Ba 29 winter 2016

Agenda Business

The official publication of the Malta Business Bureau

ISSUE 29 Winter 2016 NEWSPAPER POST

a nni ve rs a ry SINCE 1996

Taking the lead of the EU Presidency: Will Malta deliver?

In this issue: Central Bank Governor Mario Vella discusses Malta’s banking sector and economy forecasts | Former Ambassador Salv Stellini traces his career over more than 50 years of service | Weighing in on the world of whisky ahead of the festive season | MBB News Updates

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Cover Story and became able to decide our fate with our Union counterparts, to 2017 where Malta is effectively leading a most important law-making arm of the Union. Historically, this is the culmination of the Maltese nation’s European vocation.”

viewingmalta.com

Taking the Torch in 2017 With little over a month to go until Malta assumes the Presidency of the EU Council for six months, Martina Said chats with MBB President Dr John Vassallo, Head of the EP Information Office in Malta Dr Peter Agius and Vice President of the EESC Stefano Mallia to find out what lies ahead for the country at the start of the new year.

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Taking on the Presidency of the EU Council is not a historical milestone in the annals of the EU,” says Malta Business Bureau President John Vassallo.

“All member states before us, starting from 1958, have had the honour and the obligation to assume this role.”

The EU enlargement of 2004 saw a number of small member states, some very small, join the Union, one of which was Malta. And while for these countries taking on the Presidency can appear to be more of a burden than an honour, past presidencies by countries even smaller than Malta have shown that these too can be successful.

“They have given the country an international profile and, assuming that each country in the Presidency at any given time acts with humility and courage to serve the common good and to promote the progress of the Union in the interests of all the 28 member states, then it can bring respect and trust from all the other member states,”

says Dr Vassallo. “Managing the Presidency can be a routine flow of already existing issues that have been managed by the preceding presidencies.

It can also be a dramatic and highly difficult period should the world face unexpected challenges during those particular six months. Each six-month Presidency faces its own particular challenges and, apart from those that are known – like the start of Brexit or the changes in the leadership of the USA that will occur in our six months – who knows what unexpected events can affect positively or disturb negatively the Maltese turn.”

Head of the European Parliament Information Office in Malta, Peter Agius, says that, with its centralised management systems, Malta seems to be well prepared for the Presidency, with high-level professionals in charge of problematic or challenging policy areas where Malta will need to drive an agreement within Council and with the European Parliament.

“The Presidency will have a huge impact on Malta's role within the EU context, simply because it will be the first real opportunity where we do not simply reap the benefits of the Union, as we have done so successfully since 1st May 2004, but we will now also contribute back with our creativity, resolute determination and leadership.

This will sensitise even further our own civil service to its European commitments and opportunities, at least for the coming generation,” he asserts.

Dr Agius adds that the political significance of the Presidency is that it is the concrete expression of the profound democratic ethos of the Union, whereby the largest member state and the smallest both have the same opportunity of leading the Council for six months. “The historical importance of this may be seen as the culmination of our independence, from a country under foreign rule, to a country declaring its independence in 1964, to our accession in 2004, where we put our self-determination into a higher level

Vice President of the Employers Group in the European Economic and Social Committee (EESC), Stefano Mallia, asserts that while there’s no doubt that taking on the Presidency is a historical milestone, what defines it as a successful one is another matter. “One could define a successful Presidency as one with no administrative hiccups or one whereby the host country successfully plays the role of an honest broker achieving agreement on some key controversial topic. Malta has a history of successfully hosting high-profile events, although this is somewhat unique in that it is a whole six months of meetings and events taking place non-stop.”

While agreeing that the Presidency is also a unique opportunity to raise the profile of the country in more ways than one, it also gives a certain unique political leverage at various levels. “From an institutional point of view, Malta will be at the very centre of some very interesting discussions concerning high-profile issues such as Brexit and immigration. But it will also see us handling some pretty technical (and sticky) dossiers such as that concerning the Common Consolidated Corporate Tax Base (CCCTB). At a lower level, it provides national and private organisations the opportunity to lead initiatives at a European level in their respective fields.”

Malta’s turn to assume the Presidency could present a golden opportunity

John Vassallo

for the country to shed light and stir debates on matters of regional interest.

