CERCLE DIPLOMATIQUE - issue 01/2017

LE MONDE MALTA | INTERVIEW
PROMOTION
“Instability beyond Europe‘s borders
could have ripple effects on the
stability of the European Union.
Our security is also interlinked with
that of our neighbours.“
Our aim is to conclude legislation that was already
being negotiated, in a collective effort, while also remaining
committed towards the completion of the
Internal Energy Market. As I said, the challenges Europe
is facing are complex. We do not intend to be
revolutionary but we are rather aiming at proposing
minor solutions to these big challenges.
Malta: 50 years of economic development
Industry is not the first thing which comes to mind when
Malta is mentioned. Better known for a vibrant history and as
a holiday destination, the small island nation also has a strong
manufacturing base and associated support services which
contribute over 30% to the country’s GDP.
Ambassador Keith Azzopardi
with CD-author Rainer
Himmelfreundpointner.
ards to enhance their border management capacity. In
short, the EU is finally committing towards securing
its southern border through concrete actions agreed
upon in Malta.
Malta itself is considered as a safe and secure country.
Nevertheless you still chose security as one of the
presidency’s priorities. Why so?
Addressing security is not an option but a must. Following
what has happened in Brussels, Paris, Istanbul
and in other parts of the world, adds to the pressure of
ensuring the security of European citizens. We must
remain vigilant. Malta will seek to achieve progress on
current initiatives aimed at combating terrorism and
in better managing the Union’s external borders. Security
is also interlinked to that of our neighbours. As
an overarching priority of Malta’s Presidency, particular
attention is being given to the Mediterranean. This
includes the situation in Libya, the democratic transition
in Tunisia and the deepening of relations between
the EU and the League of Arab States. Instability beyond
Europe’s borders could have ripple effects on the
stability of the Union. Having said that, engagement
with the Eastern Neighbourhood and Russia will remain
important, as will the EU’s relations with the
Western Balkans and Turkey.
The single market also features high on Malta’s EU
Presidency agenda. What is your strategy to improve the
current situation and overcome any shortcomings?
We strongly believe that the single market is the
Union’s biggest asset. We need to exploit the single
market and develop the digital single market, which
could benefit European citizens and businesses alike.
Brexit adds to the challenges Malta has to face during its
presidency. As a member of the Commonwealth and a
country with very strong ties to United Kingdom, how will
Malta deal with this?
It is quite an irony that a country currently presiding
the Commonwealth is holding the Presidency of the
Council of the EU at a time when the UK will trigger
Article 50, the process by which it will eventually cease
to be an EU member. The UK will get the best deal
possible but, one understands, this has to be inferior
to EU membership.
Let‘s now talk about more, hopefully, light and interesting
issues. Since your accreditation as Ambassador to Austria,
which personal impressions of the country have you gathered
so far?
After more than three years living in Austria I have to
admit that I still cannot have enough of the scenic
beauty of the country’s mountains and nature, the picturesque
cities and small towns in different regions.
Vienna is a classic example. One cannot live in Vienna
and not appreciate the music it offers. I have to mention
the beauty of Graz – a city with such a Mediterranean
flair and rich culture, or the crystal-clear lakes in
Carinthia. I can go on and on. I have visited the country
before, but living in a country for a longer period,
gives you another perspective of the country and the
opportunity to appreciate what one cannot fulfil during
a short trip. I will definitely carry with me this
positive image of Austria no matter where my destiny
will take me next.
How is the current relationship between Malta and Austria?
Can you also provide us with a glance at the historic
development of relations between Malta and Austria?
Very good indeed! Actually, our relationship with
what we know today as Austria dates back to the 16th
century. Between 1530 and 1798, there were among
the Knights of Malta quite a number from the Austrian
territories. They held important posts in the
Government of Malta, in diplomacy, navy and military.
Since the relations between the two countries were
Story continues on p. 42 ➝
PHOTOS: RALPH MANFREDA
PHOTOS: MALTA ENTERPRISE • ENTGELTLICHE EINSCHALTUNG
A
sector which in its early days in the 50s and 60s made use of Malta’s low
cost base, industry in Malta has thrived in spite of challenging global circumstances.
Changing cost structures, while still very competitive when
compared to the Western European nations, led operators to switch to products
with a high added value which necessitated the input of a well-trained workforce.
Indeed, this workforce is the main resource which Malta has and, in view of this,
successive administrations have invested heavily in the educational sector to ensure
a steady supply of trained employees.
This ability to adapt to a changing world has resulted in an advanced manufacturing
sector which covers a remarkably wide range of areas including automotive
components, plastics, precision engineering, pharmaceuticals and medical devices.
This deliberate policy of spreading of risk has meant that Malta has been
able to consistently weather international economic upheaval as downturns in
specific sectors are more than compensated for by the continued strong performance
of other areas of the economy. The past year saw the country deliver the
highest growth rates in the EU, with an increase of over 6% in GDP and with
predictions for this year looking equally positive.
All this provides that essential factor so important to any investor: stability. It
is this economic, political and social stability which has provided a bedrock for
existing operations and serves as an attraction to a steady stream of new investors.
It is no fluke that in 2017 the country will be marking 50 years of operations of a
number of important investors who have developed, adapted and thrived in Malta.
In addition to this stability, there are a multitude of other factors which collectively
make Malta an ideal base for business. Chief amongst these is the abovementioned
quality of the human resources, who are invariably described by
investors as productive, flexible, easily trained and loyal. The fact that English is
an official language simplifies not only the provision of training, but also interactions
with other stakeholders and suppliers as well as access to legislation.
A highly developed communications infrastructure ensures reliable interaction
with other countries, while daily flight connections to various international
hubs facilitate the appropriate levels of contact between supplier and client. The
transparent, fully onshore, yet remarkably competitive tax system is undoubtedly
another important factor in attracting investors to Malta. A system which is in full
conformity with EU legislation, is backed up by over 60 Double Taxation Agreements
and yet allows for competitive tax rates is one which adds a great deal of
value to any Malta-based operation. These benefits are further complemented by
a wide range of assistance provided by Malta Enterprise, the country‘s economic
development agency, which seeks to ensure that any investor will get the best possible
benefits out of a Malta operation. This comprises assistance during the initial
information-gathering phase including the organisation of fact finding visits;
investment aid and access to finance to facilitate investment; as well as the allocation
of industrial space.
All the above factors, together with the fact that Malta can offer an excellent
quality of life thereby making it an attractive base for management and their families,
make this small yet energetic island an ideal location for any investor wishing
to access various markets in the EU as well as North Africa and the Middle East
from a location which offers long term peace of mind.
Further information may be accessed on www.maltaenterprise.com.
Malta has been a home to a thriving manufacturing industry
for half a century
40 Cercle Diplomatique 1/2017