MBR_ISSUE 47_JAN_LR

COVER STORY 

PROVIDING INNOVATIVE CARE 

TALKING POINT 

WHY GOOD JOURNALISM MATTERS 

EXCLUSIVE INTERVIEW 

EVALUATING CORRUPTION: SOMETHING 

ROTTEN AROUND THE WORLD 

SPECIAL FEATURE 

YOU ARE NOT A ROBOTIC MACHINE, 

AND HERE’S WHY 

Interview with Umana Medical CEO, 

Dr Adrian Attard Trevisan p.06 

Former U.S. Congressman Lee Hamilton 

tells why watchdog journalism is integral 

to democracy and justice p.10 

Exclusive interview with Dr Enrico Tezza, 

the co-author of Evaluating Corruption p.12 

Deepak Chopra, Rudolph E. Tanzi, and P. 

Murali Doraiswamy p.24 

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ISSUE 47 | 2019 

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Malta Business Review 

CONTENTS 

Issue 45 

24 YOU ARE NOT A ROBOTIC MACHINE, AND HERE’S 

WHY 

Deepak Chopra, Rudolph E. Tanzi, and P. Murali 

Doraiswamy explain why we should see ourselves 

as free agents capable of conscious change rather 

than a robot machine 

SPECIAL FEATURE: EESC SEMINAR FOR 

JOURNALISTS 

COVER STORY 

6 

26 REUNAISSANCE – DARE A SUSTAINABLE EU- 

ROPE 

President Luca Jahier’s agenda for change based on three 

priorities: sustainable development, peace and culture 

06 

PROVIDING INNOVATIVE CARE 

Interview with Chief Executive Officer of Umana Medical, Dr 

Adrian Attard Trevisan 

TALKING POINT 

10 WHY GOOD JOURNALISM MATTERS 

Former U.S. Congressman Lee Hamilton, a veteran of 34 

years in the House of Representatives 

on why watchdog journalism is integral to democracy and 

justice 

28 MEMBER STATES JEOPARDISING THE RULE OF 

LAW WILL RISK LOSING EU FUNDS 

Presentation of the conclusions of the EC’s high-level 

debate on Towards a Sustainable Europe by 2030, 

with Frans Timmermans, First Vice-President of the 

European Commission 


12 EVALUATING CORRUPTION: SOMETHING 

ROTTEN AROUND THE WORLD 

Andre’ Camilleri’s exclusive interview with Dr Enrico Tezza, 

the co-author of a new book entitled Evaluating 

Corruption 

10 

16 

INTERVIEWS & FEATURES 

16 LEADING WITH INNOVATION 

Discover more about Saviour Camilleri Interior Design & 

architecture Ltd. & Camilleri Burlo- architects & designers 

18 

24 

18 THE DACOBY EXPERIENCE 

MBR talks with Darren Zarb, Managing Director of Dacoby 

Chauffeur Service 

SPECIAL STORIES/REPORTS 

30 POLITICO BRUSSELS PLAYBOOK 

20 CONSTANT REINVENTION 

Kurt Camillieri, Managing Director, O & S Shipping, 

shares his vision with MBR readers 

OUR GOLDEN PARTNERS 

A Playbook Quiz and roundup of the top 10 moments of 

2018 

34 TRENDING STORIES 

New feature double-page spread on most topical 

issues being discussed 

SIMON 

ESTATES 

SIMON 

ESTATES 

39 THE PROBLEM WITH ‘HIRING PEOPLE ON 

MERIT' 

A Breaking Barriers series courtesy of Virgin exploring the 

barriers to fair work opportunities and employment 

4

COVER STORY 

Connecting Malta for a better 

Future 

Interview Sonia Hernandez, Vodafone 

Malta’s new CEO p.06 

Newspaper Post 


Artificial Intelligence and Customer 

Service – Here to help? 

Interview with Pierre Mallia, Managing 

Director, iMovo p.12 

CORPORATE INTERVIEW 

Organizational Standard, Excellence 

& Outstanding Achievement 

Interview with Mark Farrugia, Regional 

Director at Lidl Malta Ltd p.16 

SPECIAL FEATURE: SRB 

Delivering Financial Stability 

Exclusive Interview with (SRB) Chair, Elke 

Könige p.28 

MALTA 

BUSINESS REVIEW 

MALTA BUSINESS REVIEW 

ISSUE 46 | 2018 

EDITORIAL 


BIRKIRKARA, MALTA – About two-thirds of the way through creating and writing special 

features for this month’s issue of MBR, and running through one of my vast projects for 2019, I 

emailed a few colleagues: “Help. My feature is so sublime. Do you know anyone hopeful I can 

interview?” My feature remained mostly sublime. 

PUBLISHER 

MBR Publications Limited 

OFFICES 

Highland Apartment - Level 1, 

Naxxar Road, 

Birkirkara, BKR 9042 

+356 2149 7814 

EDITOR 

Martin Vella 

TECHNICAL ADVISOR 

Marcelle D’Argy Smith 

SALES DIRECTOR 

Margaret Brincat 

DESIGN 

MBR Design 

ADVERTISING 

Call: 9940 6743 or 9926 0163/4/6; 

Email: margaret@mbrpublications.net 

or admin@mbrpublications.net 

CONTRIBUTORS 

Andre Camilleri; George Carol; Baptiste 

Chatain; Deepak Chopra; Chip Cutter; P. Murali 

Doraiswamy; Thomas Haahr; Lee Hamilton; 

Solvig Kielveland; Jack Preston; Rudolph E. 

Tanzi 

SPECIAL THANKS 

DOI; European Parliament Information Office in 

Malta; European Parliament, Directorate- General 

for Communication/Press Office; European 

Research Council; FIMBank; HSBC; LinkedIn; 

Edwards Lowell & Co.; MORGEN EUROPA; OPR; 

POLITICO SPRL; Politico Playbook; PTV Group; 

Taylor & Francis Group. 

PRINT PRODUCTION 

Gutenberg Press Ltd 

QUOTE OF THE MONTH 

"There are no secrets to success. It is the result 

of preparation, hard work, and learning from 

failure." 

-- Colin Powell 

Disclaimer 

All rights reserved. No part of this work covered by copyright may 

be reproduced or copied and reproduction in whole or part is strictly 

prohibited without written permission of the publisher. All content 

material available on this publication is duly protected by Maltese 

and International Law. No person, organisation, other publisher or 

online web content manager should rely, or on any way act upon 

any part of the contents of this publication, whether that information 

is sourced from the website, magazine or related product without 

first obtaining the publisher’s consent. The opinions expressed in the 

Malta Business Review are those of the authors or contributors, and 

are not necessarily those of the editor or publisher. 

We live in an anxious age; there is no writing around it. It’s been hard even for me, as glass-halffull 

as they come, to not succumb to the tide. An unevenly shared personal injury recovery has 

done little to assuage the fury and despair that comes from knowing hard work isn’t enough. 

Business feels harsher than ever and AI is coming for our jobs. Politics, the process by which 

we come together to administer our shared destiny, is dividing us instead, as we are led by 

trumpeters, musketeers and fakes. We once disagreed on objectives and methods; we now 

tear into one another’s motives, even our very right to exist. We battle for the power we are 

losing and the right to know which we have been denied. We are outraged and tired of our outrage. We distrust most institutions, from 

our government to our politicians and the tech companies woven into our daily lives. We retreat into our cellulars and desert the places 

that once connected us. And all of that seems insignificant next to climate change, a crisis we built of our own hands yet feel powerless 

to stop. 

And so we are exhausted. When the problems seem so much larger than our power to solve them, tuning out becomes a means of 

self-preservation. Let us tend our gardens, as Voltaire’s Candide said, and let the world go quiet. For a while I, professional journalist and 

lifelong news junkie, switched my alarm clock to the sounds of birds chirping because the endless drone of BBC Radio 4’s Today show – 

Brexit, Brexit, Brexit – guaranteed I woke up every day with a panic attack. But white noise only covers the tumult, it does not end it. The 

temptation to bow out of public discourse, to hunker down into the private sphere where you are safe and understood while the winds 

rage outside, is as real as it is dangerous. I suspect those who feel the greatest strain are those we most need in the public sphere – people 

with enough care and empathy to burn out in the first place. What then is a responsible citizen of Europe to do? Stare into the hollow 

faces of our two main political leaders and you will discover no leadership at all! 

They should do, precisely. Anger bottled up leads to anxiety, argues feminist author Rebecca Traister in Good and Mad (an imperfect 

book but if nothing else, read the conclusion). But harnessed as fuel for action, it is a remedy, she adds. The problems I described are 

not new to 2019 – and we won’t fix them all in 2019. “That it should take a long time shouldn’t scare us. It should fortify us,” Traister 

writes. There is solace in doing, with a healthy detachment from ends we may never see. I remember the motto handed down by one of 

my idols in this profession, French journalist Bernard Guetta, who borrowed it from Jean Monnet, one of the founders of the European 

Union: “I am not optimistic, I am determined.” The tempest will rage on outside and all we can do is what is right. The fight is only lost 

when we give it up. But where do we find the strength not to? 

The holidays we celebrated before the New Year offer an answer. The British, bless them, do Christmas right, even if they got Brexit 

wrong. Celebrations start as early as November in an endless whirl of occasions: there’s Christmas with friends at the pub and Christmas 

with colleagues at the pub. The big office party and the smaller team lunch. The school nativity play with the kids and the choir service 

at the cathedral. I was caught out without Christmas cards, before I learned that the English trade them by the dozen with every friend, 

colleague, neighbour or vendor who has touched their lives. By the time December 25th rolls around, your liver has already given out 

but your heart is full. 

The small communities we have recently reconnected– families of every shape, childhood friends, tight-knit teams – are the perfect 

antidote to this anxious age. The private sphere, if you don’t hide there too long, can be a salutary retreat, a springboard from which you 

return to public action, a charging station for the year ahead. From community comes solace, and the strength to continue to engage. 

That is if you have caring, engaging family members and not detached, self-obsessed ones mired in the Ghost of Christmas Past! The 

ghost is surreal and strange. It flickers like a candle and seems to reflect the fact that Scrooge's past behaviour can be redeemed. Alas, the 

disintegrated, estranged and disenchanting family members do not realise that life can be redeemed. 

Go ahead, tend your gardens then. The enigmatic last sentence of Candide has had as many interpretations as readers. It is not, to me, 

a call to selfish escapism. It is an injunction to cultivate our talents and calmly and resolutely do what we can, at our level, to better 

ourselves and the world. So I will see you in February, as I’m off to tend my garden. 

Martin Vella 

Editor-in-Chief 

Talk to us: 

E-mail: martin@mbrpublications.net 

Twitter: @MBRPublications 

Facebook: www.facebook.com/MaltaBusinessReview 

Malta Business Review’s editorial opinions are decided by its Editor, and besides reflecting the Editor’s 

opinion, are written to represent a fair and impartial representation of facts, events and provide a correct 

analysis of local and international news. 

Agents for: 

www.maltabusinessreview.net 

5


COVER STORY INTERVIEW 

Providing Innovative Care 

By Martin Vella 

In an exclusive interview, Chief Executive Officer, Dr Adrian Attard Trevisan, discusses his insights into 

the transformation of Umana Medical, an award winning company with a market leading healthcare 

management service that bridges accessibility gaps for clients in the ever-evolving world of quality 

healthcare. 

MBR: What makes Umana Medical and its 

solutions stand out in the market? 

AT: The market at the moment is full of Metoo 

products, whereby every organization 

checks what the competition is doing and 

work on enhancing the product for better 

results. In our case we revamped the whole 

process and came with a new concept built 

around Artificial Intelligence taking into 

consideration the economic difficulties and 

making it reachable to all who need it. 

I feel one of the biggest trends, especially 

in terms of potential, is big-data driven 

Artificial Intelligence (AI). We are seeing 

AI being used across a range of industries, 

but healthcare is such a perfect area for it 

to make a huge impact. One of the biggest 

difficulties we see in healthcare, especially 

in the public sector, is one of efficiency and 

limited resources. AI’s ability to sift through 

vast amounts of data to find patterns, 

associations and insights is invaluable to not 

only addressing these problems, but creating 

superior healthcare all round. Umana 

"Umana Medical 

and specifically 

AI will help fill 

gaps in this global 

industry. 

Medical and specifically AI will help fill gaps 

in this global industry where there are a lack 

of experienced doctors, nurses, radiologists, 

pathologists, etc. 

MBR: What makes a good year for Umana 

Medical? Is it the new hit products? The 

stock price? 

AT: A good year would be a mix of all. We 

are definitely working to have great products 

available in the market that will surely 

provide decent return on investment to the 

people who believe in us and made our work 

possible 

MBR: Do you look back at some years and 

say, ‘Oh, that was a good year, that year 

wasn’t as good’? Which would you define 

as your best year so far? 

AT: I believe that the best year was 2018 

so far as we got the regulatory/patent 

approvals. However, this year we are 

growing very fast, so I believe this will be the 

best ever year so far. 

MBR: Given the relentless pace of change 

in the world, how do you prioritize what 

Umana Medical is going to spend its time 

on, which things deserve attention and 

which things are distractions? 

AT: It is true everything is moving at a fast 

pace, yet our priorities never drift. We stick 

Dr Adrian Attard Trevisan and the Umana Medical team celebrating at the Malta Best In Business Awards 2018 

6

COVER STORY INTERVIEW 


AT: People forget that greatness never 

happened over night and that you should 

never under estimate the power of a small 

number of dedicated people to change the 

world. MBR 

Umana Medical Tattoo Sensor 

Dr Adrian Attard Trevisan 

"You should have 

the right product 

to approach the 

right investor. 

to the main pillars that govern our work and 

everything that we do must be related to 

the main three pillars of the organization, 

otherwise they are put on the side for later. 

MBR: Do the investment markets make 

innovation harder? Or are your partners 

who motivate change? 

AT: Everyday new companies enter the 

markets and at the same time everyday 

companies exit for various reasons. You 

should have the right product to approach 

the right investor. When your investors 

believe in your capabilities and technologies 

you end up innovating and providing 

products at a reasonable pace that will have 

a place in the global market and not be 

considered a Fad. 

MBR: How can Umana Medical help to 

improve the Maltese healthcare system 

and to focus on the global patient more 

intensively? 

AT: Umana provides innovative products 

with minimal effort to use and provide 

excellent analytics. 

MBR: So what compels you to wow your 

clients and patients, year after year with 

new products? 

AT: When you have the best interest of 

patients at heart you constantly work to 

innovate and come up with technologies 

that would ease their pain and speed up 

diagnosis of tough diseases for better cure 

outcomes. 

MBR: There’s a lot of talk right now at big 

tech companies about the unintended 

consequences of technological advances. 

How do you keep your ear open to those 

potential things without slowing down the 

machinery of change? 

AT: The presence of technology does not 

mean you must use it. It is important to 

choose wisely what can and cannot use. 

MBR: What do people misunderstand or 

underappreciate about Umana Medical? 

Editor’s Note 

Dr Adrian Attard Trevisan is co-founder 

and Chief Executive Officer of Umana 

Medical Technologies, which offers 

innovative clinical-grade solutions for 

long-term monitoring of physiological 

parameters complemented with an 

ecosystem of clinical grade software, 

hardware and artificial neural 

algorithms that ensures the highest 

quality and reliability of data gathered 

and analysed He holds a Doctorate 

in the field of Human Physiology and 

Neurophysiology and is a research fellow 

at the Bedfordshire Center for Mental 

Health Research in association with 

the University of Cambridge. He is also 

an entrepreneur, and before Umana 

Medical, he founded and acted as Chief 

Executive Officer and Chief Scientific 

Officer of AAT Research (now Neurotech 

International) a publicly listed company 

on the Australian Securities Exchange 

(ASX). 

All rights reserved - Copyright 2019 


7

Malta Business Review EU ELECTIONS 2019 

EU elections: Support for EU and the lead 

candidates process continues to rise 

By Jaume Duch Guillot 

& Neil Corlett 

A new flash survey of EU citizens has 

underscored the increasing support for the 

European Union and growing awareness of 

next year’s elections. 

• 68% of citizens see EU membership as 

a good thing 

• 47% of respondents have already heard 

about the European elections in May 

2019 

• 77% of citizens want a real debate 

about the future of the EU between the 

lead candidates for the next European 

elections 

• 68% of European citizens believe their 

country’s EU membership to be a good 

thing. 

A fresh Eurobarometer survey commissioned 

by the European Parliament reveals. 

The first results of the telephone survey 

conducted with 26,071 respondents in 

the EU-27 show a continuous increase in 

support for the European Union. While 

60% of respondents interviewed in the 

April 2018 Eurobarometer survey found EU 

membership to be a good thing, this result 

rose to 62% in September 2018 and again 

to 68% in the Flash Eurobarometer survey 

released today. The current legislature of 

the European Parliament has thus witnessed 

almost continuously increasing support for 

the European Union, including encouraging 

positive developments in many member 

states. 

As the 2019 European elections are 

getting closer, 47% of respondents recall 

having heard recently about the European 

elections in the media. Conversely, 52% of 

respondents cannot recall having heard 

anything about the European elections in 

the news lately. 

Parliament’s Flash Eurobarometer also 

explores citizens’ views on the renewed 

lead candidates’ process for the European 

elections. Being able to take part in the 

process of electing the next President of 

the European Commission for the second 

time is clearly perceived as an encouraging 

factor by citizens. 57% of respondents 

overall say this would make them more likely 

to vote, including 24% who say it would 

“definitely” make them more likely to vote 

than at present. On the contrary, 36% of 

respondents would not find themselves 

more likely to vote. 

Asked about their attitudes towards the 

lead candidates’ process, the present Flash 

Eurobarometer shows that those surveyed 

are continuously positive. Compared with 

results from April 2018, 67% of respondents 

say that this process both represents 

significant progress for democracy within 

the EU (61% in April 2018) and makes the 

process of electing the President of the 

European Commission more transparent 

(63%). Yet the most important result is that 

EU citizens reiterate their strong call for a 

‘real debate about European issues and 

the future of the EU’, in order for the lead 

candidate process to make any real sense, an 

increase of 7 percentage points compared to 

April 2018. 

The Flash Eurobarometer further dedicated 

a section to media recall questions, showing 

that six out of ten of those interviewed 

Europeans (60%) recall having recently 

read in the press, seen on the internet or 

on television or heard on the radio about 

the European Parliament’s activities. This 

result is the highest in Poland, with 75% of 

respondents recalling that they have heard 

recently about the European Parliament in 

the news, followed by Finland and Sweden 

(both 73%), Germany (72%) as well as 

Hungary and Austrian, both with 70%. Asked 

about the concrete topics they could recall, 

immigration comes top with 77%, cited first 

in 20 member states, followed by climate 

change (70%), and the issue of economy and 

growth (63%). 

Editor’s Note: 

The Flash Eurobarometer was conducted by 

Kantar Public for the European Parliament 

with 26,071 telephone interviews in the 

EU-27 countries among citizens aged 15 

or more. The fieldwork was conducted 

between 26 November and 3 December 

2018. A graphical presentation of the first 

results presented in this press release can be 

found here. Full data tables and countryspecific 

factsheets will be published later 

this week. 

Jaume Duch Guillot is the EP Spokesperson 

and Director General for Communication 

Neil Corlett is the Head of the Press Unit EP 

MBR 

Credits: EP Press Office/Valletta & Brussels 

8

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ANALYSIS & DEBATE 

Why Good Journalism Matters 

By Lee Hamilton 

Lee Hamilton 

I have been involved in politics and policymaking 

for over 50 years, and as you 

can imagine I hold strong feelings about 

reporters and the media. They’re not what 

you might think, however. 

Far from considering journalists to be 

irritating pains in the neck — though I have 

known a few who qualified — I believe them 

to be indispensable to our democracy. Our 

system rests on citizens’ ability to make 

discriminating judgments about policies and 

politicians. Without the news, information 

and analysis that the media provides, this 

would be impossible. 

We depend on journalists and the outlets 

they work for to be our surrogates in 

holding government accountable; they can 

serve as a formidable institutional check on 

the government’s abuse of power. So I am 

uneasy about some of the directions I see 

journalism taking these days. I admire the 

role that the press has played throughout 

our history, and fervently hope that it can 

right itself to play such a role again. 

Let me note at the outset that I can find 

exceptions to everything I am about to say. 

There are journalists doing reporting that 

is clear-eyed, fearless, and grounded in 

an honest evaluation of the facts — I am 

thinking, for instance, of some of the work 

in recent years on the NSA — and this work 

has moved the national debate forward. 

But far too often, journalism falls short. 

Reporters often seem to take what 

politicians and their handlers say at face 

value, writing what they hear without 

ensuring that the facts bear it out. They look 

for winners and losers at the expense of 

nuance. They strive to give the appearance 

of even-handedness by creating a false 

balance between two sides that do not 

deserve equal weight. They elevate politics, 

polls and personality over substance and 

measured analysis. 