However, as the experts assert, taking this path could have an adverse effect.

“A good or successful Presidency is one that is seen to be good or successful by the other 27 member states.

For this reason, it is normally held to be wiser to play a role in seeking and finding compromises amongst the 28 and to smoothen the path of existing dossiers towards final agreement and enactment, than to push local or regional issues for their own cause,” asserts Dr Vassallo.

Were such regional issues to be of general interest, Dr Vassallo continues, then it would not be amiss for Malta to put these on the agenda of the EU during its Presidency – such issues as finding an enduring and sustainable solution to the migration flows from the Southern and Eastern frontiers of the EU is a regional but also a common issue, for instance. “Promoting the Mediterranean as a sea of peace and cultural interaction amongst peoples through, for example, promotion of tourism in the region can also be considered in the common interest, though there may be opposition from other parts of the continent. Improving the competitivity of all regions within the EU by attempting to eliminate hurdles and obstacles to a level playing field amongst all businesses, especially SMEs in less favoured zones, can be another local but also a general issue that could be tackled.”

In general, Dr Vassallo asserts that it is advisable to avoid being parochial or regional when sitting in the Presidency chair. “In the long term, the present Government and all other governments that will follow, will gain much more by acting as a humble but efficient manager of the EU’s common agenda during the next six months, bringing benefits to all the member states, since, when the time comes, when Malta will need allies on issues to be managed by other Presidencies after ours, these will come to our assistance more readily than if we tried to push our own interests first today.”

He adds “the EU membership is a very long-term enterprise for us Maltese and we look forward to many Presidencies in the future for us and for our

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Cover Story children and grandchildren. The EU is a project bringing peace amongst nations, improved welfare and economic and social progress, and the wider and consistent application of the rule of law for all. We are not yet there on all these fronts and that is why we have to think long term on these occasions.”

Dr Peter Agius asserts that the issues which will dominate media and public attention during the Presidency will not necessarily be those where Malta may be leaving a concrete legacy. “Macro-issues like Brexit, the Union’s long-term budget and Panama Papers may dominate attention, however the real legacy that Malta will leave to the Union may be found also in the ‘smaller’ dossiers where the Council is truly the legislator with the European Parliament and where the prosperity and safety of the Union in the next decades will be decided. I am here referring to dossiers like the Posting of Workers Directive, the fight against terrorism, the return of irregular immigrants but also internal market dossiers which should guarantee Europe’s attractiveness as a business destination in the years ahead like the copyright reform, the Internet Sales Directive and the Waste Directive to mention a few.”

Stefano Mallia agrees that one must tread carefully when saying that Malta will be better placed to influence discussion. “In reality, as the country hosting the EU Presidency, we will need to take a very neutral role and cannot be seen to be favouring or pushing

national interests. This is not to say that the host country cannot influence the agenda. On the contrary, each EU Presidency presents its own work agenda which often reflects the strong or unique points of the country in question. In the case of Malta, there is no doubt that migration and the need to address the needs of the Mediterranean region will certainly feature in a prominent manner during the Maltese Presidency.”

Stefano Mallia He adds that, whether we like it or not, Brexit will dominate most of the headlines during the Presidency. “This does not mean that only Brexit will be discussed, but there’s no doubt that it is the single most controversial issue that will garner most airtime and column inches in the media. Malta, through the forthcoming EU Presidency, is however uniquely placed to play a crucial role in solving or seeking to solve these unprecedented challenges, both through its unique historical connections with the UK and through its first-hand experience and

drive for more tax fairness and transparency where at least two dossiers will depend on the Maltese Presidency: the Common Consolidated Tax Base Directive and the Country by Country Reporting Directive.”

understanding of the refugee crisis.”

Mr Mallia asserts. “The EU is currently going through huge turmoil with an uncertain future on the horizon. It is a period during which we, as the European Union, must take a serious look at what we are doing and how we are functioning because, unless we do so, we could be facing a bleak future both from an economic as well as a political point of view.”

