal market to increase the number of joint ventures for economic growth.”

Making particular reference to Malta, Tajani said that it was important to understand what is happening in each country. “Where would Malta be without the EU? Malta as a small country needs the EU and needs to work with some countries more than others in order to succeed.” 

President of the Malta Chamber of Commerce Tancrid Tabone discussed the effect of the Libyan crisis on Maltese SMEs who had business interests in Libya but don’t always receive the necessary assistance from their EU counterparts.

Tajani said that the instability in Libya was making it difficult to establish business relations. “Al Qaeda, fundamentalists and the instability in Libya make it difficult for business relations due to the security problem.

“It is easier to work with countries like Egypt, where I am currently working on an EU strategy to back SMEs in the Tunisian economy. It’s difficult in Libya due to the uncertainty and no one knows what is happening,” Tajani said.

MHRA President Tony Zahra said that Malta was not like other countries and had not requested any bailouts but Malta had a problem with Air Malta. “Air Malta is our national airline and is having to undergo a restructuring programme at our own expense. We are not asking for money.

“We are asking for you to let us keep some of the money that we make and not keeping piling regulations and legislations. Give us the space to work and breather. Please, don’t touch our airline,” Zahra said. 

During the debate’s closing speech MBB President John Huber said that Europe needed to bridge a gap between policy makers and SMEs. “The business community is one of the most important constituents in the EU political debate.

“In this respect, the MBB fully supports the European Commissions’ ‘Enterprise experience programme’ whereby officials from the Commission are undergoing a personal experience within SMEs, in order to understand the day-to-day realities of firms in Europe,” Huber said.

Huber also said that the MBB envisaged a more pro-active participation from the business community during ongoing consultation processes. “These are crucial for business representatives in order to communicate the right message to the European Commission.

“We need to take EU policy formulation more seriously in order to avoid missing the train when important decisions affecting the future of our respective industries are made,” Huber said.