Too often, on Fox or MSNBC or any of a 

plethora of broadcast, print and online 

outlets, they slant the news. They engage 

in pack journalism, reminding me of 

blackbirds on a telephone line — one 

comes and others follow. And they delight 

in spotlighting the screw-up, the mistake, 

or the gaffe, which might be entertaining to 

readers but sheds no light on the underlying 

issues that could make government better if 

addressed. 

I also worry about the increasingly 

sophisticated efforts by the government 

and powerful interests to tell us only what 

they want us to know. Reporters want to 

be part of the media elite, and the White 

House in particular — under presidents of 

both parties — has become quite skillful at 

manipulating them. Reporters have to keep 

policy makers at arms length, and not be 

intimidated by them. 

I believe that much contemporary 

journalism has come untethered from a set 

of traditional values that served the country 

well over many years: 

• Journalism needs to be in the service of 

justice, asking questions, telling stories, and 

inspiring those in power and those who vote 

for them to do the right thing. 

• It should be a check on power, ferreting 

out the stories that those who hold public 

office don’t want revealed, and reporting 

the truths that we, as Americans, have the 

right to hear. 

• It must hold tight to accuracy, intellectual 

honesty, rigorous reporting, and fairness — 

values that ought never to go out of style. 

• And journalists have a profound 

responsibility to serve as lie detectors. 

A couple of years ago, the notable 

investigative reporter Seymour Hersh 

gave a speech in London in which he 

said of the U.S. government in particular, 

“The Republic’s in trouble. We lie about 

everything. Lying has become the staple.” 

You don’t have to go to that extreme to 

agree that journalists have to be curious and 

skeptical, and not buy into the conventional 

wisdom of the establishment. 

A robust, inquisitive congressional oversight 

process should be capable of revealing what 

is too often hidden, but it’s not. We need 

journalists to do it. 

In the end, my concern is that skeptical 

reporting and deeply informed investigative 

journalism are fading. We need more of 

them, not less. I want to see journalists 

digging deep into the activities of 

government, politics, business, finance, 

education, welfare, culture, and sports. 

Our Republic depends on it. 

Photo: pranavbhatt in Flickr (CC License) 

Editor’s Note: 

Embattled by criminals, corrupt politicians, 

and lawsuit-wielding oligarchs, it’s easy 

to think that investigative journalists have 

few friends in this world. But the truth is 

that we have wide support from those 

who believe in truth and accountability. 

Here’s one of those important voices — 

former U.S. Congressman Lee Hamilton, 

a veteran of 34 years in the House of 

Representatives. Hamilton served as chair 

of the House Committee on Foreign Affairs 

and the Permanent Select Committee 

on Intelligence. With a lifetime of public 

service, he is worth listening to on 

why watchdog journalism is integral to 

democracy and justice, and why we need to 

dig even deeper and push harder. MBR 

Creditline: Tweet; Taylor & Francis 

10

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INTERVIEW OF THE MONTH 

Evaluating corruption: 

something rotten around the world 

By Andre’ Camilleri 

The universality of corruption hurts everyone whose life depends on the integrity of people in a position of authority. Corruption increases 

poverty and inequality, prevents a free market and exploits marginalized groups. It increases the cost of doing business, leads to the 

inefficient use of resources, excludes people from public services, perpetuating their social degradation, undermines the rule of law and 

its is a major threat to human rights. This is why we need to combat corruption. DR ENRICO TEZZA is the co-author of a new book entitled 

Evaluating Corruption: Something Rotten Around the World. Andre Camilleri met Dott Tezza when he participated in a conference on 

professional ethics and how to safeguard the services to the consumer, which was organised by The Malta Federation of Professional 

Associations 

MBR: What made you want to write on 

corruption? 

ET: I have been studying evaluation of public 

policy for 20 years within different public 

authorities such as the Veneto Region or the 

Italian Ministry of Labour. The focus of my 

evaluation effort has been the logical link 

between Output and Result, which leads to 

the impact and related change in population 

in needs. Even during my career at the 

International Labour Organisation Turin 

Centre, I developed an evaluation model 

addressing to the effectiveness dimension of 

programmes and projects. 

In 2017, during the Green Economics 

Conference in Oxford organised by the 

Green Economics Institute, I was involved 

in a discussion on corruption and I realised 

how underestimated the evaluation 

issue in dealing with corruption is. This 

awareness leads to a study on a tentative 

evaluation framework, subsequently 

described in Evaluating Corruption, edited 

in collaboration with the Green Economics 

Institute. 

MBR: Do you think that we can overcome 

poverty by fighting corruption? 

ET: Literature highlights that corruption 

exacerbates conditions of poverty such as 

low income, poor health and education 

status, vulnerability to shocks and other 

characteristics. 

It is acknowledged that corruption increases 

poverty and inequalities, prevents a free 

market and exploits marginal groups. 

Countries experiencing chronic poverty 

are seen as natural breeding grounds for 

systemic corruption due to social and 

income inequalities and perverse economic 

incentives. The casual relationship between 

corruption and poverty has been proven 

by several studies. Hence, corruption is 

the main obstacle to fight poverty, since 

corruption feeds itself from antipoverty 

funds. Peter Eigen and Michael Wiehen, 

former World Bank officials, founded 

Transparency International, whose pressure 

urged the international organisation to 

recognise that corruption was the key 

problem in poor countries. As a result, 

considering the correlation between the 

increase of poverty rate and the increase 

of corruption in poor countries, the fight 

against corruption has been ineffective. 

However, fighting corruption remains the 

priority for a development strategy. Needless 

to say, anticorruption policies should be 

accompanied by an ethical perspective able 

to overcome private interests and public 

office bias. 

MBR: Which institutions do people 

perceive as most corrupt? 

ET: Alina Mungiu-Pippidi studied the 

perception on Governmental institutions 

and showed that all Members States have 

regressed in controlling corruption since 

Dr Enrico Tezza 

12

INTERVIEW OF THE MONTH 


"State capture 

is a situation 

where powerful 

individuals, 

institutions, 

companies or 

groups within or 

outside a country 

use corruption to 

influence a nation's 

policies to benefit 

their own private 

interests. 

they joined EU. She defines control of 

corruption as the capacity of governments 

to constrain corrupt behaviour in order to 

enforce individual integrity in public service 

and uphold a state free from the capture of 

particular interests. 

According to the "state capture" hypothesis, 

public institutions at large are perceived as 

most corrupt. State capture is a situation 

where powerful individuals, institutions, 

companies or groups within or outside 

a country use corruption to influence 

a nation's policies to benefit their own 

private interests. It is worth recalling the 

parliamentary speech of Italian Prime 

Minister Bettino Craxi since it provide 

evidence of what is called "systematic 

corruption": "What needs to say and which 

in any case everyone knows, is that the 

greater part of political funding is irregular 

or illegal. If the greater part of this is to be 

considered criminal pure and simple, then 

the greater part of the political system is 

a criminal system". The United Nations' 

Secretary-General Ban Ki-moon, pointed out 

that gauging perception is like measuring 

smoke rather than seeing the fire. 

The Oil-for-food scandal is a further example 

confirming the involvement of public 

institution even at international level. In 

addition, Deutsche Bank scandal on money 

laundering shows that financial institutions 

are not immune from corruption. 

MBR: Do you think that technology and 

artificial intelligence can find out which 

politicians are corrupt? 

ET: The new generation of anti-corruption 

policies are based on digital technologies 

and big data. 

In particular, Blockchain is the most potent 

tool against corruption by providing 

transparency through a decentralised system 

that records the sequence of transactions. 

It allows the full traceability of every 

transaction. According to Carlos Santiso, 

Blockchain is particularly suited to fight 

corruption in the registry of assets and the 

tracking of transactions such as procurement 

processes. By leveraging a shared and 

distributed database of ledgers, it eliminates 

the need for intermediaries, cutting red-tape 

and reducing discretionality. 

In 2015, Mark Walport, chief scientific 

adviser to the UK Government, presented a 

report on "Distributed Ledger Technology: 

beyond block chain" which highlights the 

application of block chain technology in 

government policy toward transparency 

and integrity. In the same line, an official 

of the Veneto Region, Marcello Zanovello, 

is studying the applicability of Blockchain 

against the misuse of public office. 

In conclusion, academic world and 

practitioners confirm that mainstreaming 

this technology will improve anti-corruption 

policy. 

MBR: Malta is the 46th least corrupt nation 

out of 175 countries, according to the 2017 

Corruption Perceptions Index reported by 

Transparency International. What are your 

comments? 

ET: European Northern Countries are 

perceived free from corruption when dealing 

with bribery, but when conflict of interest 

is considered, they result the most corrupt 

countries. Despite its prominence, the 

Corruption Perception Index has become 

increasingly controversial in recent years. 

Definition problems, perception bias, false 

accuracy, a flawed statistical model are 

prevalent weak factors. The mismatch 

between perception and experience 

undermines the credibility of survey on 

corruption based on perception. However, 

when the Maltese media highlights that 

corruption is the country's biggest challenge, 

one can conclude that corruption is "real" 

even in Malta. At the same time, the 

initiative of the Malta Federation of Liberal 

Profession on Professional ethics confirms 

the presence of economic actors moving 

toward a corruption free culture. MBR 

This was first published in The Malta 

Independent 

Dr Enrico Tezza co-author of a new book entitled Evaluating Corruption: Something Rotten Around the World 

André Camilleri, Production Manager, TMI 

Credits: The Malta Independent 


13


EDITOR’S CHOICE 

Laureato Perpetual Calendar GP 

exuding a strong, architectural presence. 

Its blue dial adorned with a Clous de Paris 

hobnail pattern, against which the white 

indications stand out in striking contrast, 

sets the final touch to this resolutely 

modern timepiece. 

its octagonal polished bezel inscribed in a 

circle: everything about this model reveals 

a quest for pleasing proportions and 

ergonomics. 

This approach to watch design has given 

rise to an intense ‘envelope’ with its own 

unique style, which both protects and 

contains functional components. This 

vision is identical to that of an architect. 

Here, the challenge is concentrated within 

the few cubic centimetres of the Laureato 

Perpetual Calendar, which one observes 

and experiences close up, directly on 

the skin. The stakes are all the higher 

given the numerous indications involved 

in a perpetual calendar, which raises 

the question of their readability, their 

adjustment as well as their ability to fit into 

the daily life of the watch wearer. MBR 

The Laureato collection, which remains as 

successful as ever, reinterprets the great 

watchmaking classics while remaining 

faithful to its contemporary spirit and sporty 

chic. To tackle the masterful complication 

represented by the perpetual calendar, 

Girard-Perregaux has designed a Laureato 

that is all about subtle positional shifts 

arranged in a dynamic equilibrium. Driven 

by a purpose-built automatic movement, 

and unique in its kind, the Laureato 

Perpetual Calendar combines intensity of 

style with the pleasure of daily wear. Simple 

to read and easy to adjust, it is the result of 

an ergonomic approach to operation and 

wearability pushed to its uttermost limits. 

Carved from a 42 mm diameter steel block, 

alternately polished and satin-finished with 

the characteristic care demonstrated by the 

Manufacture Girard-Perregaux, it is attached 

to the wrist with a bracelet of the same 

nature, finish and quality. Thus appearing 

in this unique, all-steel and asymmetrical 

configuration, the Laureato Perpetual 

Calendar asserts its status as a watch 

Nobly born 

Laureato was born under the finest 

auspices. Designed by a Milanese architect 

in the 1970s, it immediately established 

itself as an object of art, history and form, a 

watchmaking icon. The spirit of this creation 

is intact and continues to progress in the 

latest generation of Laureato, launched 

in 2016 and further enriched in 2018. Its 

metallic bracelet with alternating polished 

and satin-finish surfaces; its case featuring 

lugs seamlessly integrated into its design; 

Courtesy: Edwards Lowell Co. Ltd. 

14


CORPORATE INTERVIEW 

Leading with innovation 

By George Carol 

Founded in 2006, Saviour Camilleri Interior Design & architecture Ltd. & Camilleri Burlo- architects & designers is an Architecture 

and Interior Design firm. Saviour Camilleri, Managing Director and Kurt Camiller Burlo’, Architect and Civil Engineer, have 

designed many commercial and residential projects in Malta. MBR talks to them about their firm and some of their projects. 

mechanical and electrical and structural 

engineering. We also take care of design 

and build for our clients. We cover all types 

of projects ranging from hospitality, retail, 

commercial, residential, and entertainment, 

both in Malta and overseas. We have over 

45 years of experience in the field and we 

have been commissioned with about 1600 

projects to date. 

MBR: Have there been any recent 

achievements you would like mention? 

Saviour Camilleri and Kurt Camilleri Burlo' receiving their award from Dr Adrian Trevisan, CEO, Umana Medical 

MBR: Why did you decide to pursue a 

career in Interior design? What inspired 

you? 

SC: It was a natural progression really. It 

started when I discovered my artistic talent 

at a very young age and studied at the 

school of fine arts for seven years. My strong 

artistic capabilities just led me from one 

creative job to another such as carpentry, 

graphic design, film set design and others. 

The vast artistic experience gained backed 

up by a good knowledge of the trades, were 

a strong foundation to become a successful 

interior designer. 

MBR: How did you decide to establish your 

own firm? Could you tell us about Saviour 

Camilleri Interior Design Ltd.& Camilleri 

Burlo’ Architects? 

SC: My first interior design job consisted 

of designing a shop for a friend in 1978. 

The word just spread around the business 

community and I just moved on from one 

job to another until I was entrusted to design 

the Holiday Inn in the mid 80’s. That is when 

I decided to set up my own practice Saviour 

Camilleri Interior Design & Architecture 

Ltd. From then on I was entrusted to design 

numerous other international hotels such 

as the Maritim Hotel, Golden Tulip Vivaldi, 

Intercontinental Hotel as well as many 

commercial and residential projects like Go 

Mobile, Vodafone, Tony & Guy, Nicholson’s 

Supermarkets, Falzon Group Offices etc. 

While I managed the business, my son, 

Architect Kurt Camilleri Burlo’ followed 

my steps and graduated with a First Class 

Degree in Architecture & Civil Engineering 

from the University of Malta. He founded 

the architectural studio ‘Camilleri Burlo – 

architects’ merging my experience and my 

portfolio with his fresh and innovative ideas 

and resources. 

MBR: How could you define your design 

approach? 

KCB: Architecture is a profession that 

combines great amounts of passion and 

knowledge, fused with technology and 

arts. The Company’s philosophy is of ‘Total 

Design’, whereby nothing is left to chance; 

a good understanding of the client’s taste, 

"The Company’s 

philosophy is of 

‘Total Design’, 

whereby nothing is 

left to chance. 

creative designs, importance to the 

smallest of details, personal involvement, 

we create a completely unique project 

which ultimately satisfies the clients brief 

and budget. We go into a lot of detail 

on paper to avoid problems during the 

implementation phase. 

MBR: What type of projects does 

‘Saviour Camilleri Interior Design & 

architecture Ltd’ and ‘Camilleri Burlo’ 

Architects’ specialize in? What type of 

services do you offer to your clients? 

KCB: Our company offers a one-stop 

shop, according to the projects’ need 

for completion, successfully providing 

the client with services in the field of 

architecture, interior design, surveying, 

SC: The most recent achievement is 

receiving two great awards at the Malta’s 

Best in Business Awards gala evening 

last November, Best Creative Award, 

and also a Best Architecture and Interior 

Design Company. It’s of great satisfaction 

to be recognized. Other very important 

achievements to mention are: The design for 

the MITA data centre which was nominated 

among the World’s 15 most beautiful data 

centres in 2017, The Malta stand for the 

Shanghai Expo 2010, Din L-art Helwa Award 

for The restoration of the customs house in 

Pieta. 

MBR: What is coming up next for you? 

SC: We are proud to be commissioned to 

design the headquarters of a renowned 

telephony company, after already 

completing the rebrand of their retail 

outlets, an international supermarket, a 

factory, a 3-star hotel and various residential 

and commercial projects. MBR 

Editor’s Note 

Saviour Camilleri Interior Design & architecture 

Ltd. & Camilleri Burlo- architects & designers 

Saviour Camilleri has been at the leading edge 

in the field of interior design & architecture for 

the past 40 years and has been commissioned 

with about 1600 projects to date, satisfying 

clients’ requirements at lead timeframes. His son, 

architect Kurt Camilleri Burlo’ added innovation to 

the company when he introduced Camilleri Burlo’ 

architects & Designers, all under the same roof, 

and this merger, over the past years has given 

birth to a one-stop shop, successfully providing 

the client with years of experience in design and 

innovative cutting edge architectural, structural 

engineering & interior design. The buildings 

we produce go beyond the basic, incorporating 

extensive detail and functional aspects at the very 

early stages of design. The company’s philosophy 

is of ‘Total Design’ whereby nothing is left to 

chance. 


16

EU LAW 


Putting EU law into practice: The European 

Commission’s oversight responsibilities under 

Article 17(1) of the Treaty on European Union 

By Leo Brincat 

I 

The success of many European Union 

policies depends on Member States putting 

EU law into practice in their jurisdiction. The 

European Commission has an obligation 

under Article 17(1) of the Treaty on 

European Union to oversee that Member 

States apply EU law. This role of “guardian 

of the Treaties” is essential for ensuring the 

EU’s overall performance and accountability. 

The Commission’s oversight activities focus 

on managing the risk of potential breaches 

of EU law by Member States that may lead 

to formal infringement proceedings under 

Article 258 of the Treaty on the Functioning 

of the European Union (TFEU). 

II 

As the EU audit institution, our audits check 

whether Member States comply with EU law 

for the most part only where compliance 

with EU law is a condition for Member States 

receiving payments from the EU budget. 

We may also examine how the Commission 

performs and accounts for its oversight 

activities. In response to a request of the 

European Parliament, we decided to conduct 

a landscape review covering: 

• the main features of the EU’s legal 

landscape that make overseeing 

Member States’ application of EU law 

challenging; 

• the Commission’s objectives, priorities 

and resources related to its oversight 

activities; 

• the main processes the Commission 

uses to prevent, detect and correct 

Member States’ potential infringements 

of EU law; 

• the Commission’s arrangements 

for ensuring transparency about its 

oversight activities and their results; 

and 

• the contribution of public audit at 

national and EU level with respect to 

ensuring the application and oversight 

of EU law in Member States. 

Putting EU law into practice 

Putting EU law into practice is essential for 

delivering results for citizens and protecting 

their rights and freedoms. Member States 

must fulfil their obligations under EU law, 

including incorporating relevant EU legal 

acts into national law (“implementation”) 

as well as applying them in their jurisdiction 

(“application”)1. EU legal instruments are 

a key means by which the EU achieves its 

objectives and the rule of law is a key value 

of the EU2 that all Member States and EU 

institutions must uphold. 

EU laws apply directly or indirectly 

depending on the type of law. The Treaties, 

regulations and decisions become binding 

automatically throughout the EU on the date 

they enter into force, while Member States 

must incorporate EU directives into their 

national legislation by a fixed date before 

they are applied. In effect, Member States 

enjoy considerable discretion over how they 

implement and apply EU law. The European 

Commission (Commission) is responsible 

for overseeing the implementation and 

application of EU law by Member States 

(“compliance”), in accordance with Article 

17(1) of the Treaty on European Union 

(TEU). 

III 

The Commission aims to prevent, detect and 

correct Member States’ non-compliance 

with EU law. It does so by monitoring 

Member States’ application of EU law 

and taking action to promote and enforce 

compliance (“oversight activities”). The 

Commission’s oversight activities focus 

specifically on identifying and acting on 

cases of non-compliance that may lead to 

enforcement through the infringement 

procedure under Articles 258 and 260 of the 

Treaty on the Functioning of the European 

Union (TFEU) (“potential infringements”). 

A landscape review is not an audit. It 

presents descriptions and analyses based 

on publicly available information. This 

landscape review also includes information 

that participants in the study agreed to 

make publicly available for the purpose of 

the review. Our review involved analysis 

of data provided by the Commission on its 

oversight activities, a survey of the DGs, a 

survey of the Member States, interviews 

with key institutional stakeholders, and an 

examination of relevant audit reports of the 

ECA and Member States’ SAIs 

Landscape review team 

This landscape review was produced by 

Audit Chamber V – headed by ECA Member 

Lazaros S. Lazarou - which has a focus in the 

areas of financing and administering the 

Union. 

The review was led by ECA Member Leo 

Brincat, supported by Neil Kerr, Head of 

Private Office and Annette Farrugia, Private 

Office Attaché; Alberto Gasperoni, Principal 

Manager; James McQuade, Head of Task; 

Michael Spang, Attila Horvay-Kovacs and 

Jitka Benesova, Auditors. MBR 

From left to right: Annette Farrugia, Alberto Gasperoni, Leo Brincat, Neil Kerr, Jitka Benesova, 

James McQuade, Attila Horvay-Kovacs. 


