Malta fends off German request for slower release of EU funds

Finance Minister Tonio Fenech has joined 11 other EU finance ministers in signing a joint position for the European Union not jeopardise cohesion funds already earmarked for 2013, which Germany, Denmark, Sweden and Finland want to reduce.

The funds belong to the last tranche in the 2007-2013 EU budget. The four member states are proposing to extend the distribution of the 2013 funds, over two years. Together with a number of like-minded Member States, who also form part of the 'Friends of Cohesion' group, Malta signed a joint statement to support the Commission's proposal for securing sufficient payments in the 2013 budget for Cohesion Policy.

"These funds are a guarantee for economic growth and investment in so many capital projects. 2013 is the year where the most money will be paid out," Fenech said.

The importance of the EU's funds for 2013 are an intrinsic part of the Nationalist government's electoral strategy during the same year.

During the meeting, the Commission presented its draft EU general budget for 2013. The draft budget provides for payments set at  €137.9 billion and commitments of €150.9 billion. Tonio Fenech welcomed the Commission's proposal, particularly its focus on growth and investment at the European level.

Fenech said Malta was adopting a wait-and-see approach to the Greek crisis, auguring a solution to the political stalemate to the problems in forming a government coalition.

Answering to claims of oil exploration being a lynchpin in government's economic strategy, as highlighted in the recent IMF report, Malta intends pursuing oil interests but said this was not a key economic target to guarantee growth.

During the European Council's finance ministers' meeting in Brussels, ministers reached a general approach agreement on two proposals to amend the capital requirement rules for banks and investment firms at a European level. The proposals amend and replace the existing Capital Requirement Directive (CRD) and divide them into two new legislative instruments: a Regulation establishing prudential requirements that financial institutions need to respect and a Directive governing access to deposit-taking activities.

The objective of this legislative package is to strengthen the governance and supervision requirements of financial institutions and  increase the resilience of the EU's banks.
 
Ministers also adopted Council Conclusions endorsing the '2012 Ageing Report' which was jointly prepared by the Economic Policy Committee and the European Commission. The report addresses age-related expenditure projections for Member States up the 2060. It examines the sustainability of public expenditure in individual countries in pensions, health care, long-term care, education and unemployment benefits. In the Council Conclusions, ministers highlighted the need for action to minimise the challenges posed by expenditure related to ageing.