Institute of technology Sligo

Malta


Group 17

Third year:

  • Adrien Hautavoine
  • Damien Serre
  • Juan J. Solaguren Gualda

Second year:

  • Francesco Puddu

First year:

  • Niall Wallace

Contents:

  1. General overview and Economy:

-key statistics

-key industries, service sectors, role of agriculture, main trading partners,role of FDI

-developments over the last decade

-present economic situation

-challenges facing this economy

2. Politics

-history and geography of the state

- particularities of its government and political conditions

-developments over the last decade

- particular challenges facing this country

3. The country in question and the EU

-history of its relationship to the EU

- cultural factors

- voting weight and coalitions of likr-minded states

- attitude to the New Constitution

-Levels of support for the EU and for further European integration

4. Waste Policy in the state and implementation of EU Directives

-present waste policy

-Analysis of transposition and implementation

GENERAL OVERVIEW AND ECONOMY OFMALTA


The Maltese flag was supposedly based on an 11th-century coat of arms, and a red flag with a white cross was used by the Knights of Malta from the Middle Ages. The current flag dates from independence within the Commonwealth (Sept. 21, 1964). The George Cross was granted by the British for the heroic defense of the island in World War II.

Malta

  • Population: 397,000 (UN, 2005)
  • Capital: Valletta
  • Area: 316 sq km (122 sq miles)
  • Major languages: Maltese, English
  • Gross domestic product (1995): U.S.$3,241,600,000 (U.S.$8,712 per capita).
  • Major religion: Christianity
  • Life expectancy: 76 years (men), 81 years (women) (UN)
  • Monetary unit: 1 Maltese lira = 100 cents
  • Main exports: Machinery and transport equipment
  • GNI per capita: US $13,590 (World Bank, 2006)

President: Edward Fenech Adami

Prime minister:Lawrence Gonzi

DEMOGRAPHIC/VITAL STATISTICS: Density; 1,130 persons per sq km (2,926 persons per sq mi) (1991). Urban-Rural; 85.3% urban, 14.7% rural (1985). Sex Distribution; 49.3% male, 50.7% female (1990). Life Expectancy at Birth; 73.8 years male, 78.0 years female (1989). Age Breakdown; 24% under 15, 22% 15 to 29, 24% 30 to 44, 15% 45 to 59, 11% 60 to 74, 4% 75 and over (1990). Birth Rate; 15.2 per 1,000 (1990). Death Rate; 7.7 per 1,000 (1990). Increase Rate; 7.5 per 1,000 (1990). Infant Mortality Rate; 11.3 per 1,000 live births (1990).

INDUSTRIES: Malta’s leading industries are shipbuilding, maintenance, and repairs, food processing, electronics, footwear, textiles and clothing. Malta’s industries also produce beverages, tobacco, lace, metals, rubber products and plastic goods.Industries production cover the 26% of GDP (1999).The manufacturing sector grew by 17% from 1995–99. Manufacturing output rose 3% in 2001.

FINANCIAL SERVICES: this is the fastest growing sector within the last 10 years. The positive legislative framework helped the surprising growth of financial services which cover nowadays the 12% of GDP and is expected to contribute 25% to Malta’s GDP within the next decade; This sector counts already more than 5000 employees in the finance industry, it has been chosen by the government for sustaining development. Indeed, this purpose is clearly evident in the legislation, regulation and supervisory set up introduced in the last few years and the continuous evaluation and updating of legislation and regulation by the Malta Financial Services Authority ensures that Malta remains in the optimum position to maximize any opportunities presented.

AGRICULTURE: Malta produces only about 20% of its food needs, in fact agriculture and fisheries together cover barely the 2.8% of GDP.

MAIN TRADING PARTNERS: Malta’s main trading partners are: Italy, Germany, UK, USA, France. Concerning with imported goods these are some statistics that can help us to understand Malta’s most important partners: Italy 19.3%, France 17.8%, UK 12.4%, Germany 10.5%, US 8.9% (1998).Most important exports partners and rates: France 20.7%, US 18.1%, Germany 12.6%, UK 7.7%, Italy 4.8% (1998).