17


CORPORATE SERVICES 

The 


Experience 

MBR talks with Darren Zarb, Managing Director of Dacoby Chauffeur Service, who 

dreamt of creating a company that stands out from the rest. Not because it’s loud and 

intrusive, but for the pleasant and hassle-free experience given to customer. 

Darren Zarb 

MBR: In a competitive industry, how do 

you maintain an edge over other luxury 

chauffeur drive services so you can fill 

seats while maintaining costs? 

DZ: The chauffeur industry has been growing 

and developing in the last few years and 

today, even more than ever before, it is 

very difficult to compete with competitors 

on a price basis. Moreover, our exclusive 

chauffeur service goes far beyond the 

normal cab services but is an experience 

in itself. We perceive our costs as an 

investment in our company - in fact our aim 

is not to drive costs down as most often 

than not it will have a negative impact on 

the quality delivered to our clients, but to 

have a return on the investments we make. 

If you wish to offer the best service, you 

need to source the best tools to do so - we 

continuously challenge ourselves to find the 

best technology in the industry in order to 

maximise the usage of our vehicles and offer 

the best just-in-time chauffeur service. By 

doing so, we have created our own unique 

competitive edge within the industry, which 

up until today have proved us to be an 

excellent recipe for success. 

MBR: Why is it so important for you to 

have the ‘wow factor’ in premium luxury 

driven vehicles? 

DZ: It is very simple. Why do you choose 

to buy a branded item over the next one? 

Our business is focused on providing an 

experience to clients who know what is the 

best, very often they have an impeccable 

eye for detail, so as explained before, you 

want to give your clients what they need, 

want and if possible even exceed their 

expectations. Sometimes a “Wow Factor” is 

not the car itself but the little details, which 

we have realised over the years make a huge 

difference such as; the bottle of premium 

water, the opening of the door with a smile 

on the chauffeur’s face, and many other 

things which have become a habit in our 

daily routines. We manage to achieve the 

wow factor, as you have put it, by offering 

a tailored service to each and every client 

hence, rather than catering for each client in 

the same way, we strive to get to know our 

clients and give them what they need and 

want before they even ask or point it out. 

That’s what makes Dacoby at the top of the 

chauffeur drive business in Malta, and what 

make us unique from other chauffeur driven 

companies. 

"we strive to get to know 

our clients and give 

them what they need 

and want before they 

even ask or point it out. 

MBR: Is it possible you might focus on 

offering discounted business class seats 

instead? 

DZ: Rather than discounted business class 

seats, we focus our energy on creating 

relationships with our clients. For example, 

all our clients get free upgrades, especially 

our corporate clients who we work with on a 

daily basis. Instead of discounting, we always 

strive to enhance the experience of our 

clients. Sometimes someone might book and 

E-Class but we go with our S-Class instead 

at no extra cost, just because it is simply 

available. Till now no one ever complained! 

MBR: Dacoby Chauffeur Services won the 

Malta’s Best in Business Best Customer 

Focus Award 2019, with the judges writing 

Dacoby as ’Best Ground Transportation 

Provider’. How did it feel when you found 

out you won, and what did it mean to your 

company? 

DZ: The feeling was surreal, there are times 

in your life when you just stop to look back 

at how far you have come, and that was one 

of those moments. After ten years in the 

business my team and I have never thought 

that we would have come so far and grew 

at the rate that we did, so it meant a lot for 

us. It gave us the extra motivation that we 

sometimes need to keep going. Honestly, it’s 

a big achievement not only for me but for 

the entire team to have been awarded such 

an achievement. 

MBR: What are you seeing as your biggest 

challenge in the next 12 months? 

DZ: As in every other business, the biggest 

challenge is to keep improving on the 

standard and service you have already 

achieved. Year after year we have always 

strived to keep on improving from the 

previous one, and to cautiously make the 

right step at the right time. This industry 

is very competitive and if you sprint rather 

than briskly walk you can find yourself in the 

deep end of the water without realising. 

At this point in time our main focus is to 

maintain consistency in providing the due 

attention to detail to all our clients just 

like when our fleet was made up of only 

two cars. The more you grow, the easier 

it is to lose track of consistent quality and 

maintaining a high standard expected by 

clients, so I think that, that is what we need 

to keep working hard for throughout this 

year. MBR 


Dacoby Chauffeur Service 

18

SHARE IDEAS 

HARNESS BUSINESS 

OPPORTUNITIES 

BUILD RELATIONSHIPS 

FULL-SERVICE FINANCIAL SERVICES PROVIDER, 

MULTILINGUAL INTERNATIONAL STAFF. 

SOLE MALTESE MEMBER OF PRIMEGLOBAL 

www.griffithsassoc.com 

+356 2738 3631/2 

Level 1, Casal Naxaro, Labour Avenue, Naxxar Malta 


19


TRANSPORT & LOGISTICS 

Constant Reinvention 


Kurt Camillieri, Managing Director, O & S Shipping, 

shares his vision with MBR, explaining the importance to 

continue doing what we his Company knows and does 

best- transport, logistics and agency services, and being 

capable to come up with new innovative product or 

services to meet new market demands. 

MBR: How would you describe O&S 

Shipping Ltd.’s vision and mission? Can you 

talk about the services provided by the 

company? 

KC: We are a relatively young organisation 

with our objectives and priorities right. 

In a very short time, the company has 

establishing itself as a local leader in yacht 

transport and as a logistics and maritime 

agency service provider in Malta. No matter 

if a client requires customs clearance, 

insurance, sea assistance or innovative 

marine products, our objective is to be their 

supplier of choice each and every time. 

We are committed to deliver solutions 

based on industry knowledge, experience, 

including a real understanding the needs and 

wants of our customers and principals, as 

well as providing an informal yet professional 

working environment that encourages and 

rewards creativity, insight team work and 

enthusiasm. 

MBR: Give us a few examples of cargoes 

that you have handled either with your 

base being in Malta or via Malta to other 

destinations. 

KC: We have handled over 51 yachts in 2018, 

but most notable were the Super Servant 

4 work in January and Eemslift Hendrika 

operation in May 2018. The Super Servant 4 

is no stranger to our seas, having last called 

Malta in 2016 to float out a Sunseeker 116. 

This time it was tasked with transporting an 

MCY 96 Flybridge Cruiser from Valletta to 

the Caribbean. In order to accomplish this, 

the Esmeralda of the Seas first had to be 

floated in the vessel to reach its ultimate 

"our objective is to 

be their supplier 

of choice each and 

every time. 

destination. O&S Shipping were once again 

asked to handle this very delicate task. We 

began by unlashing other yachts which were 

present on the deck of the Super Servant 

4 to prevent yachts from getting damaged 

once the vessel is submerged. This process 

was followed by the submerging of the 

deck and the stowing of the Esmeralda. A 

group of 12 Commercial divers followed 

the yacht and tied it securely in place, 

before the Super Servant 4 could emerge 

from water and come dry once again. A 

group of 18 riggers took over 12 hours to 

position additional sea fastening stands and 

lashings to secure the yachts on safely on 

deck to reach their final destinations in the 

Caribbean. 

The other job concerned the delivery of a 35 

meter, 150 ton princess motor yacht to our 

shores. Two of our principals joined forces 

and made this ambitious transport load 

happen. A 35-meter yacht weighing 150 tons 

was loaded from water in Southampton, 

UK, and discharged in Malta by the small 

and mighty Eemslift Hendrika. This ship 

has an overall length of 110 metres and a 

lifting capacity of two 150-ton deck cranes. 

It utilises a complex ballasting system to 

act as a counterweight during loading and 

discharging. The counterweight system 

works simultaneously with the ship's 

ballasting system. A professional loadmaster 

from Peters and May, with some of the best 

crew of Starclass yacht transport including 

ship’s master and chief were onboard with 

us to perform a textbook discharge. This 

delicate and complex task took 12 hours to 

complete. 

MBR: What distinguishes O&S Shipping 

from other freight forwarding and logistics 

company in Malta? 

I believe that we have a young but yet 

talented team with the right attitude and 

determination to make things happen. 

We take it personally and we attend each 

and every job we have. irrelevant whether 

it’s during day, night, weekends or public 

holiday we are always out there for our 

customers. We can also guarantee the 

same level of service and treatment to 

each and every customer as we operate 

under a strict code of conduct and quality 

management procedures. In fact, in our 

yearly independent survey performed by 

Step Enterprises 87% of our customers 

where satisfied with our services whilst 94.7 

% gave us excellent result when it came to 

customer experience. MBR 

Kurt Camillieri, Managing Director, O & S Shipping receiving award 


20

MBIBA INTERVIEW 


Experience & Innovation By George Carol 

Interview with Antoine Bonello, Managing Director of The Resin & Membrance Centre, 

Malta's premier waterproofing center 

MBR: What are the challenges faced 

when offering a complete waterproofing 

materials and solution in Malta? 

AB: Waterproofing is of utmost importance 

on our island, over 80% of the building 

problems are related in one way or another 

to water. Our Mediterranean climate is very 

harsh and subjects buildings to constant 

movements due to the sudden temperature 

changes. We always examine carefully 

each an every building prior to any type 

of waterproofing solution and this also 

includes its location and the elements it is 

subjected to. We put all the possibilities 

into our equations. This to ensure that 

the proposed waterproofing system is 

tailor made according to the needs to the 

building in question and to the benefit of our 

customers. We constantly dedicate a good 

share of our time in an ongoing research and 

combine our experience with innovation. 

This had made us leaders in our field of 

works and gave us the ability to adapt 

to the constant changes and challenges 

of the building Industry. We have been 

commissioned to waterproof what seemed 

to be the impossible and where many others 

have failed before. We have been able to 

waterproof important historic places and 

church domes, successfully protecting 

important paintings valued at millions of 

Euros. This included paintings by Guseppi 

Cali and Mattia Preti. Our determination 

to excel and the pride we put in our works 

has helped us to identify all the problems 

related to waterproofing and now we can 

easily overcome all challenges thanks to 

our professionalism and our NAICI range of 

professional Waterproofing materials. 

MBR: How do you view the market for 

resin membrane flooring and has there 

been any evaluation in production with 

rise in costs of input? 

AB: In today's world were the aesthetic 

factor is evermore playing an important 

role in our life, the concept of beauty has 

become the normality, therefore the need 

to impress and the benefits of a product 

must be at pair with each other. Gone are 

the days when something ugly is kept or 

applied, even if it is useful or playing an 

important part in protecting our house from 

the elements. Resin membranes are subject 

to constant developments, some of which 

came to life due to the need to replace old 

materials which nowadays are considered 

bad for health and the environment, like 

lead and asbestos. The need to replace 

these materials gave way to an infinite other 

materials to be studied and developed more. 

Resin and other materials like Polyurea and 

Polyurethane, which we at the Resin and 

Membrane Centre immediately identified 

their astonishing waterproofing properties 

and their ability to solve all the unthinkable 

problems, have made them a reality here 

in Malta. Quality has never been cheap 

and needless to say that there are costs 

involved to develop a product, but thanks 

to our policy not to wholesale our products 

to third parties, we have reduced the costs 

by far and this goes directly to the benefit 

of our customers. Our products can only 

be found at our exclusive showroom in 

Psaila Str - St Venera, where one can also 

get a professional advise and the best 

waterproofing material for his needs. 

MBR: The infrastructure construction 

segment, particularly waterproofing, has 

been witnessing an entry of a number of 

domestic and foreign individual players, 

resulting in severe and perhaps unfair 

competition. Please comment. 

AB: In the recent years we have experienced 

quite a flow of migration, with many of 

them employed in the construction Industry. 

Emigration is a reality whether we like it or 

not. Many of these foreigners think they 

can do as they please regardless of the law, 

resulting in unfair trading and low quality 

works. We as a company have been called 

many times to make good for badly carried 

out works. Their prices are so low that we 

think many of these people do not issue a 

VAT receipt or pay taxes. Unfortunately many 

people fall for the low price trap, resulting 

many times in unfair competition and 

badly carried out works. We as a company 

offer a minimum of ten years guarantee 

on all our products and works, and we are 

also affiliated with the Malta Professional 

Waterproofing and Resin Flooring 

Association, this to ensure all our customers 

of that each and every job is carried out at 

its best, plus guaranteed after sales service. 

We are always praised by our customers for 

the high quality work we do. Quality and 

expertise is our secret. 

MBR: There will be a huge EXPO being 

launched in Gozo end May. Why is it 

significant to participate and how has your 

recent award in Malta’s Best-in-Business 

Awards contributing to your presence in 

such a major trade fair? 

AB: Progress is nothing if it cant be shared. 

New technologies, ideas and application 

methods are only successful as long as the 

general public is informed about them. The 

EXPO is where both ends meet and business 

is created. We at the Resin and Membrane 

Centre firmly believe in these types of 

events, they give us the right exposure 

and the opportunity to give professional 

advice to all visitors on how to protect at 

best their homes. It is the place where ideas 

and innovations are discussed and brought 

to life for the benefit of the customer. Our 

ability in giving the right advice combined 

with pristine execution works made us the 

best on the islands. Now this opportunity 

will also be a reality for those living in Gozo, 

who will be able to visit our stand at the 

EXPO and meet us without the need of 

doing the journey to Malta. This hard work 

and dedication elevated us from the rest and 

made us winners for the third time in a row 

as best waterproofing company and product 

service and customer care at the Malta's 

Best in Business Awards. No matter how big 

or small the job is or if you wish to do-ityourself 

or applied by us at our showroom 

you will always find dedication and the right 

advice to succeed in protecting your home 

at its best. We are not just roofers we are 

the Resin and Membrane Centre. MBR 


Antoine Bonello, Managing Director of The Resin & Membrance Centre 


21


BOATS & YACHTING 

A business Imperative 


Oceanus Marine never believed rapid growth. Having restructured the company toward of 2018, Elio Desira, Managing 

Director, tells us that the Company is not planning to increase the number of employees in 2019, nevertheless this may 

change according to the demand, and having engaged two trainee surveyors, who hopefully will graduate by the end of 

2019, keeping the company ready for any future eventuality and increase in demand. 

MBR: Please talk to us about your role and 

responsibilities as MD for Oceanus Marine? 

ED: I direct and control the work and 

resources of the company and ensure the 

recruitment and retention of the required 

numbers of well-motivated, certified, and 

trained staff to ensure that it achieves 

its mission and objectives. I also conduct 

corporate and annual business planning, 

monitor progress against the plans to ensure 

that the company attains its objectives as 

cost-effectively and efficiently as possible. 

Besides providing guidance to the surveyors, 

to keep them aware of developments 

within the industry and ensure that the 

appropriate policies are developed to meet 

the company’s mission and objectives, I 

must ensure these comply with all relevant 

statutory and other regulations. Today, I also 

establish and maintain effective formal and 

informal links with major customers, and 

agencies, and to ensure that the company is 

providing the appropriate range and quality 

of services, monitor the implementation 

of the annual budget to ensure that 

budget targets are met, that revenue flows 

are maximised and that fixed costs are 

minimised. Finally, I maintain an effective 

marketing and public relations strategy to 

promote services and image of the company 

in the wider community, overseeing survey 

reports and certificates randomly, and direct 

attendance and reporting of marine claims. 

Oceanus Marine is a Member Of 

MBR: What are the key objectives of 

Oceanus Marine for 2019? 

ED: Our main focus in these past years was 

mainly the pleasure and commercial yachts 

and superyachts. 

Our main focus in 2019 will be the shipping 

sector – the main objective is to increase 

the number of surveys on vessels by at 

least 25%. This does not mean that we 

shall reduce the surveys and services to the 

yachting sector, not at all, throughout the 

past years we have trained surveyors and 

thus today we have dedicated surveyors for 

the yachting sector. Our plans are also to 

continue increasing the amount of surveys 

in this sector as well. Oceanus Marine has 

in 2018 restructured and implemented 

new company policies. New qualified and 

experienced surveyors have been engaged 

for both the yachting and shipping sector. 

MBR: What role does digitisation have in 

marine and yacht surveys? 

ED: Oceanus Marine Ltd is leading surveying 

company. The digital future innovation and 

applying advanced inspection technologies is 

one of the new challenges for 2019. The aim 

is to cut down the paperwork and the huge 

amount of filing which is actually creating a 

storage problem. The company is investing 

in tablets for each surveyor enabling 

them to conduct the surveyors digitally 

immediately on site, without having to use 

any hard copies. This technology can deliver 

significant enhancements in the efficacy 

of surveys while being less intrusive to the 

asset, decreasing asset operational down 

time and operational expenses. 

MBR: What are the main actions the 

maritime sector should implement 

to improve in the boats and yachting 

industry? 

ED: Pleasure yachts: We have seen a 

substantial increase in pleasure yachts in 

these last years, locally. Although we have 

surveyed several pleasure yachts which were 

found to be maintained as per builder’s 

requirements and recommendations, a large 

number of pleasure yachts were not found 

to be in conformity. 

However more than the above, the issue of 

having a black water tank and a sludge tank 

should now be a must. Pumping out sewage 

and contaminated bilge water is illegal, and 

installation of retention tanks should be 

encouraged for all boats and yachts which 

are over 6 meters LOA and are fitted with a 

marine toilet and with inboard engines. 

Garbage retention and waste disposing is 

another serious matter. Environment, our 

beautiful seas, and bays should be well taken 

care of immediately before it is too late. MBR 

Credit: George Carol 

Oceanus Marine are Appointed Surveyors / Inspectors for: 

22



PROVIDING PLEASANT LIFESTYLES SINCE 1982 

www.maltabusinessreview.net 23 

(+356) 2141 9787 ∙ MOSTA ROAD, LIJA, LJA 9010, MALTA ∙ WWW.FRAMEGRIP.COM


DEBATE 

You Are Not a Robotic Machine, and Here’s Why 

By Deepak Chopra, MD, Rudolph E. Tanzi, PhD, and P. Murali Doraiswamy, MBBS 

Deepak Chopra MD (official) Influencer 

There's a disturbing trend in science to try 

and prove that human beings are machines, 

and where this was once a metaphor, it is 

being taken more and more literally. We are 

told that a brain hormone is responsible 

for falling in love or a mother's affection for 

her newborn baby. Brain areas that light up 

on an fMRI scan supposedly indicate that 

a person is depressed or prone to criminal 

behavior and much else. Besides being brain 

puppets, we are supposed to believe that 

our genes program us in powerful ways, to 

the point that "bad" genes doom a person 

to a host of problems from schizophrenia to 

Alzheimer's. 

There needs to be a clear rebuff of this 

notion that human beings are mechanisms, 

and the fact that science has a wealth of 

findings about both genes and the brain 

doesn't make the notion any more valid. The 

general public isn't aware, for example, that 

only 5% of disease-related genetic mutations 

are fully penetrant, which means that having 

the mutation will definitely cause a given 

problem. The other 95% of genes raise risk 

factors and in complex ways interact with 

other genes. 

The public is still stuck on a misconception 

that a single gene like "the gay gene" or 

"the selfishness gene" exists and creates an 

irresistible tendency. This misconception 

was obliterated in genetics when the human 

genome was mapped. The current picture 

of DNA is almost the opposite of the public's 

wrong image. DNA isn't fixed; it is fluid and 

dynamic, interacting with the outside world, 

a person's thoughts, and behavior, and 

various mechanisms in the cell that regulate 

how much activity a gene will express. 

The notion that your genes run your life is 

ingrained even among educated people, 

so it is eye-opening to review a recent 

experiment just published in the Dec. 10 

issue of Nature: Human Behavior (the 

abstract can be read here ). Experimenters at 

the psychology department of Stanford took 

two groups of subjects and tested them for 

two genes, one associated with higher risk of 

becoming obese, the other with higher risk 

of performing badly in physical exercise. 

To keep the story brief, I'll focus on the 

obesity gene. The subjects ate a meal and 

afterwards were asked how full they felt; in 

addition, their blood was tested for levels 

of leptin, the hormone associated with 

feeling full after a meal. The results were 

about the same for people genetically prone 

to obesity as those who weren't. The next 

week the same group returned and ate 

the same meal, but with a difference. Half 

the group was told that they had the gene 

that protects someone from risk for obesity 

while the other group was told they had the 

higher risk version of the gene. 

To the surprise of researchers there was an 

immediate and dramatic effect. Simply by 

being told that they had the protective gene, 

subjects showed a blood level of leptin two 

and a half times higher than before. The 

group that was told they didn't have the 

protective gene didn't change from their 

earlier results. What this result indicated 

is that simply being told of a genetic risk 

causes people to exhibit the physiology 

associated with the risk. What they believed 

to be true overrode their actual genetic 

predisposition, because in some cases the 

people who thought they were genetically 

protected, or vice versa, actually weren't. 