Dr Agius is in agreement that, on a political level, Brexit will dominate, but believes that, on the ground, little will deter the teams of officials focusing on their dossiers. “What the Presidency needs to ensure is that those macro-political issues remain at their level and confined to their forum and do not trickle down to pollute progress in the sectorial areas. On a communication level, one should note, however, that an additional strategic effort will need to be deployed so that the results of the Maltese Presidency in the different sectors is properly communicated and is not overshadowed by the mentioned macro-political issues.”

On a national level, Maltese businesses also stand to gain from the Presidency, in more ways than one. Dr Vassallo asserts “we have a shorter and, traditionally, a more direct line of communication between Government and business in Malta. This will enable us to bring our thoughts, requirements and issues to the attention of the EU Presidency quickly and efficiently. We have already shown that this can be done – only recently in October, all the associ-

Peter Agius ations representing employers, companies, big and small, traders and retailers, hoteliers and restaurateurs, under the tutelage of the Malta Business Bureau, have prepared a common short document with an agenda and shared this with Government.”

Dr Agius adds that he’s convinced Malta will bring an additional level of caution and attention to the concerns of small businesses in particular, and a drive towards more openness in the single market. “This will be of direct benefit to Maltese businesses. Right now, Union agenda on the business side is dominated by the drive on the digital single market. There is political momentum there and Malta will need to exploit it to seal deals with the open dossiers in that area including content portability, digital sales and internet sales of goods,” he explains. “There is also political momentum in another area where Malta has resisted encroachments in the past in the Council and in the European Parliament – I am referring to the

Through his role within the European Economic and Social Committee (EESC), Mr Mallia is eager to work on a number of important dossiers that will also be discussed, but not necessarily concluded, during Malta’s Presidency.

“I will, together with my colleagues, be active in trying to influence these dossiers through our work in Brussels and in Malta. A number of meetings have already taken place involving key players within the EESC who have been holding high-level meetings locally with the aim of assisting Malta to push certain agenda items which indeed are of interest to the Maltese business community,” he asserts.

On a final note, Mr Mallia says that it’s important for Malta to look beyond the six months of its Presidency come January 2017. “Very often, when discussing the EU Presidency, we are focused on the six months ahead, but in reality, what we do over the next six months will have a bearing on our position within the EU for many years to come.

A successfully managed Presidency will raise our stock and provide us with a strong basis to forge important relationships that will prove very useful for us in the future.” BA

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Interview Photos: Melvin Bugeja

“We anticipate that our economy will continue to register an output surplus at least till 2018” Recently appointed Central Bank of Malta Governor Dr Mario Vella speaks to Sarah Micallef about his enthusiasm for the new role, amid his thoughts on the state of affairs of the banking sector and local economy.

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aving been appointed Governor of the Central Bank of Malta with effect from 1st July this year, Dr Mario Vella was previously Executive Chairman at Malta Enterprise for just over three years. “All of my professional and academic life prior to the Central Bank was focused on Foreign Direct Investment (FDI) and, more generally, what is quaintly referred to as the ‘real economy’,” he explains, showing enthusiasm for his new role.

“I finally have the opportunity to look more closely at the interfaces between monetary policy, financial stability and economic growth on the ground, both in Malta and across our borders,” Dr Vella maintains.

Sharing his views on the current state of affairs of the local banking sector, the Governor believes that the sector continues to remain sound, and feels that “the strong growth of the Maltese economy in recent years has further enhanced the resilience of our financial system.” In response to this, he explains that his focus will be on banks licensed in Malta that have strong links with the domestic economy.

“The core banks continue to be well capitalised and highly liquid,” Dr Vella continues, affirming that during 2016, they further strengthened their capital ratios. Meanwhile, “non-performing loans continued to decline as a result of strong economic performance, and particularly the recovery in the real estate market. At the same time, core banks enhanced their resilience to adverse shocks by increasing provisions, thus strengthening further their coverage ratio to their stock of non-performing loans,” he says. In the Governor’s view, this build-up of provisions and strengthening of capital has been possible because core banks

have been successful – through a business model focused on providing prudent financial intermediation using retail deposits – in sustaining growth and profitability. “Bank profitability continued to improve despite the challenges of a prolonged low interest rate environment worldwide,” he adds.