ROLE OF FDI: Nowadays Malta seeks FDI (Foreign Direct Investments) to improve its economic growth. The main sectors where they want these investments to be concentrate are manufacturing, trans-shipment and servicing industries especially pharmaceuticals, and most of all financial services. Foreign investment also plays an important role in the Government's policies to reduce the influence of the state in the economy and increase private sector activity. Recently private investments have been strongly encouraged by the privatization of some former state firms, this happened to make possible for the country the entrance in the EU: the market must be open.

DEVELOPMENTS OVER THE LAST DECADE: . During the 1990s, Malta's economic rapid growth has been helped by a favourable international economic climate, both domestic demand and exports of goods and services contributed to this favourable performance with an high rate of foreign export oriented investments. Following September 11, 2001 Malta’s leading sector of tourism slowed down, nevertheless the economy has maintained a relatively low rate of unemployment (5.5%).

PRESENT ECONOMIC SITUATION: Malta’s major resources are limestone, a favourable geographic location, and a productive labour force, has limited food and freshwater resources and, most of all, has no domestic energy sources as a result is 100% dependent on OIL. The economy also depends on international trade (since Malta is a trans-shipment point), on manufacturing (especially electronics), and tourism. Even if the resources of this tiny country are not huge, there are some competitive advantages that Malta can proudly show: thelocation as a Mediterranean hub with access to North African and Middle Eastern markets, its low cost base (salaries are 3.5 times lower than in Luxembourg and 2.5 times lower than in Ireland), its European time zone location, its highly skilled, English-speaking workforce, and its back office and IT capabilities.

CHALLENGES: Malta has recently liberalised some of its former state firms in order to prepare for membership in the European Union, which it joined in 2004. Two more challenges for the Maltese government are: the will to adopt the euro as the country's currency on 1 January 2008; the commercial exploitation of the continental shelf between Malta and Tunisia, particularly for petroleum exploration. The two countries are still discussing this issue.

GEOGRAPHY OF THE STATE: Malta is an archipelago in the central Mediterranean Sea, some 93 km south of Sicily. Only the three largest islands MaltaIsland (Malta), Gozo (Għawdex), and Comino (Kemmuna) are inhabited. The smaller islands, such as Filfla, Cominotto and the Islands of St. Paul are uninhabited. Numerous bays along the indented coastline of the islands provide good harbours. The landscape is characterised by low hills with terraced fields. The highest point is at Ta' Dmejrek on MaltaIsland at 253 metres (830ft) near Dingli. Although there are some small rivers at times of high rainfall, there are no permanent rivers or lakes on Malta. See map on top page.

HISTORY OF THE STATE: -In 1814 Malta officially became a part of the British Empire. - Due to its strategic position, Malta played an important role during World War II. - King George VI to award the George Cross to Malta on a collective basis on 15 April 1942, "to bear witness to a heroism and devotion that will long be famous in history". - Malta was granted independence on September 21, 1964 (Independence Day). Under its 1964 constitution, Malta initially retained Queen Elizabeth II as Queen of Malta, with a Governor-General exercising executive authority on her behalf. - On December 13, 1974 (Republic Day), it became a republic within the Commonwealth, with the President as head of state. - A defence agreement signed soon after independence (and re-negotiated in 1972) expired on March 31, 1979 (Freedom Day) when the British military forces were withdrawn. - Malta joined the European Union on May 1, 2004. It intends to join the Eurozone in 2008.

POLITICAL CONDITIONS: Malta is a republic, whose parliamentary system and public administration is similar to Westminster system. The unicameral House of Representatives, is elected by direct universal suffrage through single transferable vote every five years. The President of the Republic is elected every five years by the House of Representatives, his role is most ceremonial. The main political parties: Nationalist Party( is a Christian democratic party), and the Malta Labour Party(is a social democratic party).

PARTICULARITY: IMMIGRATION: During 2005, a total of 1800 immigrants reached Malta illegally. The impact is equivalent to that of an arrival of 369,000 illegal immigrants in Germany and other large EU member states. Since Malta is the southernmost tip of Europe the country is now dealing with such problems and probably will deal with them in the future.

DEVELOPMENTS OVER THE LAST 10 YEARS AND CURRENT ISSUES: in May 2005 the Maltese government entered ERM II (European Exchange Rate Mechanism), and on 1 January 2008 it will adopt the euro as the country's currency. Although Malta is now a member of the European Union, it is not a member of the Schengen Treaty yet. It is currently adopting Schengen regulations with the goal to be finished by 2007.