The same dramatic results occurred in the 

exercise experiment. People who were 

told that they had a gene that produced 

poor results from exercise displayed the 

cardiovascular and respiratory signs that 

such a gene is supposed to produce, even 

though they didn't have the gene. 

If your physiology produces genetic effects 

simply by hearing that you have a certain 

gene, the myth of genes controlling our lives 

is seriously challenged. It’s not that genetic 

programming is irrelevant (for the full 

picture, refer to the book Super Genes that 

Deepak co-wrote with Harvard geneticist 

Rudy Tanzi), the reality is as complex as 

human life itself. Genes belong to the host 

of causes and influences that affect us. How 

strongly they affect any given person is 

impossible to predict (leaving aside the small 

percentage of fully penetrant genes), and in 

every area of behavior and health there is 

wwide latitude for personal choice. 

Given a simple either/or choice, see yourself 

as a free agent capable of conscious change 

rather than a robot machine run by genes 

and brain cells. Life is rarely as simple as 

either/or, which is true here as well. But 

despite the public image fostered by popular 

science articles, it's not true that a human 

being is a machine run by fixed mechanical 

processes beyond our control. Far closer to 

the truth is the view that we are conscious 

agents whose potential for creativity and 

change is unlimited. 

Editor’s Notes 

Deepak Chopra MD, FACP, founder of The Chopra 

Foundation and co-founder of The Chopra Center 

for Wellbeing, is a world-renowned pioneer in 

integrative medicine and personal transformation, 

and is Board Certified in Internal Medicine, 

Endocrinology and Metabolism. He is a Fellow 

of the American College of Physicians and a 

member of the American Association of Clinical 

Endocrinologists. Chopra is the author of more 

than 85 books translated into over 43 languages, 

including numerous New York Times bestsellers. 

His latest books are The Healing Self co-authored 

with Rudy Tanzi, Ph.D. and Quantum Healing 

(Revised and Updated): Exploring the Frontiers of 

Mind/Body Medicine. www.deepakchopra.com 

Rudolph E. Tanzi, Ph.D. is the Joseph P. and Rose 

F. Kennedy Professor of Neurology at Harvard 

University and Vice Chair of Neurology at Mass. 

General Hospital. Dr. Tanzi is the co-author with 

Deepak Chopra of the New York Times bestseller, 

Super Brain, and an internationally acclaimed 

expert on Alzheimer disease. He was included 

in TIME Magazine's "TIME 100 Most Influential 

People in the World" 

P. Murali Doraiswamy MBBS, FRCP is a leading 

physician and brain scientist at Duke University 

Health System where he is a Professor of 

Psychiatry and Behavioral Sciences, as well as a 

member of the Duke Institute for Brain Sciences. 

Murali is also a member of the Duke Center for 

the Study of Aging and Human Development 

and an affiliate of the Duke Center for Applied 

Genomics and Precision Medicine. He is an 

advisor to leading businesses, advocacy groups 

and government agencies, and serves as the 

Co-Chair of the World Economic Forum’s Global 

Future Council on Neurotechnology. MBR 

Credit: LinkedIn 

24


ATTARD ADVERT TO BE INSERTED 


25


SPECIAL FEATURE: EESC SEMINAR FOR JOURNALISTS 

rEUnaissance – Dare a sustainable Europe 

Special Feature 


Taking office in April 2018, President 

Luca Jahier has launched an agenda 

for change based on three priorities: 

sustainable development, peace and 

culture. Articulating his workprogramme 

on those priorities, Jahier called for a new 

Renaissance, a vast and powerful humanistic 

movement that would allow the EU to 

bring to fruition the new transformative 

revolutions of the 21st century. 

The philosopher Aristotle once declared 

that ‘Hope is a waking dream’. Europe 

was built on hope, and it should continue 

to reinvent itself on that premise. During 

my term in office, I will strive to mobilise 

organised civil society to take on a strong 

civic engagement for our sustainable 

European future. We have no time to waste: 

We need to unleash the energy of this 

common dream and work for a re-energised 

European Union. I would not presume to 

provide an exhaustive answer over the 

next two and a half years, but I will work 

relentlessly to forge unity, dynamism and a 

new direction in the EU. I will fight against 

the polarisation of our societies, against the 

increasing nationalist and populist trends 

and against a shrinking civic space, which 

are threatening our own democratic values. 

Since the 1950s, European integration has 

been pursued with great success. After 

centuries of discord, war and constantly 

shifting frontiers displacing populations, 

the European project has made it possible 

to establish peace, security, prosperity and 

solidarity, though much still remains to be 

done. In recent years, consensus has been 

reached on key joint initiatives such as the 

European Pillar of Social Rights and the EU 

Defence Cooperation Pact. That is not to say 

that we should be complacent. There is a lot 

of uncertainty on the horizon, both within 

the EU and externally. 

The role of the EESC in this positive 

rEUnaissance Centralisation of power in 

the executive, politicisation of the judiciary, 

attacks on media independence and lack 

of trust in the traditional political parties 

are just some of the symptoms of the 

current widespread crisis of democracy. 

It is no exaggeration to say that European 

democracy is experiencing its biggest 

setback since the 1930s and that traditional 

models of participation seem ill-equipped 

to cope with the acceleration of change. 

Traditionally regarded as the backbone 

of participatory democracy, civil society 

organisations are also changing and need 

to look for innovative ways to improve civil 

dialogue so as to ensure it is better suited 

to the conditions of the 21st century. 

This is essential if they wish to continue 

to influence decision-making processes 

in a meaningful manner, both at national 

and European level. Our committee has 

recently celebrated its 60th anniversary. 

Our achievements over the past 60 years 

are the foundation for the future of a strong 

EESC – and thus a strong EU. We must 

not rest comfortably on our laurels. We 

can only be true to ourselves if we try our 

very best to fulfil the duty inherited from 

our founders: to be the voice of organised 

civil society and to assist EU institutions in 

their crucial work to create a sustainable 

Europe. We will be able to fulfil our 

responsibilities if we cooperate and stand 

strong and united: EESC Groups, Sections 

and the Administration together. We must 

improve our avenues of communication 

and reinforce ‘competition’ in the original 

sense of the word – petere cum – to be 

more focused and deliver strategic actions, 

always adapting our methods and internal 

instruments accordingly. Our actions must 

be decisive and visionary. Let us be inspired 

by the spirit of ’58, and create a new 

narrative of hope. Let us drive a second 

European renaissance together, in which 

we once again trust that we are indeed the 

protagonists of our present and future. We 

have the opportunity to give a new impulse 

to European civil society engagement. Let’s 

do it! 

our Europe, Your Say! (YEYS) is the annual 

youth event of the EESC. It started in 2010 

with the goal of connecting very young 

people with the European Union. Every year, 

16-18 year old pupils from all EU Member 

States and from the candidate countries 

come to Brussels for two days and work 

together in order to draw up resolutions 

which will then be passed to the EU 

institutions. These resolutions contain their 

ideas, proposals and hopes for their future 

as European citizens. All secondary schools 

in Europe can apply and send three pupils 

to participate in YEYS: next year it could be 

your school! MBR 

26


2018 EESC Civil Society 

Prize - winners announced 

Rewarding excellence in civil society initiatives 


About the Prize 

The EESC is pleased to announce the five 

winners of the 10th edition of the Civil 

Society Prize, which rewards initiatives 

aimed at raising awareness of the multiple 

layers and richness of European identities, 

exploiting the full potential of Europe's 

cultural wealth, facilitating access to 

European cultural heritage and promoting 

European values. 

An evaluation panel composed of ten 

experts chose the winners among the 150 

applications received from 27 Member 

States. The work of the panel was very 

challenging and rewarding, considering the 

high level and quality of the applications. 

The prize awards ceremony took place on 

13 December 2018 during the EESC plenary 

session and MBR Publications Editor Martin 

Vella was invited to attend this ceremony. 

The first prize, of a value of 14.000 EUR, 

went to Tastes of Danube – Bread Connects 

(Germany), a project which uses the topic 

of bread as intangible cultural heritage that 

unites European people in their diversity. 

The other prizes, of a value of 9.000 EUR 

each, went to: 

Vice President Isabel Cano announcing the awards 

2nd prize: SWANS initiative (Germany), 

which organises career and leadership 

seminars for top female university students 

from immigrant families and for women of 

colour, thus contributing to empowering 

this group of women who are often 

discriminated against. 

3rd prize: Eco-Museum by the social 

cooperative Aria Nuova (Italy), an initiative 

which helps mental health patients from 

residential units to gain new insights into 

art and culture, thus asserting the universal 

right to culture. 

4th prize: Safe Passage (UK), which opens 

up safe and legal routes for refugee children 

to places where they can start a new life and 

builds public support for child refugees. 

5th prize: Balkans Beyond Borders short 

film festival (Greece), which uses art as 

an empowering force for overcoming 

differences embedded in the Balkan region's 

history. 

The EESC warmly congratulates the winners. 

The 2018 prize will reward innovative 

initiatives carried out by civil society 

organisations and/or individuals on the 

territory of the EU and aimed at raising 

awareness of the multiple layers and 

richness of European identities, exploiting 

the full potential of Europe's cultural 

wealth, facilitating access to European 

cultural heritage and promoting European 

values (respect for human dignity and 

human rights, freedom, democracy, 

equality and the rule of law). The aim of 

the Civil Society Prize, which is awarded 

annually, is to reward and encourage 

tangible initiatives and achievements by 

civil society organisations and/or individuals 

that have made a significant contribution 

to promoting European identity and 

integration. Its overall objective is to raise 

awareness of the contribution that civil 

society organisations and/or individuals can 

make to the creation of a European identity 

and citizenship in a way that underpins the 

common values that shore up European 

integration. 

The European Economic and Social 

Committee (EESC) is the voice of organised 

civil society in Europe. 

Find out more about its role and structure at 

http://www.eesc.europa.eu/en/about MBR 

Credits: EESC/GOPA/PO 

Winners Swans Initiative from Germany 

Greek Winner Balkans Beyond Borders 


27



Member states jeopardising the 

rule of law will risk losing EU funds 


Frans Timmermans 

Presentation of the conclusions of the 

European Commission's high-level multistakeholder 

platform and debate on 

Towards a Sustainable Europe by 2030, 

with Frans Timmermans, First Vice-President 

of the European Commission 

• New tool to protect EU budget and 

uphold EU values 

• Suspension or reduction of payments 

• Parliament and EU ministers may lock 

or unlock funding 

• Protection of final beneficiaries 

like researchers or civil society 

organisations 

Governments interfering with courts or 

going easy on fraud and corruption will 

risk being stripped of EU funds, according 

to a draft law endorsed in committee on 

Thursday. 

Assisted by a panel of independent experts, 

the EU Commission would be tasked with 

establishing “generalised deficiencies as 

regards the rule of law” and decide on 

measures that could include suspending EU 

budget payments or reducing pre-financing. 

The decision would ultimately only be 

implemented once approved by Parliament 

and Council. Once the member state 

remedies the deficits identified by the EU 

Commission, Parliament and EU ministers 

could unlock the funds. 

Independent experts to assist the 

Commission 

The European Commission may establish 

that the rule of law is under threat if one or 

more of the following are undermined: 

• proper functioning of the authorities 

of the member state implementing the 

EU budget; 

• proper functioning of the authorities 

carrying out financial control; 

• proper investigation of fraud - including 

tax fraud -, corruption or other 

breaches affecting the implementation 

of the EU budget; 

• effective judicial review by 

independent courts; 

• recovery of funds unduly paid; 

• preventing and penalising tax evasion 

and tax competition; 

• cooperation with the European Anti- 

Fraud Office and, if applicable, the 

European Public Prosecutors Office. 

To assist the Commission, a panel of 

independent experts in constitutional law 

and financial matters, comprising one expert 

appointed by the national parliament of 

each member state and five named by the 

European Parliament, would annually assess 

the situation in all member states and make 

a public summary of its findings. 

Protecting final beneficiaries 

Depending on the scope of the 

shortcomings and the budget management 

procedure, the Commission can decide on 

one or several measures, including: 

• suspending commitments, 

• interrupting payment deadlines, 

• reducing pre-financing and 

• suspending payments. 

Unless stated otherwise in the decision, the 

government would still have to implement 

the respective programme or fund and 

make payments to final beneficiaries, like 

researchers or civil society organisations. 

The Commission would have to assist the 

beneficiaries and strive to make sure they 

receive the due amounts. 

Along with deciding on the measures, the 

Commission would submit a proposal to the 

Parliament and the Council to transfer an 

amount matching the value of the proposed 

measures to the budgetary reserve. The 

decision would take effect after four weeks, 

unless Parliament, acting by majority of 

votes cast, or Council, acting by qualified 

majority, amend or reject it. Once the 

Commission establishes that the deficits 

have been lifted, the locked amount would 

be unfrozen using the same procedure. 

Quotes 

Committee on Budgets rapporteur Eider 

Gardiazabal Rubial (S&D, ESP) said: “The 

respect of rule of law and all European 

Union values are core principles upon 

which we built the European project. 

No government can violate those values 

without suffering the consequences.” 

Budgetary Control Committee rapporteur 

Petri Sarvamaa (EPP, FIN) said: “"Proper 

implementation of sound financial 

management can only be expected from 

governance and judicial systems that 

respect the rule of law. A government 

inflicting this principle should not be 

allowed to implement the EU budget – the 

European taxpayers' money – as they wish. 

If the judicial and governance systems of 

a Member State cannot be trusted, why 

should we entrust them with the common 

EU budget?” 

“The most important aspect of this 

mechanism is protecting the final 

beneficiaries – in our model, this is 

strengthened as compared to the original 

Commission proposal. We have also 

included the European Parliament in 

the decision-making procedure, thus 

strengthening the democratic accountability 

of any measures taken," he added. 

Next Steps 

The Budgetary Control Committee and the 

Budgets Committee MEPs endorsed the 

rules by 43 votes to 9 with 3 abstentions. 

Once the full House has voted, MEPs will 

be ready to enter negotiations on the final 

wording of the regulation with the EU 

ministers, which have not adopted their 

position yet. MBR 

Background 

The proposal for the regulation “On the 

protection of the Union’s budget in case 

of generalised deficiencies as regards the 

rule of law in the Member States” is an 

integral part of the EU’s long-term budget 

package, the 2021-2027 Multiannual 

Financial Framework. Concerns have also 

been raised as regards the new media law. 

The rule of law, as defined in our Rule of 

Law Framework, requires the respect for 

democracy and fundamental rights. Media 

freedom and pluralism are also closely 

connected with fundamental rights, in 

particular the freedom of expression. This is 

why the Commission considers it necessary 

to assess this law in the light of the rule of 

law. The European Union is founded on a 

common set of values enshrined in Article 

2 of the Treaty on European Union, which 

include in particular the respect for the rule 

of law. Mutual trust among EU Member 

States and their respective legal systems 

depends on the confidence that the rule of 

law is observed in all Member States. When 

national rule of law safeguards seems to 

come under threat, the EU needs to act. 

Credit: Janis Krastins/EP/PO 

28


"The past is a good teacher but 

not a destination for the future" 


companies pay their taxes where they make 

their profits. This must become a principle, 

together with the creation of a tax base that 

we can all agree upon - then tax havens will 

disappear," the Commissioner argued. 

The EU has limited competences on social 

issues but huge political scope to urge the 

Member States to work on the social pillar 

and explain, for instance, that collective 

bargaining was an essential element of the 

European social model and for safeguarding 

the rights of all employers and employees. 

"Unfortunately, with growing inequality, too 

many people are following the backwardlooking 

path, but while the past is a good 

teacher it cannot be the destination for the 

future," he concluded, ending with a Jean 

Jaurès quote "It is by flowing to the sea that 

a river stays true to its source." 

First EC Vice-President Frans Timmermans 

speaks on the rule of law and a sustainable 

Europe at the EESC's last plenary in 2018 

"We need a swift change to a sustainable 

Europe, and to achieve it the support of 

local and regional authorities and civil 

societies is crucial," said EESC president 

Luca Jahier at the outset of a debate with 

First Vice-President Frans Timmermans on 

sustainability and the rule of law during the 

EESC's December plenary. "We need to dare 

a new future for Europe, or as we call it a 

rEUnaissance. In order to have the support 

of our citizens, it is crucial that we focus on 

opportunities rather than new liabilities for 

our citizens," Mr Jahier added. 

The EU is based on the rule of law 

In his speech, Mr Timmermans noted that 

the rule of law was not "a sort of luxury" 

but the very foundation for the existence 

of the European Union. He warned against 

setbacks not only outside Europe, but also 

within the European Union. "We can see 

autocratic tendencies where democracy 

is used against the rule of law, where 

governments who achieved a majority in the 

last elections use this majority for instance 

in order to go against an independent 

justice", Mr Timmerman said, stressing that 

democracy was a "day-to-day-thing" and 

could not be reduced to the issue of voting. 

He condemned Hungary's recent decision 

to let employees work 400 hours overtime 

a year, without having involved trade unions 

in this decision, and was also worried about 

Poland's attempt to forbid its lawyers to 

seek guidance from the European Court of 

Justice when there was doubt. 

Involvement of civil society in the 

transition to a sustainable Europe 

With regard to sustainability, Mr 

Timmermans referred to the Commission's 

reflection paper which would be ready in 

mid-January, underlining that there was 

only one way forward - which was the way 

towards a sustainable society. He thanked 

the Committee for its remarkable role in the 

multi-stakeholder platform, where the EESC 

acted as a bridge builder and which could be 

an example for future involvement of civil 

society, for instance in platforms on energy 

transition, plastic, taxation, social protection 

inequalities – where the dialogue needs 

to be strengthened. "We have reached 

success and good consensus; however the 

work is not done yet," Mr Timmermans 

concluded. 

"We can see autocratic tendencies 

where democracy is used against 

the rule of law, where governments 

who achieved a majority in the 

last elections use this majority for 

instance in order to go against an 

independent justice. 

Taxation and the social pillar – the main 

instruments for social sustainability 

"We also need to include social 

sustainability", Mr Timmermans added. 

The gilets jaunes protests were the voice of 

people who felt they were being squeezed. 

"Inequality has increased in nearly all 

Member States. We must care about the 

people and this can only be done with the 

active participation of civil society." Taxation 

and the social pillar were two important 

instruments. "We must make taxation policy 

a highly political issue. It cannot be that 

every little shop, every pub pays its taxes 

and the big enterprises don't. The next 

Commission will need to have a precise 

programme that ensures that these big 

In his statement, Arno Metzler, president 

of the Diversity Europe group, urged the 

Vice-president to ensure closer cooperation: 

"Let us, the EC and EESC, work more 

closely together. The European institutions 

in general need much more structured 

collaboration. We should definitely 

cooperate more closely on fighting the 

upsurge of populism and promoting the 

rule of law and fundamental rights in our 

Member States." 

Gabi Bischoff, president of the EESC's 

workers' group, referred in her statement 

to SDG No 10 whose implementation was 

crucial. She argued that "For us as the 

workers' group, the fight against inequality 

has priority, but what we are seeing now 

is growing inequality within and between 

countries", blaming the Commission 

for having failed to address this issue 

successfully. 

For group I, Tellervo Kylä-Harakka-Ruonala 

emphasised that "sustainable development 

is not a zero-sum game. We need to seek 

measures that create economic prosperity, 

social welfare and environmental benefits 

simultaneously. The EU needs to be a 

forerunner, and champion for a favourable 

business environment to innovate, invest 

and trade in sustainable solutions." 

In their statements, members called for an 

overarching strategy for the implementation 

of the Sustainable Development Goals 

(SDGs) which was still missing, and 

stressed that it must be inclusive, involving 

businesses, civil society organisations and 

citizens. Social and environmental justice 

must go hand in hand. With regard to 

obvious set-backs concerning the rule 

of law, they called for a more proactive 

approach and better support from the 

Commission where civil society's rights were 

under threat. MBR 

Credits: EESC/GOPA/PO 


29


PLAYBOOK’S QUIZ & TOP 10 MOMENTS OF 2018 

PLAYBOOK QUIZ 

Here are 10 questions off the news of 2018. Scroll all the 

way down for the answers. 

7. In his first phone conversation with reelected Russian 

leader Vladimir Putin, Donald Trump was reportedly 

handed a handwritten note in all caps saying “DO NOT 

CONGRATULATE.” What was the first thing Trump did? 

a) Congratulate Putin b) Do a comedy Russian accent c) 

Thank Putin for all the election help 

POLITICO 

1. Annegret Kramp-Karrenbauer is the new leader of the 

German Christian Democrats, but how many points is her 

name worth in Scrabble? (The German version, no double 

or triple scores.) 

a) 34 b) 38 c) 40 

2. According to U.K. government figures, how many hours 

did former Brexit Secretary David Davis spend in talks 

with his opposite number Michel Barnier in the first half 

of 2018? 

a) 4 b) 7 c) 11 

3. How tall is the spire of Salisbury Cathedral? (No cheating 

and asking a Russian tourist.) 

a) 99m b) 112m c) 123m 

4. Viktor Orbán is famously hostile to outsiders, but which 

animal did the Hungarian prime minister adopt this year? 

a) Hippopotamus b) Giraffe c) Rhinoceros 

5. In June, Jacinda Ardern, prime minister of New Zealand, 

had a daughter. What’s her name? 

a) Olivia Whai b) Neve Te Aroha c) Isla Ngawari 

6. Emmanuel Macron is about as popular in France as a 

poorly made orange sauce. But by how many percentage 

points did his popularity fall in 2018? (Using figures from 

pollsters BVA.) 

a) 20 b) 25 c) 29 

8. How many of the 28 heads of state or government 

who attended the EU summit in March were still there at 

the December summit (even if clinging on in charge of a 

caretaker government)? 

a) 22 b) 25 c) 27 

9. What should be closed by 9 p.m., according to Italy’s 

Matteo Salvini? 

a) Migrant detention centers b) Little ethnic shops c) Train 

stations 

10. Theresa May danced her way on to the stage of the 

Conservative Party conference to which song? 

a) “Dancing Queen” b) “Dance The Night Away” c) 

“Macarena” 

PLAYBOOK’S TOP 10 

MOMENTS OF 2018 

1. A DIFFERENT KIND OF POLITICAL PRESIDENCY: “Romania 

is technically well-prepared for the presidency of the 

Council starting in January — thanks also to the active 

support of the European Commission,” Jean-Claude 

Juncker, the latter institution’s president, declared in a 

Welt am Sonntag interview over the weekend. “I believe, 

however, that the government in Bucharest has not yet 

fully understood what it means to take chair over the EU 

member states. For prudent negotiations, you also need a 

readiness to listen to others and the firm will to put your 

own wishes aside. I have some doubts there.” 

It was almost as if he was also talking about the outgoing 

Austrian presidency. “The Austrian EU presidency’s 

priorities include of course moves to prevent migration 

happening at all,” Playbook wrote last month, referring to 

Chancellor Sebastian Kurz’s decision to pull his country out 

of the U.N. global migration compact in order to “defend 

national sovereignty.” We continued: “But, as a rather 

small — no offense intended — country, agreeing with 

the rest of the world, including countries where people 

migrating to Europe 

come from, on common goal posts to tackle the issue? Or 

even pursuing ‘evidence-based policies’? … Heavens, no.” 

Bottom line: Juncker promised a “political Commission.” 

Following his lead, Austria delivered a political Council 

presidency — as in it pursued its own agenda, whether that 

was on behalf of the EU … or not. 

**A message from POLITICO’s 20th EU Studies Fair: Looking 

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Studies Fair offers you a unique platform to meet with 

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and postgraduate programs in EU Studies, International 

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2. MAY’S MOMENT OF RECKONING: At a press conference 

in Brussels on December 14, Theresa May told reporters 

that EU leaders had promised to hold further discussions 

on how to resolve the impasse over her Brexit deal in the 

coming days and weeks. Earlier that Friday, “May gathered 

a small group of EU super-influencers,” Playbook reported. 

By PAUL DALLISON with ZOYA SHEFTALOVICH I 

European Council resident Donald Tusk, Jean-Claude 

Juncker, German Chancellor Angela Merkel, French 

President Emmanuel Macron and Dutch Prime Minister 

Mark Rutte “quizzed May on the one question she hadn’t 

been able to answer before: How exactly would she 

use the outcome of the summit to get the Withdrawal 

Agreement through parliament back home?” 

‘There was no plan,’ said one diplomat. The EU’s most 

powerful people learned something anyway: May told 

them her parliament “doesn’t trust the EU.” 

That was perhaps the moment EU leaders decided there 

was little reason for them to trust that if they gave May 

the assurances she wanted, she wouldn’t just come 

back asking for more in January. Tusk said in his own 

final presser: “I have no mandate to organize any further 

negotiations.” 

3. MACRON’S HUMBLEST MOMENT: In what came close 

to an apology, Emmanuel Macron, in a televised speech to 

la Nation, acknowledged he had “offended some of you,” 

didn’t react “quickly enough” to the Yellow Jackets protests 

and “sometimes I may have given you the impression that I 

had other priorities.” 

That was on December 10, weeks after the Gilets Jaunes 

started camping out on roundabouts across the country, 

marching through France’s bigger cities, and a few days 

after the movement got violent, assaulting a national 

symbol — Paris’ Arc de Triomphe. 

Social or green? Macron, the counterweight to U.S. 

President Donald Trump on global climate policies, gave 

in to the powerful social movement and at the end of this 

rollercoaster year, now finds himself stuck between a rock 

and a hard place. (The past few months, though, having 

been nothing but a speedy downhill ride in the polls.) 

At stake: His European credibility as a reformer, his 

credentials as a green champion, his swagger as the fresh 

force in French politics — and all just months ahead of the 

EU election, his first electoral test since his 2017 triumph. 

Bottom line: Don’t encroach on people’s social sensitivities. 

It was petrol prices that sparked protests in France; in 

Hungary, it was less Prime Minister Viktor Orbán’s illiberal 

turn than a new law that would force employees to put in 

free overtime. 

4. WHEN THE GREEN WAVE AROSE: “Glance casually at 

the election results in Bavaria, in Luxembourg, in Belgium’s 

communes, and you’ll find a Green wave engulfing the 

center-left of the political spectrum. Look a bit closer, and 

you’ll see the traditional political camps — the EPP and 

Social Democracy — fighting for survival as Volksparteien. 

Mark this day in your calendars as a potential turning 

point for Europe,” Playbook wrote from Munich, where 

the Green party had just celebrated its first harvest in 

German polls, finishing as the second-largest force after the 

conservative CSU, and relegating the Social Democrats 

to fifth place. 

30

PLAYBOOK’S QUIZ & TOP 10 MOMENTS OF 2018 


I PRESENTED BY POLITICO’S 20TH EU STUDIES FAIR 

The power game: The Greens may not have won a golden 

ticket into government in Munich (they did in Luxembourg, 

and for the record they doubled their ministerial posts after 

another German regional election, in Hesse). But the big 

questions facing them in 2019 are how to make an impact 

in those parts of Europe where green issues are still widely 

considered a luxury — and how to transform votes into 

power. (That’s something the EPP is particularly good at.). 

5. MATTEO SALVINI HAS THE TIME OF HIS LIFE: “The 5Star 

Movement and the League have reached an agreement on 

a political government headed by Giuseppe Conte as prime 

minister,” the party’s two leaders, Luigi Di Maio and Matteo 

Salvini, said in a joint statement on May 30, Playbook 

wrote at the time. What followed was a demonstration of 

power — by the League, which was rising in the polls and 

ergo compromising far less on its promises to voters. Case 

in point: The number of irregular migrants arriving in Italy 

in 2018 went down by some 80 percent compared to 2017. 

The key question, for the League, for the Italian political 

landscape and for the EU, is whether Matteo Salvini 

is heading towards an alliance of Europe’s right-wing 

populists, or whether he’ll be seduced by the siren call of 

Italy’s center right, changing course and returning to its 

fold. 

6. FACEBOOK’S TURBULENT YEAR: Where to start? With 

the Cambridge Analytica scandal? With Vestager weighing 

up whether there are grounds to open a probe into 

Facebook’s European tax arrangements, as she deepens 

her multinational investigation into sweetheart tax deals? 

Perhaps the competition commissioner’s (and her fellow 

regulators’) new cause célèbre: Big Tech’s use of data? Or 

the various calls across the Continent for Facebook to deal 

with Russian trolls? Facebook lurched from one problem to 

another in 2018. And 2019 isn’t looking cruisier. 

7. JEAN-CLAUDE, A BRUTAL KILLER: A strategy that might 

work: ignoring him. Where were Jean-Claude Juncker 

and Donald Tusk in that photo of world leaders trying 

to talk Trump into signing their joint statement? Sitting 

behind everyone else, watching on. In July, Trump finally 

appeared to have understood why four European countries 

are represented by six people, as he seemed to develop 

a grudging frenemy relationship with Juncker. Top quote, 

according to diplomats who followed discussions, from this 

July 26 Playbook: “Jean-Claude is so brutal, a killer.” 

Juncker’s version of events: “We negotiated for three and 

a half hours. It’s good what we’ve managed to agree on,” 

Juncker told Playbook over the phone on the way to the 

airport after his meeting with Trump. What was the big win 

for the EU? “He has agreed to not increase tariffs on cars as 

long as we are on negotiating terms.” 

How did it go, Mr. President? “Talks were alleviated by 

the fact that we get along well, surprisingly,” Juncker said. 

Trump “appreciates that I challenged him twice at G7 

meetings, hard at it but polite in tone. He doesn’t like those 

who beat about the bush.” And as of this morning, Trump 

and Juncker were still on negotiating terms — despite 

many open threats by the U.S. side to slap car tariffs on 

European exports (a humiliating summons of German car 

bosses to the White House included). 

The next negotiation round is in January: Cecilia 

Malmström, the EU’s trade commissioner, will travel to 

Washington January 9 to take part in trilateral discussions 

between the EU, U.S. and Japan “to address issues such 

as trade-distortive practices,” according to a Commission 

spokeswoman. “During that visit, Commissioner 

Malmström will also meet the United States Trade 

Representative Robert Lighthizer, in the context of the 

executive working group on transatlantic trade relations.” 

News claxon: Malmström is not the only one who’ll be 

traveling westbound in the weeks to come. Commission 

Secretary-General Martin Selmayr has pencilled in a 

(yet-to-be-confirmed) meeting with Trump advisor Larry 

Kudlow mid-January, Playbook hears. 

8. MERKEL’S SPÄTHERBST: “Late fall might have begun for 

German Chancellor Angela Merkel, after her CDU and CSU 

Bundestag members rejected the man she chose to lead 

the parliamentary group. Volker Kauder, a close Merkel 

ally who has overseen the group for 13 years, lost in a 

secret ballot to challenger Ralph Brinkhaus. The result sent 

shockwaves — which made things wobble, but not yet 

collapse — through the German capital,” Playbook wrote 

September 26. 

But wait: Merkel’s defeat in that instance was also the 

first step of her (thus far successful) strategy to cling to 

power. Annegret Kramp-Karrenbauer, Merkel’s pick for 

her successor, won the race for the CDU chairmanship 

in December. Merkel will now stay on as chancellor. (It’s 

actually quite tricky, both constitutionally and politically, to 

unseat her.) Friedrich Merz, the CDU’s 48 percent man (and 

we’ve witnessed how much desperate noise 48 percenters 

can make, without actually changing things), had to resort 

to a FAZ interview to express his interest in a Cabinet 

post. Merkel, via spokesman Steffen Seibert, declared she 

doesn’t plan a reshuffle. 

9. MARTIN SELMAYR’S LIFE WITH, AND AFTER, JUNCKER: 

“There is life, and power, for Martin Selmayr after Jean- 

Claude Juncker’s term as Commission president runs out,” 

we were among the first to report on a fateful February 

morning. 

It was this year’s great tale of power in Brussels. Juncker 

brought his College of Commissioners to heel (which may 

not have been that hard), before then doing the same for 

the EPP and its leader (and Selmayr opponent) Manfred 

Weber (which was much harder) — by threatening to quit 

if he didn’t get his way on Selmayr’s promotion. 

The affair kept Brussels busy all the way until Parliament’s 

last voting session in December, when MEPs backed a 

report calling for the Commission secretary-general to 

resign. He didn’t. If anything, the whole saga displayed the 

fact that there is a majority against Parliament’s biggest 

group (which mostly abstained in the December 13 vote) 

— as long as there’s a cause worth fighting (or, as in this 

case, against). 

10.WEBER STEPS BACK FROM ORBÁN: Manfred Weber, 

the European People’s Party group leader and his party’s 

Spitzenkandidat for the EU election, in September issued 

a warning to Hungary’s Viktor Orbán: The PM needs to 

compromise on issues such as his NGO law and the Central 

European University if he wants his EPP family to vote 

against opening an Article 7 procedure that could suspend 

Hungary’s EU voting rights. “We expect the Hungarian 

government to make a move towards their EU partners. 

Europe’s fundamental values must be respected by all,” 

Weber told Playbook in Strasbourg in September. 

That’s a red line that, for once, was easy to follow up on. 

Weber — as the only CSU MEP — voted in favor of the 

Article 7 procedure. That process is now languishing in 

Council. 

Then there’s the procedure to suspend Fidesz from the EPP. 

“I have asked the European People’s Party to exclude the 

Hungarian Fidesz party,” Jean-Claude Juncker told Welt am 

Sonntag, adding: “I think the Christian democratic values 

on which the EPP is based are no longer compatible with 

Fidesz’s policy.” But Juncker said his motion was rejected. 

The CEU eventually left Budapest and moved to Vienna. 

Reading between the lines: Message to Emmanuel 

Macron: As a good European, you gotta give, not just take. 

THANKS: Lili Bayer and Laura Greenhalgh, and our 

producer Jillian Deutsch. 

QUIZ ANSWERS … 

1 = b (her name is worth 38 points in the German edition, 

39 points in the English one) 

2 = a (David Davis spent just four hours with Barnier) 

3= c (as any good Russian spy tourist knows, the spire is 

123 metres tall) 

4 = c (thick-skinned and prone to bursts of anger … a rhino 

was adopted by Viktor Orbán) 

5 = b (Neve Te Aroha is the PM’s daughter. Te Aroha means 

“bright and radiant” in Maori) 

6 = a (Macron’s approval rating was 47 percent in January 

and 27 percent in December) 

7 = a (of course Trump congratulated Putin) 

8 = b (out were Paolo Gentiloni, Miro Cerar and Mariano 

Rajoy. In were Giuseppe Conte, Marjan Šarec and Pedro 

Sánchez) 

9 = b (“little ethnic shops” have become “a meeting place 

for drug deals and people who raise hell”) 

10 = a (“Ooh see that girl, watch that scene, making the 

U.K. scream”) 

**A message from POLITICO’s 20th EU Studies Fair: Want 

to meet with leading academic institutions such as College 

of Europe, Maastricht University, Peking University HSBC 

U.K., the Johns Hopkins University, IE School of Global and 

Public Affairs, LSE, The Graduate Institute Geneva, Bocconi 

University, and more? Find them all gathered at POLITICO’s 

20th EU Studies Fair that will take place on February 8-9 

in Brussels. The event is a unique two-day opportunity 

to meet over 950 international students and 50 leading 

academic institutions in Brussels to discuss the next 

steps in their academic career. The program also features 

orientation seminars on the upcoming EU elections, 

career opportunities with the European institutions by 

the European Personnel Selection Office, visits to EU 

institutions, and university spotlights. Register for free 

online today.** MBR 

POLITICO SPRL; Brussels Playbook 


31


EU: INVESTMENTS 

ESMA report finds investment product 

performance highly impacted by 

charges By Solveig Kleiveland 

institutional investors. On average, retail 

clients pay twice as much as institutional 

clients. The impact varies across asset 

classes, with costs on average accounting 

for 25% of gross returns in the period 

from 2015 to 2017. On-going costs such 

as management fees constitute over 80% 

of the total cost paid by customers, whilst 

entry and exit fees have a less significant 

impact. 

In terms of overall returns, passive equity 

funds consistently outperform active equity 

funds. This is further demonstrated by the 

fact that costs for actively managed equity 

funds are found to be significantly higher 

than for passively managed funds and ETFs. 

The European Securities and Markets 

Authority (ESMA) today publishes its first 

Annual Statistical Report (Report) on the 

cost and performance of retail investment 

products. The Report covers Undertakings 

for Collective Investment in Transferable 

Securities (UCITS), Alternative Investment 

Funds sold to retail investors (retail AIFs) 

and Structured Retail Products (SRPs). 

The analysis complements ESMA’s risk 

assessment, supervisory convergence and 

investor protection work, and contributes to 

the European Commission’s project on cost 

and performance of investment products 

under the Capital Markets Union Action 

Plan. 

The report documents the significant impact 

of costs on the final returns that retail 

investors make on their investments: 

• the charges for UCITS funds, taken all 

together, reduce their gross returns by 

one quarter on average; 

• the cost impact varies widely, especially 

depending on the choice of product, 

asset class, fund type; and 

• management fees and other on-going 

costs constitute over 80% of investors 

costs, whilst entry and exit fees have a 

less significant impact. 

Market transparency is particularly 

limited for retail AIFs and SRPs for which 

practically no up-to-date data on costs and 

performance are available. 

Steven Maijoor, Chair, said: 

“The Report is an important building block 

in our investor protection work. Retail 

investors in the EU benefit from the choice 

among thousands of UCITS and alternative 

funds and structured investment products. 

It is key that they are aware of the costs and 

performance of these products. 

“Our Report shows that fund costs are 

substantive, can severely impact returns, 

and vary strongly. It demonstrates the 

importance of cost disclosure to investors, 

and the need for asset managers and 

investment firms to take costs into account 

when acting in the best interest of investors. 

This evidence should prompt investors to 

carefully compare the costs of investment 

products when making investment 

decisions. 

“Costs, their level and structure are relevant 

for investor protection, and we will monitor 

and assess what the evidence implies for 

our supervisory convergence work.” 

Highlights 

The data shows that for UCITS the total 

costs of a fund presents a significant drain 

on fund performance, impacting retail 

investors to a much higher extent than 

Moreover, the report finds significant 

variation in costs and gross performance 

across Member States. Finally, the report 

highlights the lack of available and usable 

cost and performance data, especially for 

retail AIFs and SRPs, which is a significant 

issue from an investor protection 

perspective. 

The report provides National Competent 

Authorities with useful information 

to support the implementation of the 

Capital Markets Union, and aims to 

facilitate increased participation by retail 

investors in capital markets by providing 

consistent EU-wide information on cost and 

performance of investment products. It also 

demonstrates the relevance of disclosure of 

costs to investors, as required by the MiFID 

II, UCITS and PRIIPs rules and the need for 

asset managers and investment firms to act 

in the best interest of investors, as laid down 

in requirements of MiFID II, the UCITS and 

AIFM Directives. MBR 

Credits: ESMA Press Office 

32

BUSINESS DEVELOPMENT: JAPAN 


Fostering business relationships with Japan 

Malta-Japan Business Opportunities was 

the theme of a seminar organised by 

Bank of Valletta in collaboration with the 

Malta-Japan Chamber of Commerce and 

the Japan External Trade Organisation Milan 

Office. The aim of the seminar was to bring 

together stakeholders and business players 

from both countries to share their personal 

experiences in doing business with Japan. 

Kentaro Ide, the director general, Jetro 

Milan gave an insightful presentation on the 

size of the Japanese economy, third largest 

economy in the world and how the Jetro 

office in Milan can play a key role in business 

matchmaking between Japanese and 

Maltese companies.http://ads.independent. 

com.mt/www/delivery/fc.php?script=deliveryLog:oxLogVast:logImpressionVast&banner_id=4192&zone_id=84&source=&vast_ 

event=start&r95108=95108 

Moderating the seminar, Mark Scicluna 

Bartoli, executive EU & Institutional Affairs 

at Bank of Valletta provided an insight to the 

EU-Japan Economic Partnership Agreement 

that will come in force in February and used 

it as a platform for various entrepreneurs, in 

the electronics, gaming, tourism and financial 

services sectors, to share their personal 

experiences of their dealings with Japanese 

businesses which provided the audience 

with valuable insight into doing business 

with Japan. 

André Spiteri, Ambassador of Malta to Japan 

underlined the importance of timing and 

how 2019, with the coming into force of 

the EU-Japan economic partnership, will be 

a key year in fostering a stronger business 

relationship between Malta and Japan. 

Joe Gabriele, John Schembri and Joe Small 

On a concluding note Kenneth Farrugia, 

chief Business Development officer at Bank 

of Valletta highlighted that: "As Malta's leading 

banking group, the internationalisation 

of local investment and attracting foreign 

direct investment features highly on our 

agenda. Events like these are key in sharing 

knowhow with Maltese enterprises assisting 

them to grow by leveraging on our experience 

and contacts." MBR 

Credit: BOV/The Malta Business Weekly 


33


Trending stories 

PAY GAP MAY TAKE 200 

YEARS TO CLOSE 

Differences in pay and economic opportunity 

between men and women are so vast that 

it would take 202 years to close them at the 

current rate, according to a report by the 

World Economic Forum. While improving, 

indicators like gender disparity across health 

and education, as well as participation and 

pay in the workforce, are moving slowly, 

particularly in East Asia and the Middle East. 

The report also found women lagging in the 

tech skillsof the future. Iceland topped the 

list as the best place for women in terms 

of gender equality and the Philippines was 

ranked best in Asia. 

GHOSTING HAS HIT THE 

OFFICE 

SPECIAL FEATURE: TRENDING STORIES 

nothing to do with economic data about 

full employment. Yes, there is a shortage 

of good talent but to leave a job without 

notice? Come on. This same scenario 

happened recently when I successfully 

placed an applicant in an Executive position. 

Things apparently were not working out 

after 30 days. So I receive a call from my 

employer client asking me if I knew that my 

candidate simply stopped coming to work? 

No, of course I had not. I called my candidate 

and he admitted that he simply received a 

better offer. And he admitted to ghosting 

his my client/employer. I was aghast. His 

justification? “Job loyalty doesn’t exist 

anymore.” This kind of behavior cannot be 

labeled as a generational thing based on a 

full employment economy. This is downright 

rude and unethical behavior. YOU’RE 

SUPPOSED TO GIVE NOTICE WHEN YOU ARE 

PLANNING TO LEAVE A JOB. What appears to 

be an appalling trend is that human decency 

is in decay. Am I missing something? 

kept waiting and bullied, according to The 

Wall Street Journal. The costs are real, too. 

One recruiter told the Journal he lost out on 

$9,000 in commissions when three people 

failed to show up for their first day of work. 

While candidates may have the upper hand, 

recruiters caution that there may come a day 

when the shoe is on the other foot. 

THE FALL OF AN AMERICAN 

ICON 

General Electric (GE), once one of the 

U.S.'s largest and most valuable firms, has 

fallen on hard times. A foray into finance, 

a reliance on short-term debt to boost 

earnings, and a few bad bets led to the 

company’s plummeting share price and 

sinking earnings. A report in The Wall Street 

Journal details various decisions by GE's 

leaders and the industrial conglomerate's 

downfall from behemoth to being cast out of 

the Dow Jones Industrial Average after over 

110 years. 

34 

Bernie Reifkind 

It may be most often associated with dating, 

but ghosting has spread to the professional 

world. It can happen during the hiring 

process — recruiters are reporting a surge 

of vanishing candidates in the UK — or 

even with existing employees who just stop 

showing up. Even the Fed has taken notice. 

Some blame a tight job market, with low 

unemployment meaning many are spoiled 

for choice. The first rumors about people 

"ghosting" employers began circulating 

several months ago. Now the millennial 

term has appeared in the Fed's Beige Book, 

making this most perverse sign of a strong 

labor market a matter of historical record. 

Ghosting at work is now big enough that it 

caught the Fed's attention 

Quitting by ghosting. Applicants blow off 

scheduled interviews. New hires turn into 

no-shows. Workers leave one evening and 

never return. No notice. Quitting a job 

without giving notice or “ghosting” has 

FACEBOOK SUED BY DC 

ATTORNEY 

The attorney general for the District of 

Columbia has sued Facebook for exposing 

the personal data of almost half its residents 

to Cambridge Analytica in 2014. The move 

is the first by regulators to punish the social 

media giant for its dealings with the political 

consultancy, which used a quiz app to 

harvest information on 87 million Facebook 

users and their friends around the world in 

the runup to the U.S. presidential election. 

The suit contends the company broke 

consumer-protection law by misleading 

users about the security of their information, 

hampering their ability to protect it and 

failing to inform them quickly about the 

breach by the consultancy. 

RECRUITERS FACE TIGHT 

LABOR MARKET 

Recruiters are facing an uphill battle in 

today’s labor market, which is the tightest 

since 1969. Some report being stood up, 

SAMSUNG’S BOT CARE 

AIMS TO HELP USERS 

MANAGE THEIR HEALTH 

It can take vitals and track sleep cycles. 

Whether it's your digital health or your 

physical wellbeing, tech companies want to 

be involved, and Samsung is no different. 

Today, at CES, the company showed off 

some of the ways it's looking to use its AI 

technology in the "future of connected 

living," and one of its platforms is focused 

on users' health. Samsung Bot Care aims to 

assist users in their daily health routines and 

Samsung's Yoon Lee demonstrated what the 

platform has to offer. 

In its quick demonstration, Samsung brought 

out a cute little robot with a Google Home 

Hub-ish face, and the bot instructed Yoon 

to place his finger on a sensor below the 

screen. It then took his vitals and read 

back both his blood pressure and heart 

rate, noting that both were within normal 

levels. Yoon and AI head Gary Lee also 

said the robot could monitor sleep cycles, 

call emergency services and offer music 

therapy to manage stress. It can also track 

medication intake, offer exercise guidance 

and give daily health briefings. MBR 

Credits: Twitter; engadget

SPECIAL FEATURE: TRENDING STORIES 


HYUNDAI UNVEILS WALKING 

CONCEPT CAR ELEVATE 

Natashah Hitti 

South Korean carmaker Hyundai has 

revealed its concept for a vehicle with 

robotic legs that could save lives as a first 

responder in natural disaster zones. 

Unveiled at this year's Consumer Electronics 

Show (CES) in Las Vegas, Hyundai's Elevate 

concept is an electric car with robotic legs 

that can be extended to drive and be used 

for walking. 

The concept is designed to help emergency 

workers travel across harsh terrain in the 

event of a natural disaster. 

"Any first responder will tell you that the first 

72 hours following a natural disaster 

are the most crucial to saving lives," said the 

creators. 

"However, often times due to the nature 

of the disaster (forest fire, earthquake, 

hurricane, or flood), it can be difficult for 

search-and-rescue and humanitarian aid 

missions to reach and get immediate help to 

those in need." 

Hyundai developed the concept to be faster, 

more efficient and resilient than ordinary 

off-road vehicles. 

The resulting design is based around a 

modular electric vehicle chassis architecture, 

which features interchangeable bodies that 

can be swapped depending on the situation 

and environment. 

Four robotic legs that extend from the 

body give the vehicle the option of driving, 

walking or climbing in any direction across 

different landscapes, helped by torsional 

control at the end of each leg. 

"People living with disabilities worldwide 

that don't have access to an ADA ramp could 

hail an autonomous Hyundai Elevate that 

could walk up to their front door, level itself, 

and allow their wheelchair to roll right in," 

Suh added. "The possibilities are limitless." 

Creditline: Dezeen 

LIBE MEETING ON 7 

JANUARY 2019 – DEBATES 

ON ASYLUM AND 

MIGRATION 

In the LIBE meeting on 7 January the 

Commission presented its Communication 

on Managing migration in all its aspects: 

progress under the European Agenda on 

Migration followed by an exchange of views 

with Members. Afterwards, the study on the 

Cost of Non-Europe in Asylum Policy was 

presented by the European Parliamentary 

Research Service (EPRS). 

BY FLORIAN EDER 

WITH ZOYA SHEFTALOVICH 

PRESENTED BY GOOGLE 


REFUGEE CRISIS UNRESOLVED: 

Nine EU countries pledged — behind 

the closed doors of an EU ambassadors’ 

meeting Monday — to take in refugees 

recently rescued in the Mediterranean, two 

EU diplomats told Playbook. Eight of the 

countries are in the old West. The ninth, a 

notable exception in Central and Eastern 

Europe, is Romania, which holds the Council 

presidency. (Austria never bothered to lead 

by example in these sorts of cases during its 

own presidency.) 

The problem: The pledges still fall short. 

Here’s the math: There are two ships in 

a Maltese port awaiting permission to 

disembark 49 migrants. But Malta rescued 

an additional 250 people over the past few 

weeks, and Valletta says they need to be 

part of any redistribution. EU diplomats told 

Playbook the nine countries’ pledges cover 

the 49 migrants aboard the Sea-Watch 3 

and Professor Albrecht Penck, but leave the 

other 250 or so people in limbo. 

Side note: Things wouldn’t change much 

if Malta let the 49 migrants ashore. But for 

Valletta, migration is a matter of principle, 

and the government wants the rest of the 

EU to take Malta as seriously as they take 

neighboring Italy and its insistence that it 

has taken enough refugees for a generation. 

Silver lining: In the Monday meeting of 

ambassadors, Italy declared it would take 

some of the migrants — but only after they 

disembarked on Maltese soil, according to 

two diplomats. 

Next attempt today: The Commission says 

it’s working on a solution. Countries have 

another opportunity to agree to chip in at 

today’s General Affairs Council — or rather 

at its margins. But even if that happens, it 

would be nothing more than yet another adhoc 

solution to a structural issue. 

**A message from Google: We support 

the copyright directive’s goal to protect 

journalism. But Article 11 of the directive 

threatens to take away news publishers’ 

choices about how to distribute and make 

money with content online. Let’s find a 

better way to update copyright rules in 

Europe.** MBR 

Compiled and edited by Martin Vella 


35


CIVIL SOCIETY: EURO MED 

Investing in human capital is essential for the sustainable 

development, but also to ensure stability and security in the Euro- 

Mediterranean region 

Quality EVT systems 

Luca Jahier, President of the European Economic and Social Committee & Cesare 

Onestini, Director of the European Training Foundation 

2018 Euromed Summit of Economic and 

Social Councils and similar institutions 

Members of civil society representative 

bodies from countries of the Euro- 

Mediterranean region met in Turin 

to discuss the situation of education 

and training in the area. Although the 

challenges faced by each of the countries 

are different, as access to education and 

training is very unbalanced in the region, 

the general consensus was that investing 

in human capital is essential for the 

sustainable development of the countries, 

but also to ensure regional stability and 

security. 

Recent data show a generally poor 

performance of the labour market in 

the Euromed region, with limited job 

creation, a low activity rate (especially 

among women, less than 25% on average), 

extreme disadvantage of youth and women 

participation in the labour market and an 

increase in the number of persons Not in 

Education, Employment or Training (NEETS) 

in risk of exclusion. The education and 

training sector is therefore called to lay a 

central role in equipping people with the 

right skills. 

As stated by Luca Jahier, President of the 

European Economic and Social Committee 

(EESC), "these are exactly the times 

when our involvement as civil society 

organisations is key to foster dialogue, 

create bridges and improve the future of 

the citizens in our societies". Along the 

same line, Cesare Onestini, Director of the 

European Training Foundation (ETF), pointed 

out that "the key conditions of success 

in human capital development are the 

quality, continuity and regularity of social 

concertation between the government 

authorities and the social partners' 

organisations, including civil society". 

"these are exactly 

the times when our 

involvement as civil 

society organisations is 

key to foster dialogue, 

create bridges and 

improve the future 

of the citizens in our 

societies. 

Luca Jahier also highlighted that education 

and training is a very important topic not 

only in the Mediterranean region, but also 

for the civil society representative bodies, 

"that have a key role to play in developing 

policies in these areas". The main goal of 

the Euromed summit was to add inputs to 

draft a report, "a truly collaborative work 

able to produce recommendations with a 

true regional added value to policy makers, 

in Europe and in all other Mediterranean 

countries", in Jahier's words. 

The participants discussed during the 

summit the challenges posed by education 

in the region and contributed to a collective 

reflection that will give rise to an in-depth 

report that will be sent to Governments 

of the represented countries. During 

the debate, proposals were made to 

to enhance Educational and Vocational 

Training (EVT) and lifelong learning in all 

Euromed countries as part of a project 

aimed at consolidating strong democracies, 

solid economies and societies with less 

inequalities. It was also agreed that the EU 

should contribute to ensuring the design of 

a quality EVT system in Euromed countries 

and, with that aim, a number of proposals 

were made for joint action to: increase 

networking, e-learning and cooperation 

between education providers; promoting 

projects to mainstream gender equality in 

EVT activities; supporting the development 

of national qualification frameworks. The 

EESC also encourages the Commission 

to propose, in coordination with the 

International Labour Organization (ILO) 

a "country programme strategy" and to 

coordinate its work with other international 

organisations, as the United Nations, the 

IMF or the World Bank´. 

Context 

The Euro-Mediterranean Summit of 

Economic and Social Councils and Similar 

Institutions aims at promoting greater 

understanding of the main issues affecting 

organised civil society in the Euromed 

region and at discussing the common 

challenges they face. This year, the 

event was co-organised by the European 

Economic and Social Committee (EESC) and 

the European Training Foundation (ETF), 

and exchanges focused on education and 

training. MBR 

Credit: EUROMED/EESC 

36

HR 


RECRUITERS FACE TIGHT 

LABOUR MARKET 

BY SPECIAL CORRESPONDENT 

Recruiters are facing an uphill battle in today’s labor market, which is the tightest since 1969. 

Some report being stood up, kept waiting and bullied, according to The Wall Street Journal. 

The costs are real, too. One recruiter told the Journal he lost out on $9,000 in commissions 

when three people failed to show up for their first day of work. While candidates may have 

the upper hand, recruiters caution that there may come a day when the shoe is on the other 

foot. 

Chip Cutter: Rporter at The Wall Street Journal 

Their calls go unanswered. Their emails get 

ignored. They are stood up for appointments 

and regularly ridiculed online. Today, I wrote 

about what it's like to be a recruiter, the 

loneliest job in a tight labor market: 

https://lnkd.in/dEsUpwJ 

Once overrun with resumes, able to pick 

and choose among hundreds of applicants, 

recruiters these days find themselves 

in the midst of a role reversal. With the 

unemployment rate the lowest in nearly 

a half century, applicants have the upper 

hand – and they know it. Recruiters say their 

jobs are tougher and more frustrating. To 

cope, some managers have begun sending 

recruiters home in the middle day, knowing 

they've had enough. One industry veteran 

has a warning, too: “We could go into a 

recession," she says, and applicants will be 

"begging for new jobs." 

As a small business owner, you may not 

have the same resources the big companies 

have to offer new recruits. As such, as 

unemployment rates continue to decrease, 

it becomes more difficult to attract the most 

talented employees. In a tight labor market, 

you need to get creative with your recruiting 

techniques to tap into the best and brightest 

talent pool. 

"A nationwide 

shortage of 

candidates in 

a particular 

industry, for 

example, 

may create 

local hiring 

difficulties. 

Your company’s ability to attract talent 

depends, in part, on factors outside your 

control. A nationwide shortage of candidates 

in a particular industry, for example, may 

create local hiring difficulties. And it’s not 

only a talent shortage in your particular 

industry that has implications for hiring. You 

may think that a shortage of tech employees 

isn’t relevant to your business. But if you 

have an on-staff IT expert, and he or she 

opts for greener pastures, what’s happening 

with tech employment becomes important. 

Speaking of greener pastures, make sure 

you stay current on all employment trends 

in your primary and related industries— 

including salaries and benefits. In order to 

attract job candidates, it’s always advisable 

to remain competitive. In a tight labor 

market, it’s essential. 

In a candidate driven market, if you are 

ghosted, evaluate your current candidate 

experience because it is highly competitive 

right now and candidates are not here 

for a terrible experience in this market. 

Candidates and recruiters can both do better 

and be more respectful of each other’s time. 

It is awful for candidates to ghost companies 

but it is also just as hard to never hear back 

from recruiters. It’s two way communication. 

What do you make of this trend? I'd love to 

read your thoughts. MBR 

Creditline: LinkedIn/Wall Street Journal 


37


By Thomas Haahr 

EU: ELECTRICITY MARKET RULES 

EU deal on electricity market rules to benefit both 

consumers and environment 

• Increased cross-border flows of 

electricity from renewable energy 

• End of state subsidies to the most 

polluting coal power plants 

• A better deal for consumers, including 

smart meters and dynamic pricing 

The creation of a genuine EU electricity 

market to better integrate renewable 

energy was provisionally agreed between 

MEPs and EU member states on Tuesday 

night. 

An overhaul of EU electricity market rules 

was informally agreed to tackle barriers to 

cross-border trade of electricity and create 

a real European electricity market where 

70% of all electricity can cross EU borders 

freely. This will make it easier to integrate 

renewable energy in the electricity grid 

and hence support efforts to reach the 

EU’s binding goal of 32% renewables by 

2030. In addition, it strives to make the EU’s 

electricity market more competitive and 

consumer-oriented. 

A better deal for consumers 

Consumers will benefit substantially from 

the new rules, which include: 

• Switching - electricity providers must 

offer consumers the option to switch 

provider (with no fees) within a 

maximum period of three weeks (and 

24 hours by 2026); 

• Smart meters - consumers will have the 

right to get smart meters to control 

their consumption, unless analysis in 

a given member state shows that the 

cost outweighs the benefits; 

• Price comparison: consumers will have 

access free-of-charge to an online price 

comparison tool; 

• Dynamic price contract: consumers 

will also be able to opt for a dynamic 

electricity price contract from energy 

companies with more than 200.000 

clients. 

No more state subsidies to the most 

polluting coal power plants 

EU rules currently allow national authorities 

to pay conventional power plants to be on 

stand-by for a limited period of time if there 

is a demand peak or temporary shortage 

of renewable energy (e.g. wind and sun), 

known as capacity mechanisms. 

As requested by Parliament, the agreed text 

provides for an additional EU assessment 

(together with national ones) on the risks 

of a possible electricity shortage in member 

states to avoid unnecessary use of these 

exceptions. 

In addition, stricter limits for member states 

willing to subsidise power stations as a 

capacity mechanism shall prevent the most 

polluting coal power plants in Europe from 

receiving state aid. Power stations emitting 

more than 550 gr of CO2/kilowatt hour of 

electricity shall not receive subsidies from 

the state to remain on stand-by in case of 

demand peak of electricity. The measures 

will apply to all new capacity mechanisms 

from date of entry into force of the 

Regulation and to existing ones from 2025. 

Energy poverty and price regulation 

Member states will be able to regulate 

prices temporarily to assist and protect 

energy-poor or vulnerable households, 

negotiators agreed. Preference should 

however be given to addressing energy 

poverty through social security systems. 

EU member states that still regulate 

household prices may continue to do so 

but they shall submit reports to assess 

the progress towards abolishing price 

regulation. By 2025 the Commission shall 

submit a report on overall EU progress, 

which may include a proposal to end 

regulated prices. 

Quote 

After the deal was reached, rapporteur 

Krišjānis KARIŅŠ (EPP, LT) said: “This 

agreement is good for the climate and good 

for the wallet. It will help the transformation 

to cleaner electricity production and it 

will make the electricity market more 

competitive across EU borders. Parliament 

has succeeded in getting rid of heavy state 

subsidies, so that the market can do its job 

of supplying EU industries and households 

with affordable and secure energy.” 

Next steps 

The deal will now be put to the Industry, 

Research and Energy Committee and 

plenary for approval as well as to the 

Council. The Regulation and the Directive 

will enter into force 20 days after 

publication. Member states will have to 

implement the Directive by 31 December 

2020. MBR 

PRESS SERVICE 

EUROPEAN PARLIAMENT 

Courtesy: EU/Europarl/Press 

38

SPOTLIGHT: BREAKING BARRIERS 


The Problem with 'hiring people on merit' 

By Jack Preston 

Jordan Bangura in conversation with film director and Oscar winner Richard Loncraine 

Image credit: virgin.com 

The unemployment rate for BAME people of 

working age is nearly double that of white 

British groups, according to UK government 

research released last year. 

While shocking, this statistic will not come 

as a surprise to many with biases - both 

conscious and unconscious - built into so 

many of Britain’s industries, businesses 

and employment practices. From the latest 

episode of the Breaking Barriers podcast, 

courtesy of Virgin, we decided to explore 

the barriers to fair work opportunities and 

employment that race can often present, 

through the lens of the film industry. 

Jordan Bangura is a young, confident black 

man who has been involved in the charity 

Cardboard Citizens for several years, making 

life-changing theatre with and for homeless 

people and has aspirations to work in the 

film industry. Richard Loncraine is a white 

film director and Oscar winner, based in 

West London, who spends much of his 

time in the US having had a very successful 

career in Hollywood. 

In this episode, the two sit down to talk 

unashamedly about race; how the industry 

has changed its perception of race over the 

years, why representation is important and 

their hopes for the future… with one or two 

Hollywood anecdotes along the way. 

But what did this episode teach us? 

Young black men have higher 

unemployment rates than all other 

groups of young people. This alone is an 

uncomfortable statistic but when compared 

to the numbers of young white men in 

employment the reality of the situation 

becomes even more shocking, with a 2013 

survey discovering that only 56 per cent 

of young black men in the UK had found 

employment, compared with 81 per cent of 

young white men. 

The importance of representation. The 

need for governments and businesses to be 

representative of the society they operate 

in is often discussed and on this episode a 

story from Jordan underlined the practical 

implications of how this plays out. "That 

moment I saw John Boyega on television, 

that’s when everything changed for me," 

explained Jordan. "I always wanted to act 

when I was a kid, but when you don’t see 

people on TV with the colour of your skin, 

you think it’s not realistic." 

The merit paradox. Throughout the 

conversation between Jordan and Richard 

the idea of "hiring on merit" was talked 

about a fair bit, which on face value may 

seem an acceptable state of affairs. However 

as our presenter Yassmin was quick to point 

out, the presence of unconcious bias can 

often undermine this approach. "When 

people say they hire on merit, what actually 

happens, unconsciously, is that they hire 

what the idea of the best person of the 

job is," notes Yassmin. "That’s the merit 

paradox.” 

This month sees the release of Virgin’s 

fourth episode of the series, which focuses 

on cerebral palsy. You can search Breaking 

Barriers and subscribe on Apple Podcasts, 

Spotify, Pocket Cast, Castbox or where 

ever you get your podcasts from. MBR 

Credit: virgin.com 


39


EUROPEAN CITIZEN'S PRIZE 

SRB: 2019 Resolution Reporting 

The Single Resolution Board (SRB) 

has today published requirements for 

resolution reporting by banks in 2019. 

As in previous years, banks are required to 

submit information to enable resolution 

authorities to prepare resolution plans. This 

publication includes updates to the SRB 

critical functions and FMI reports, as well as 

an overview of reporting deadlines for all 

required templates: 

• the Liability Data report, which was 

published on 30 September 2018, 

should be submitted by 31 March 2019; 

• the Critical Functions and the FMI 

reports should be submitted by 30 April 

2019; 

• the other templates required under 

European Commission Implementing 

Regulation (EU) 2018/1624 of 23 

October 2018 should be submitted by 

31 May 2019. 

Pursuant to Article 11 (1) BRRD and Section 

B of BRRD Annex, as well as Article 8 (4) 

SRMR, the SRB collects information for 

drawing up and implementing resolution 

plans for banks under its remit. 

The SRB resolution reporting requirements 

(Liability Data Report, Critical Functions 

Report and FMI Report) cover the minimum 

information required by European 

Commission Implementing Regulation (EU) 

2018/1624 of 23 October 2018 as well as 

further details required for the respective 

area. The sub-pages describe specific 

SRB resolution reporting requirements in 

more detail, including reporting deadlines, 

format, changes compared to last year and 

frequently asked questions. 

In 2018 the SRB made a request to banks for 

certain data on their liabilities, as per Article 

11(1) BRRD and Section B of BRRD Annex, 

with the aim of collecting information for 

drawing up and implementing resolution 

plans, including MREL targets. During the 

collection of this data, over 900 Liability Data 

Reports (LDRs) were requested from the 120 

banking groups in scope of the exercise. 

For 2019, the SRB highlights the 

importance of high quality, complete and 

timely data submissions. The ability to 

provide the necessary data to support 

the implementation of the resolution 

strategy, is a key resolvability issue, to 

be adequately considered by banks’ top 

management. To ensure banks meet the 

reporting deadline of 31st March, the SRB 

recommends that all banks implement the 

following measures: 

The Single Resolution Board, in collaboration 

with National Resolution Authorities (NRAs), 

is embarking on its annual Liability Data 

Collection exercise. During the 2019 edition, 

the collection will be based on data as at 31 

December 2018. The process will integrate 

lessons learned from the previous exercises 

and take into account the feedback received 

from NRAs as well as the industry. MBR 

Overview of SRB Resolution Reporting 

Requirements for 2019 

Credits: ingle Resolution Board 

40

MIA: VAT & FSS 


MIA members learn about new VAT & FSS measures 

The new VAT returns system was 

discussed at an exclusive information 

session organised by the Malta Institute 

of Accountants and the Malta Institute of 

Taxation. Specialists explained the changes 

effected by the newly introduced online 

submission system and answered questions 

from the floor. 

"This initiative is in line with the 

organisations' respective commitment to 

share and diffuse knowledge as well as offer 

support and guidance to its members and 

the wider business community," said Claudia 

Vella Schembri from the Malta Institute of 

Accountants Technical Department. 

The Institute of Accountants held the 

session to update members on the new 

mandatory requirements for online 

submissions of VAT Returns and FSS end-ofyear 

online submissions, which came into 

force recently. 

The session was addressed by experts from 

the Office of the Commissioner for Revenue. 

Noel Agius, who was deeply involved in 

the development of the Final Settlement 

System, spoke about the online FSS 

submissions system while Andrew Buhagiar, 

from the IT Section, delivered a presentation 

on online VAT Returns submissions. Efrem 

Ray Debono, who manages the Back Office 

and the Data Processing Unit, offered a 

comprehensive review of the new system. 

The speakers took questions from a highlyengaged 

audience and offered detailed 

technical tips. 

The collaboration with the Malta Institute 

of Taxation is in line with the Malta 

Institute of Accountants' strategy to create 

synergies with other professional bodies 

to support the wider business community. 

The information session is part of the 

Institute's commitment to share and 

diffuse knowledge with its members and 

to offer practical guidance to accounting 

professionals. MBR 

Courtesy: MIA/The Malta Business Weekly 


41


VENICE COMMISSION 

Venice Commission recommendations 

The Government of Malta positively welcomes 

the opinion of the European Commission for 

Democracy through Law, known as the Venice 

Commission which was published earlier today. 

This opinion, which was prepared on the 

invitation of the Government of Malta to the 

Venice Commission, also includes a number 

of recommendations for changes and reforms 

by the Venice Commission. The Venice 

Commission recommendations mainly focus 

on laws and systems which are long-standing 

and were ‘inherited’ by this government. This is 

confirmation that the recent reforms which this 

Government has embarked upon were deemed 

positive and a step in the right direction. 

The aim of the Venice Commission’s 

recommendations is to strengthen the 

framework of the separation of powers 

between the government, Parliament, and 

the Judiciary in Malta; to strengthen the 

independence and accountability of State 

institutions; and to implement change in various 

areas of public administration and the State, 

including prosecution and the forces of law and 

order. 

In brief, the recommendations are as follows: 

(See Below) 

These were, in brief, the main 

recommendations of the Venice Commission. 

On behalf of the Government of Malta, I would 

like to officially thank the Venice Commission for 

the work it has undertaken. 

It should be noted that since 2013, this 

Government has implemented a series of robust 

reforms, and several recommendations made 

by various stakeholders have been implemented 

gradually. Sufficed to say that less than five years 

ago, a number of important laws came in force, 

among them: 

• Party Financing Laws; 

• A comprehensive and holistic 

Whistleblowers’ Act; 

• A law abolishing time-barring on offences 

related to corruption by politicians; 

• A law which strengthened judicial 

independence by reforming the manner in 

which judicial appointments and discipline 

take place; 

• A law which subjects high-level 

appointments such as Chairpersons of 

principal regulatory authorities, and 

non-career Ambassadors and High 

Commissioners, to parliamentary scrutiny; 

• A law lessening the powers of the Attorney 

General in drug and other cases; 

• And laws which introduced the right 

to a lawyer during arrest, the right of 

disclosure, and other reforms brought into 

force which improved this sector; 

On judicial appointments 

1. The further strengthening of the system of transparency introduced by this Government - whereas while previously appointments to the 

judiciary was at the Prime Minister’s absolute discretion, now this is done by publishing a call for applications. 

2. The composition of the Judicial Appointments Committee, also introduced by this Government, should be broadened to include more 

members of the Judiciary, to be elected by their peers. 

3. The Judicial Appointments Committee should propose selected candidates directly to the President of Malta, who would be bound by that 

proposal, including the appointment of the Chief Justice. 

On the discipline of members of the judiciary 

4. The removal of a sitting Judge or Magistrate from office should not be possible through a simple two-thirds majority in Parliament, but by the 

Commission for the Administration of Justice. 

5. It should be possible for disciplinary decisions by the Commission for the Administration of Justice to be subject to an appeal before a court. 

On the prosecution 

6. An Office of the Director of Public Prosecutions should be set up, which shall assume some of the functions currently performed by the 

Attorney General and the Police, as well as the functions of the Magisterial Inquiry. 

7. The Attorney General should remain the Government’s Legal Adviser. 

8. The Police Force should remain responsible for investigative work. 

On the effect of decisions by the Constitutional Court 

9. When a decision by the Constitutional Court holds that a law runs contrary to the Constitution, that decision should be able to revoke that 

particular law. 

On Parliament 

10. Members of Parliament should serve on a full-time basis and should be given more resources. 

On the Ombudsman 

11. The rules on the appointment and removal from office of the Ombudsman should be raised to Constitutional level. 

On the Executive 

12. The President should have more powers and be elected and removed by a qualified majority. 

13. Certain decisions for which the Prime Minister is responsible - particularly with regards to appointments to independent commissions - 

should become the responsibility of the Cabinet, while a number of powers should be more spread out. 

14. Permanent secretaries should be chosen on the basis of merit, by the Public Service Commission. 

Positions of trust 

15. Appointments to Positions of Trust should be regulated by the Constitution in such a manner as to have a clear legal basis, with clear 

parameters. 

And on the Police 

16. The Commissioner of Police should be appointed after a public call, with the Prime Minister having the right to veto. 

42

VENICE COMMISSION 


The opinion of the Venice Commission 

is a valuable contribution to the process 

of legal and constitutional reform in our 

country. Furthermore, it builds on what this 

Government has been working towards, after 

many years without change. The Government 

is in general agreement with the bulk of the 

Venice Commission’s proposals, and it intends 

to implement them in the main. 

The majority of the proposed reforms touch 

upon articles of the Constitution which require 

the approval of two thirds of the House of 

Representatives to be amended. Some of 

them also require laborious parliamentary 

and administrative processes. Furthermore, 

the Commission itself also proposed that 

the recommendations should be adopted 

following an appropriate examination, and 

subject to adequate transitory measures, so 

that the independence of existing officials is not 

prejudiced. 

In this regard, the Government is looking 

towards a process whereby the proposals 

are implemented and, where necessary, with 

transitionary measures, with the ultimate aim 

being effective reform for the strengthening 

of rule of law. In this context, the work of 

the Steering Committee for a Constitutional 

Convention presided by the President of the 

Republic could not have commenced at a more 

opportune time. 

This Government is a reformist Government, 

and thus it considers the opinion of the Venice 

Commission as an important point of reference 

for the strengthening of the rule of law in our 

country. For this reason, through the Steering 

Committee for a Constitutional Convention, as 

well as through the implementation of other 

measures as the case may be, the Government 

is welcoming the recommendations, and will 

be following up implementation through the 

relevant bodies and at the appropriate levels, 

also on the basis of careful examination, and 

inclusive consultation. MBR 

Link message: https://we.tl/t-uyYdD7a8hs 

Link report: https://www.venice.coe. 

int/webforms/documents/default. 

aspx?pdffile=CDL-AD(2018)028-e 

Credits: DOI 

Minister Scicluna speaks at the 

Atlantic Dialogues in Marrakech 

“The International Financial Crisis of 2008 

was a perfect storm where millions lost their 

jobs, lost their homes and lost their savings 

– it was a catastrophic international crisis. 

There are many dark clouds ahead today 

which may lead to economic downturns in 

some parts of the globe, but it would be 

farfetched to expect that they will all come 

together and form another perfect storm in 

the years ahead.” 

Minister for Finance Edward Scicluna was 

one of the leading panel speakers during 

a plenary session titled ‘10 Years After 

the International Financial Crisis: Is the 

Next One Looming?’, as part of the annual 

Atlantic Dialogues held in Marrakech 

between the 13th to 15th of December, 

2018. 

During the panel discussion, Minister 

Scicluna discussed the EU’s take on the 

lessons learnt from the international 

financial crisis, as well as topics currently 

being deliberated to ensure another crisis 

of that magnitude is not repeated. Minister 

Scicluna stated that looking to the future, 

if we were to combine all the threads of all 

the pressures around the world, they do 

not bode well for the future. However, we 

would not go as far as to say that the next 

international financial crisis is looming. 

This was the seventh edition of the Atlantic 

Dialogues, a high-level conference that 

has become a tradition since its launch in 

2012 by its founding partners the German 

Marshall Fund of the United States and the 

OCP Policy Centre in Morocco. 

This annual conference convenes influential 

public and private sector leaders from 

around the Atlantic basin for open, informal 

discussion on cross-regional issues. The 

event encourages an interactive exchange 

of views between young professionals and 

today’s leaders. This year’s theme was that 

of ‘Overcoming the Choke Points’. Other key 

speakers included Madeline Albright, former 

US Secretary of State, Zeinab Badawi, 

presenter of BBC Hard Talk programme, Uri 

Dadush, past President of the Economic 

Intelligence Unit, and Amre Moussa, past 

Secretary General of the League of Arab 

States. MBR 

Credits/Photos: MFIN 


43


AI/ROBOTICS 

Robots walk, talk, pour beer and take over CES tech show 

AvatarMind has developed service 

robots like iPal which is based on artificial 

intelligence, motion control, sensors and 

power management, and created iPal 

to deliver on that vision with multiple 

applications for friendly, fun and functional 

robot assistants, shown at CES International 

Tuesday, Jan. 8, 2019, in Las Vegas. Designed 

for child education and elder care, iPal is 

a fully functional humanoid robot with 

a friendly, playful demeanor, as iPal runs 

on the Android operating system with 

extensions for motion, sensor and natural 

language conversation. (AP Photo/Ross D. 

Franklin) 

LAS VEGAS — Robots that walk, talk, pour 

beer and play pingpong have taken over 

the CES gadget show in Las Vegas again. 

Just don't expect to find one in your home 

any time soon. Most home robot ventures 

have failed, in part because they are so 

difficult and expensive to design to a level of 

intelligence that consumers will find useful, 

says Bilal Zuberi, a robotics-oriented venture 

capitalist at Lux Capital. But that doesn't 

keep companies from trying. "Roboticists, 

I guess, will never give up their dream to 

build Rosie," says Zuberi, referring to the 

humanoid maid from "The Jetsons." But 

there is some hope for others. Frank Gillett, 

a tech analyst at Forrester, says robots with 

more focused missions such as mowing the 

lawn or delivering cheeseburgers stand a 

better shot at finding a useful niche. 

ROBOTS THAT DELIVER 

There are so many delivery robots at CES 

that it's easy to imagine that we'll all be 

stumbling over them on the sidewalk — or 

in the elevator — before long. Zuberi says 

it's among the new robot trends with the 

most promise because the field is drawing 

on some of the same advances that power 

self-driving cars. But it's hard to tell which — 

if any — will still be around in a few years. 

Segway Robotics, part of the same company 

that makes electric rental scooters for Lime, 

Jump and Bird, is the latest to get into the 

delivery game with a new machine it calls 

Loomo. The wheeled office robot can avoid 

obstacles, board elevators and deliver 

documents to another floor. A similar office 

courier called the Holabot was unveiled by 

Chinese startup Shenzhen Pudu Technology. 

CEO Felix Zhang says his company already 

has a track record in China, where its 

Pudubot robot — which looks like shelves 

on wheels — navigates busy restaurants as a 

kind of robotic waiter. 

Nearly all of these robots use a technology 

called visual SLAM, short for simultaneous 

localization and mapping. Most are 

wheeled, though there are outliers — such 

as one from German automotive company 

Continental, which wants to deploy walking 

robotic dogs to carry packages from selfdriving 

delivery vans to residential front 

doors. A delivery robot will need both 

sophisticated autonomy and a focused 

mission to stand out from the pack, 

says Saumil Nanavati, head of business 

development for Robby Technology. His 

company's namesake robot travels down 

sidewalks as a "store on wheels." The 

company recently partnered with PepsiCo to 

deliver snacks around a California university 

campus. 

ROBOTS FOR DOGS 

Does man's best friend need a robotic pal of 

its own? Some startups think so. "There's a 

big problem with separation anxiety, obesity 

and depression in pets," says Bee-oh Kim, a 

marketing manager for robotics firm Varram. 

The company's $99 robot is essentially a 

moving treat dispenser that motivates pets 

to chase it around. A herd of the small, 

dumbbell-shaped robots zoomed around 

a pen at the show — though there were 

no canine or feline conference attendees 

to show how the machines really work. 

Varram's robot takes two hours to charge 

and can run for 10 hours — just enough 

time to allow a pet's guilt-ridden human 

companion to get home from work. 

ROBOTS ON GRANDPARENT WATCH 

Samsung is coming out with a robot that can 

keep its eye on grandparents. The rolling 

robot can talk and has two digital eyes on 

a black screen. It's designed to track the 

medicines seniors take, measure blood 

pressure and call 911 if it detects a fall. The 

company didn't say when Samsung Bot 

Care would be available. Samsung says it's 

also working on a robot for retail shops and 

another for testing and purifying the air in 

homes. 

ROBOT FRIENDS 

Lovot is a simple robot with just one aim 

— to make its owner happy. It can't carry 

on long conversations, but it's still social — 

approaching people so they can interact, 

moving around a space to create a digital 

map, responding to being embraced. 

Lovot's horn-shaped antenna — featuring 

a 360-degree camera — recognizes its 

surroundings and detects the direction of 

sound and voices. Lovot is the brainchild 

of Groove X CEO Kaname Hayashi, who 

previously worked on SoftBank's Pepper, 

a humanoid robot that briefly appeared in 

a few U.S. shopping malls two years ago. 

Hayashi wanted to create a real connection 

between people and robots. "This is just 

supporting your heart, our motivation," he 

says. MBR 

Credit: Associated Press 

44

FAMILY BUSINESS 


BOV supporting family businesses within tourism sector 

family businesses in financing the passing 

on of their business to the next generation. 

Our Relationship managers can direct the 

family business to undertake a succession 

plan so as to safeguard continuity and assist 

the business with the necessary financing to 

fulfil succession objectives." 

The BOV Family Business Transfer Loan is to 

be launched during the first quarter of 2019. 

Bank of Valletta, in conjunction with MHRA, 

will be organising workshops during the 

coming year to provide further information 

on this initiative. 

Bank of Valletta together with the Malta 

Development Bank and the Family Business 

Office have designed an innovative financing 

product to assist family businesses transfer 

their enterprise to the next generation. This 

initiative, a first for Malta, was announced 

by Mark Scicluna Bartoli, BOV executive, 

during the Malta Hotels and Restaurants 

Association's third quarter review and 

annual conference. 

Tourism, being Malta's main source of 

income, requires strong local companies 

that are geared to meet the needs of 

this ever-growing sector. Most of these 

enterprises are family-run businesses which 

over time have developed into increasingly 

complex structures. 

Scicluna Bartoli stated: "Bank of Valletta 

has a strong affinity towards Maltese family 

businesses since they have solid ties to 

their business and will back their company 

through the good and bad times. However, 

the bank's experience in engaging with 

family businesses has shown that overdependency 

on one family member together 

with the lack of succession planning hinder 

the long-term sustainability of family 

businesses. Through this tailored product, 

which offers a favourable interest rate and 

collateral terms, Bank of Valletta will assist 

In the meantime, information about 

succession planning of family businesses 

through ownership transfer can be 

obtained from BOV SME Finance Unit at 

smefinance@bov.com or on 2275 1529. 

Information about registering under the 

Family Business Act and other initiatives 

for family businesses can be found at www. 

familybusiness.org.mt MBR 

Credit: DOI/BOV 

CASA AMALIA 

IN GOZO 

The Minister for Gozo the Hon Dr. Justyne 

Caruana recently inaugurated Casa Amalia, a 

new home for private elderly people located 

in the heart of Victoria, Gozo. 

The Minister for Gozo the Hon Dr. Justyne Caruana unveiling the plaque 

Casa Amalia, Victoria, Gozo 

During the official inauguration of Casa Amalia, 

the Ministry for Gozo Justyne Caruana said 

that the opening of this house means that 

this is the first time that the private sector 

in Gozo is investing in services for the home, 

and senior elderly persons. It means that 

with the presence of the private sector in this 

field, the Government can also increase the 

services offered by it. In fact, the Ministry for 

Gozo entered into an agreement to purchase 

professional services from Casa Amalia, which 

will be specializing in treating the family. The 

Minister for Gozo said that the Government 

is committed to creating 500 new people for 

the elderly in Gozo during this legislature, as 

promised in the electoral manifesto, and as it 

has done in the budget that was presented. 

This sector In Gozo saw an increase in its 

allocation. 

The Minister for Gozo the Hon Dr. Justyne 

Minister Caruana Caruana cuttung said the that ribbon Casa Amalia will 

play an important role as this home is at the 

heart of the Victoria City community and thus, 

the elderly will be being treated in the heart 

of the community 'and this respects the policy 

that Government is embarking on in this 

sector to keep our elders in the community 

as close as possible. Justyne Caruana thanked 

iCare Ltd. for their commitment in the field of 

the elderly especially in the area that will not 

only provide services but also create new jobs. 

Casa Amalia has 23 beds spread over three 

floors and offers facilities for both couples 

and single people. The rooms are all equipped 

with modern facilities that ensure care of 

quality and dignity to the elderly. The home 

is thought to welcome the first elders in the 

coming weeks. MBR 

Ritratti - MGOZ 


45


EU: ENVIRONMENT 

Parliament and Council agree drastic 

cuts to plastic pollution of 

environment 

By Baptiste Chatain 

Photo: plastic products covered by these restrictions constitute 70% of all marine litter ©AP images/ 

European Union - EP 

• Single-use cutlery, cotton buds, straws 

and stirrers to be banned from 2021 

• Oxo-plastics and certain polystyrene 

also banned 

• A reinforced application of the “polluter 

pays” principle 

Single-use plastic items such as plates, 

cutlery, straws and cotton buds, will be 

banned in the EU under plans provisionally 

agreed between Parliament and Council, 

on Wednesday. 

Lead MEP Frédérique Ries (ALDE, BE) said: 

"Citizens expected only one thing from the 

European Union, that it adopts an ambitious 

directive against disposable plastics 

responsible for asphyxiation of the seas and 

oceans. This is done with our agreement 

closed at 6:30 this morning. It will reduce 

the environmental damage bill by €22 billion 

- the estimated cost of plastic pollution in 

Europe until 2030.” 

"Europe now has a legislative model to defend 

and promote at international level, given 

the global nature of the issue of marine 

pollution involving plastics. This is essential 

for the planet and this is what millions of 

concerned Europeans are asking us to do.” 

The following products will be banned in 

the EU: 

• Plastic cutlery (forks, knives, spoons 

and chopsticks) 

• Plastic plates 

• Plastic straws 

• Cotton bud sticks made of plastic 

• Plastic balloon sticks 

• Oxodegradable plastics and food containers 

and expanded polystyrene cups 

The provisional agreement also provides for: 

• A reinforced application of the polluter 

pays principle, in particular for tobacco, 

through the introduction of extended 

producer responsibility (EPR) 

• An EPR regime for fishing gear to 

ensure that manufacturers, and not 

fishermen, bear the costs of collecting 

nets lost in the sea 

• A 90% collection target for plastic 

bottles by 2029 

• A 25% target for recycled content in 

plastic bottles by 2025 and 30% by 

2030 

• Mandatory labelling on the negative 

environmental impact of cigarettes 

with plastic filters thrown in the street, 

as well as for other products such as 

plastic cups, wet wipes and sanitary 

napkins 

Next steps 

The provisional agreement will have to be 

endorsed by both Parliament and Council to 

become law. The Environment committee 

will vote on the text in January 2019. 

Background 

According to the European Commission, 

more than 80% of marine litter is plastics. 

The products covered by these restrictions 

constitute 70% of all marine litter items. 

Due to its slow rate of decomposition, 

plastic accumulates in seas, oceans and on 

beaches in the EU and worldwide. Plastic 

residue is found in marine species – such as 

sea turtles, seals, whales and birds, but also 

in fish and shellfish, and therefore in the 

human food chain. While plastics are considered 

a convenient, adaptable, useful and 

economically valuable material, they need 

to be used better, re-used and recycled. 

When littered, the economic impact of plastics 

encompasses not just the lost economic 

value in the material, but also the costs of 

cleaning up and losses for tourism, fisheries 

and shipping. MBR 

Press service 

European Parliament 

Credit: Envi-Press/EU 

46

LIBYA: INDUSTRY & TRADE 


Libya Falls in Ease of Doing Business Index 

By John Lee 

Libya has been ranked 186th out of 190 

countries in the World Bank‘s recent Doing 

Business 2019 report, down from 185th 

place the previous year. 

Top of the list were New Zealand, Singapore 

and Denmark, with last place going to 

Somalia, just behind Eritrea and Venezuela. 

Iran ranked 128th, with Iraq 171st. 

Doing Business measures regulations 

affecting 11 areas of the life of a business. 

Ten of these areas are included in this year’s 

ranking on the ease of doing business: 

starting a business, dealing with construction 

permits, getting electricity, registering 

property, getting credit, protecting minority 

investors, paying taxes, trading across 

borders, enforcing contracts and resolving 

insolvency. Doing Business also measures 

labor market regulation, which is not 

included in this year’s ranking. 

Training on Medicines Forecasting and 

Quantification; FAO organizes a Training 

Workshop on Animal Health 

Air Malta may be 

resuming Libyan flights in 

2019 By John Lee 

Air Malta is reportedly considering resuming 

scheduled passenger flights to Libya in 2019. 

According to a report from Malta 

Independent, the proposed service may 

operate between Malta International Airport 

and Tripoli Mitiga. 

(Source: Malta Independent) 

Libya reportedly plans to 

more than double its oil 

production by 2021 

According to Reuters, National Oil Company 

(NOC) chairman Mustafa Sanalla told a news 

conference that output would reach 2.1 

million barrels per day (bpd) if security and 

stability are strengthened. 

Current output is around 953,000 bpd, less 

than its pre-civil war capacity of 1.6 million 

bpd. MBR 

Credits: Libya Business News 

(Source: World Bank) 


47


GAMING 

The MGA implements First Phase of its Sandbox 

Framework for the acceptance of VFA and the 

use of DLT within the Gaming Industry 

As announced earlier in 2018, the Malta 

Gaming Authority has launched the first 

of two phases of its Sandbox Framework 

for the acceptance of Virtual Financial 

Assets (VFA) and the use of Distributed 

Ledger Technology (DLT) within the Gaming 

Industry on 1 January 2019. 

During this phase, the Authority will 

be accepting applications for the use 

of DLT assets, directly or through third 

party service providers, by its respective 

licensees. This phase is planned to last for 

a period of 10 (ten) months, subject to an 

extension if deemed fit by the MGA. 

The Authority has also updated its Licensee 

Relationship Management System (LRMS) 

to allow: 

• New operators to apply for approvals 

for the use of DLT assets as part of a 

New Licence Application; 

• Existing licensees to apply for 

approvals for the use of DLT assets 

through the application type – New 

or Change in Payment Methods / 

Financial Management Information; 

and 

• Existing licensees participating in the 

sandbox environment to report VFA 

player liabilities through the monthly 

Player Funds Report. Licensees will 

also need to report any failed return 

transactions, with respect to any 

invalid deposits. 

An approval to participate in the Sandbox 

Framework is conditional on the applicant 

holding the relevant licence issued by 

the MGA, without prejudice to any other 

regulatory requirements stemming from 

other applicable legislation, including but 

not limited to the VFA Act and regulations 

issued thereunder. 

Kindly contact the Innovation Team on 

innovation.mga@mga.org.mt for any 

queries related to this phase of the 

Sandbox Framework. 

Best Regards, 

Malta Gaming Authority 


Copyright © 2018 Malta Gaming Authority, 

All rights reserved. 

48

WORLD ECONOMIC FORUM SURVEY 


THESE COUNTRIES HAVE THE 

HIGHEST 

MINIMUM 

WAGES 

By Emma Charlton 

Minimum wages offer a route out of poverty, but they aren’t without controversy. 

Image: REUTERS/Francois Lenoir 

Where should workers move to in order to 

earn the best minimum wage? 

The answer is Australia or Luxembourg, 

according to data from Germany’s 

Wirtschafts-und Sozialwissenschaftliches 

Institut (WSI), which compared pay in 

different countries on a purchasing-power 

basis. 

The hourly rate in Australia yields the 

equivalent of 9.47 euros (US$10.78) of 

purchasing power, according to the report, 

almost six times that of Russia’s, which is 

worth only 1.64 euros ($1.87) in purchasing 

power terms. European nations made up the 

rest of the top five; while Brazil, Greece and 

Argentina were among the lower earners. 

between the Fair Work Commission, that 

sets the rate, and the unions who want 

more. 

Those in favour say businesses have a 

responsibility to pay their workers enough to 

live on, while those against argue that a high 

minimum wage destroys jobs and hampers 

entrepreneurship. A report earlier this year 

by the Institute for Fiscal Studies warned 

that a rise in the living wage could expose 

more jobs to automation. 

Academic studies have been mixed, calling 

into question long-held ideas that minimum 

pay thresholds lead to job cuts and fewer 

hours offered to employees, while also 

harming small businesses and pushing up 

prices. 

In reality, many minimum-wage earners in 

developed nations work in the service sector, 

where it can be easier to pass pay increases 

on to customers via higher prices. And some 

companies don’t mind paying more because 

it lowers staff turnover, lessening outlay on 

recruitment and training. 

Even so, there’s regional variation. In the 

US, the threshold varies by state, with some 

areas planning to boost their minimum 

wage to as much as $15 an hour. Cities tend 

to be where pay levels rise faster, because 

consumers can tolerate higher prices. 

The cost of living also makes a difference. 

While the absolute level of pay in the US 

has risen in the past 50 years, workers are 

poorer because increases haven’t kept pace 

with inflation. 

There’s still some way to go in researching 

Image: WSI data, World Economic Forum 

Supporting low-paid workers is a key 

objective for governments around the 

world, particularly after the financial crisis 

exacerbated inequality in many countries. 

While minimum wages offer one route out 

of poverty, they aren’t without controversy, 

often sparking politically charged debates 

and generating headlines. 

Recently, Spain’s government said its 

minimum wage will jump by 22% in 2019, 

the biggest annual increase in more than 

40 years, while French President Emmanuel 

Macron said his nation’s threshold will 

increase as well. Even in Australia, which 

has one of the highest levels, there’s tension 

"Thirty years ago, most 

economists expressed 

confidence in surveys that 

minimum wages had a clear 

negative impact on jobs. 

That is no longer true today. 

“Thirty years ago, most economists 

expressed confidence in surveys that 

minimum wages had a clear negative impact 

on jobs. That is no longer true today,” 

Arindrajit Dube, a professor of economics at 

the University of Massachusetts at Amherst 

said in an NPR podcast. “The weight of the 

evidence to date suggests the employment 

effects from minimum wage increases in the 

US have been pretty small; much smaller 

than the wage increases.” 

Wage increases haven’t kept up with inflation. 

Image: US department of Labor 

and exploring the effects of minimum wages 

and their impact on the job market. Keeping 

track of the evolution of these thresholds 

relative to median wages may offer a guide 

to how much they can rise without leading 

to visible job losses, but most researchers 

agree that more work is needed. “The 

minimum wage has a much bigger bite in 

lower-wage areas,” Dube says. For him, it’s 

about keeping a close eye on the data to 

locate the "sweet spot, beyond which it may 

not be a good idea to increase further”. MBR 

Creditline: World Economic Forum 


49


NEWSMAKERS 

Minister for Foreign Affairs and Trade Promotion Carmelo Abela & Minister of 

Foreign Affairs of the Republic of Turkey Mevlüt Çavuşoğlu 

Malta and Turkey discuss bilateral ties, 

regional and international issues 

Minister for Foreign Affairs and Trade Promotion Carmelo 

Abela hosted his counterpart Minister of Foreign Affairs 

of the Republic of Turkey Mevlüt Çavuşoğlu during his 

official visit to Malta. “This visit is a timely opportunity to 

reaffirm our commitment to our bilateral relations and 

the consolidation of the already excellent political and 

commercial ties between two countries.” 

During a warm and frank exchange, Minister Abela stated 

that, “our strong relations were given further impetus 

through our collaboration on several fronts and the everincreasing 

commercial exchanges between Malta and 

Turkey. This visit will surely encourage us to tap further 

into the potential of developing political, economic, trade 

cultural and social relations.” 

The two ministers discussed issues of mutual interest 

in relation to the Euro-Mediterranean region, other 

regional matters and multilateral issues, including the 

developments in Libya, Syria and the Middle-East, as 

well as the EU accession process of Turkey, common 

challenges, and cooperation opportunities in the 

Mediterranean. 

Minister Abela and his counterpart also brought up the 

issue of migration. Like Malta, Turkey understands very 

well the ramifications that migration brings. “We believe 

that unity, solidarity and resilience through proportional 

burden-sharing are the key, and we truly appreciate 

Turkey’s efforts for hosting Syrian refugees and other 

migrants from other countries like Afghanistan and 

Pakistan”, said Minister Abela. 

Discussions also focused on the flourishing trade and 

investment flows. The cooperation between the two 

countries increases the two-way trade between Malta 

and Turkey. Minister Abela said that the target is to 

intensify our commercial ties with a prospect of rendering 

our trade volume closer to the $1 billion target. In this 

regard, both parties discussed the boosting commerce 

through a string of repeat businesses to heighten thriving 

patterns in bilateral trade. 

Political consultations like these serve our purpose to 

build stronger bridges of affinity between Malta and 

Turkey. MBR 

Credit: DOI/THE MINISTRY FOR FOREIGN AFFAIRS AND 

TRADE PROMOTION 

Malta-Algeria Joint Commission 

Malta-Algeria Joint Commission convenes 

after thirty years 

The fifth session of the Malta-Algeria Joint Commission 

was convened in Malta from 18 to 19 December 2018. 

The Joint Commission was co-chaired by Minister for 

Foreign Affairs and Trade Promotion Carmelo Abela and 

Minister of Energy of the People’s Democratic Republic of 

Algeria Mustapha Guitoni. This session brought together 

more than 50 technical delegates from various sectors to 

discuss the enhancement of cooperation and exchange 

of expertise in a number of fields of mutual interest 

including, health, the environment, energy, water, 

education and training as well as economy, industry and 

commerce. 

The re-activation of the Joint Commission was an 

important milestone as it has been re-activated after an 

absence of 30 years. 

A bilateral meeting between the two Ministers was 

also held at the Ministry for Foreign Affairs and Trade 

Promotion. In highlighting the excellent relations that 

exists between Malta and Algeria, Minister Abela said, 

“We need to continue following up on these technical 

talks with a view to further enhance the existing 

ties between both countries at all levels, including 

people-to-people contacts and commercial exchanges.” 

The spirit of affinity and cooperation at the bilateral 

levels is also reflected at the regional one. Malta and 

Algeria currently hold the co-Presidency of the 5+5 

Western Mediterranean Dialogue. Both sides agreed to 

continue dedicating their efforts in ensuring that issues 

pertaining to the Mediterranean region will be given due 

prominence. In this vein, Malta looks forward to hosting 

the 15th Session of the 5+5 Foreign Minister Meeting 

that will take place from 17 to 18 January 2019, and 

which it will co-chair with Algeria. 

Following the bilateral meeting, the two Minister 

signed the following texts; the Agreed Minutes of the 

Fifth Session of the Malta-Algeria Joint Commission, 

the Agreement in the Veterinary Health Sector, the 

Memorandum of Understanding in the Field of Health 

and the Memorandum of Understanding in the areas 

of Plant Protection and Plant Quarantine. This was then 

followed by a press conference. MBR 

Credits: DOI 

Multilateral Convention to Implement Tax Treaty Related Measures to 

Prevent Base Erosion and Profit Shifting (MLI) 

Malta ratifies the Multilateral Convention 

to Implement Tax Treaty Related Measures 

to Prevent Base Erosion and Profit Shifting 

The Secretariat of the Organisation for Economic Cooperation 

and Development formally acknowledged 

receipt of the instrument of ratification of the Multilateral 

Convention to Implement Tax Treaty Related Measures to 

Prevent Base Erosion and Profit Shifting (MLI), which was 

deposited by Malta today together with the relevant list 

of reservations and notifications, following signature by 

Minister for Foreign Affairs and Trade Promotion Carmelo 

Abela. 

Minister Abela stated that the ratification of this 

convention underlines the active role that Malta plays in 

the development and implementation of international 

standards in taxation, good governance, together with 

the government’s determination to effectively fight all 

types of abuse of tax systems. 

The MLI has the objective of offering tangible solutions 

for governments to close the gaps in existing international 

tax rules by transposing results from the OECD/G20 

BEPS Project into bilateral tax treaties worldwide. The 

MLI will modify the application of thousands of bilateral 

tax treaties concluded to eliminate double taxation, 

and implements the agreed minimum standards to 

counter treaty abuse and to improve dispute resolution 

mechanisms while providing flexibility to accommodate 

specific tax treaty policies. MBR 

Mgarr Harbour, Gozo 

Good Christmas for business in Gozo: 

More than half a million people cross the 

channel during Xmas holidays 

The popular program 'Christmas in Gozo' ended with 

the arrival of the Three Slaten Maġi in Betlehem in 

Ghajnsielem. For another year, business in Gozo has 

experienced very good results thanks to the strong 

investment made by the Ministry for Gozo at this time 

of year. 

From statistics issued by the Gozo Channel, it is clear 

that during the month of December 2018 until 6 January 

2019, they crossed in total 501,907, passenger and 

156,343 vehicles compared to 464,837 passengers and 

141,349 vehicles that crossed the lines in f this same 

period last year. This means that there was an increase 

of 8% on the number of passengers and an increase of 

11% in the vehicles that crossed the line. The busiest day 

was Sunday, December 30, 2018, with a total of 25,186 

passengers and 5,670 vehicles on 76 trips operated by 

the Gozo Channel company. 

The Minister for Gozo Dr. Justyne Caruana welcomed 

these encouraging figures where Gozo saw a strong influx 

of tourists, both Maltese and foreign, who chose Gozo 

as their destination for these holidays. Caruana said that 

this influx and increase in numbers is not a coincidence 

but thanks to the work of the Ministry for Gozo that 

acknowledged a huge program during these days of joy, 

which program spread across Gozo and that it surely hit 

tastes of everyone. 

The Minister for Gozo stated that the owners of 

establishments and restaurants were very satisfied 

with the influx of people in this period and praised the 

structured and thoughtful way of how the program was 

worked on, Ministry for Gozo. Caruana said that these 

results fill up with courage to organize more cultural 

level events in Gozo in the next few days and months. 

Minister Caruana recalled how this cultural program has 

already been launched which program is available on the 

visitgozo.com site 

The CEO of the Gozo Tourism Association Joe Muscat said 

that on these festive days the tourism performance in 

Gozo was a very good one. From reports we have from 

various categories in the tourism sector on the Gozitan 

island, it seems that the Christmas period and the first 

of the year were the best in recent years. The number 

of visitors in Gozo was evident with the Gozitan hotels, 

which reported a very good demand for accommodation, 

while the farms also reported that they had a good 

occupation especially at the end of the year. The demand 

in the accommodation was from both the domestic 

market and the foreign market. Another sector that 

reported a good holiday period was that of restaurants. 

This category had very demanding days during the week 

between Christmas and New Year. 

Joe Borg, on behalf of the Gozo Business Chamber, said 

that the 'Christmas in Gozo' campaign organized by the 

Ministry for Gozo has definitely met its expectations. Borg 

said that Gozo was advertised as the ideal place for a 

person to enjoy these festive days, which definitely had a 

positive impact. MBR 

Credits/Photos: MGOZ 

50

THE BREAKTHROUGH LEADERSHIP CONFERENCE 2019 

Friday 29 th March, 2019 

The Palace, Sliema 

THE BREAKTHROUGH 

LEADERSHIP 

CONFERENCE 

AN EXPERIENCE THAT WILL 

CHANGE YOUR LIFE! 

• LEARN CRITICAL 

LEADERSHIP SKILLS – 

Principles of Highly Successful 

life. 

• SOLVE YOUR MOST 

COMPLEX PROBLEMS & 

CHALLENGES – Use process to 

solve even the most complex 

problems and challenges. 

• TAKE YOUR BUSINESS TO 

THE NEXT LEVEL - Learn a 

to grow your team and 

organization. 

• AVOID THE MEDIOCRITY 

TRAP - Discover what high 

achievers do to breakthrough 

mediocrity and achieve their 

dreams. 

• BUILD TRUST AND ATTRACT 

LOYAL CUSTOMERS - Identify 

ways to create rewarding relationships 

and a fiercely loyal 

customer base. 

• ALIGN YOUR TEAM AND 

ORGANIZATION - Use 

Exhibiting at the Show 

By exhibiting at the Breakthrough Leadership Conference 2019, you will: 

• Meet hundreds of potential buyers face-to-face over two days. 

• Raise your profile in a competitive market. 

• 

• 

from prospective purchasers. 

• Network with the media, your customers and other exhibitors. 

Why Exhibit? 

Exhibiting is one of the most efficient, effective and successful marketing 

activities available to you. Having a presence will give you exposure to an 

audience of over 7,500 marketing directors, executives and decision makers, 

highly targeted visitors on a face to face basis. 

• A launch pad to an introduction to a Leadership high level course. 

• 

leaders. 

• Video link with EU Vice President of the European Commission – Better 

Fundamental Human Rights. 

TOPICS: 

• Leading people in a technological world 

• How Leaders build winning teams 

• Leading Millennials- the new challenges 

• 

• 

organization from top to 

SEE YOUR LIFE 

AND YOUR POTENTIAL 

THROUGH A COMPLETELY NEW LENS! 

bottom. 

• EFFECTIVELY BALANCE 

YOUR HECTIC SCHEDULE & 

PRECIOUS TIME - Prioritize 

your time, reduce stress, and 

find balance. 

• CREATE A HIGH- 

PERFORMANCE CULTURE 

- Learn how to create a highteam. 

• PLAN & EXECUTE 

EFFECTIVELY - No more New 

Years Resolutions. Create an 

actionable plan to achieve your 

vision. 

Contact: 

E: margaret@mbrpublications.net 

M: 9940 6743 / 99196510

MBR_ISSUE 47_JAN_LR

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