Indeed, the local banking sector in Malta seems to be enjoying positive results, mirroring the positive economic cycle that Malta is currently experiencing. Speaking in relation to

come and should be supported,” Dr Vella maintains.

The European Commission has recently given a greenlight to enable Malta to set up the Malta Development Bank, which will be the first financial institution of its kind locally. But is there a scope for such a banking structure in Malta? Having been, in the Governor’s words, the main promoter for the setting up of the Malta Development Bank (MDB), the Central Bank of Malta has been giving technical and logistical

“The strong growth of the Maltese economy in recent years has further enhanced the resilience of our financial system.” the way in which this growth is impacting local banks, Dr Vella asserts, “economic growth definitely helps the core banks because their business model is basically to service the domestic economy. Economic growth makes it easier for borrowers to honour their obligations. It also helps banks to reduce non-performing loans as rising demand for property renders possible the realisation of collateral on better terms. Better quality loan books and better results from their investment portfolio through capital gains on fixed income portfolios help banks to mitigate the expense of negative interest rates on their excess liquidity.”

Yet in the face of criticism that banks are not doing enough to facilitate business, start-ups and continued investment, I ask, what is his take? “The banks are understandably prudent, especially considering the regulatory framework and the low interest rate environment they operate in. Evidently a greater involvement of the banks in Malta’s economic development is always wel-

support to the Working Group tasked with the execution of the project for a number of years, and while the MDB is not intended to compete with commercial banks, it will aim to fill financing gaps that commercial banks do not or cannot address. “This is mainly related to SME financing on terms that the banks will not offer unless they benefit from risk enhancements through MDB platforms,” Dr Vella explains, adding, “this is basically what banks have been doing with the EIB/EIF through the Jeremie and Jamie platforms.

Now, through the MDB, the banks will have larger and more favourable credit enhancement platforms to facilitate access to credit to SMEs.” Apart from this, he maintains, the MDB will also participate directly in large scale infrastructure project finance, mostly on a PPP basis, on terms which are not currently in scope for commercial banks because of the equity-like features required by such financing, and the long-term nature of such investments. “In the end MDB’s success will be measured by its ability to stimu-

late investment through better financing packages,” he says.

And while Malta’s economic growth over the past few years is certainly impressive, with few signs that the cycle or mood is about to change,

cycle conditions. “We published our methodology earlier this year, including our most current estimates,” he says, likening these to the calculations made independently by the European Commission.

“Through the Malta Development Bank, the banks will have larger and more favourable credit enhancement platforms to facilitate access to credit to SMEs.” is there a chance that what Malta is currently experiencing is technically referred to as a boom? Dr Vella maintains that much the same as other central banks worldwide, the Central Bank of Malta closely monitors economic developments and has developed models that help to assess business

“These show that in 2015, Malta registered an output surplus for the first time in several years. This means that economic growth exceeded potential output, or the underlying increase in capacity. This, despite the fact that we estimate Malta’s potential output to be growing at the fastest rates

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Interview since the late 1990s,” he continues, pointing to two factors behind the acceleration. “On the one hand, we have had a very significant increase in our labour supply. On the other, our investment-to-GDP ratio has risen substantially. We anticipate that our economy will continue to register an output surplus at least till 2018. This contrasts with much of the euro area, where economic output remains below pre-financial crisis levels,” Dr Vella says.

Meanwhile, we’re all eager to see how Brexit will impact the economic and financial mood in Europe and how Brexit will impact the euro currency (particularly with regards to the sterling) in the medium to long term.

Speaking of the potential implications, the Central Bank of Malta Governor feels that as it stands, there is a high degree of uncertainty surrounding the terms at which the UK is likely to exit the EU. “The long-term political, institutional and economic consequences of the UK’s withdrawal will crucially depend on the arrangements govern-

ing the UK’s future relationship with the EU. Despite the strong historical ties with the UK, the share of Malta’s exports to the UK has been declining over time as we successfully diversified our economic base,” he maintains, adding that even when it comes to tourism, the share of those coming from the UK declined from 41 per cent in 2005 to 29 per cent in 2015.

“That said,” Dr Vella continues, “scenarios and simulations conducted by the Central Bank’s research staff focusing primarily on trade effects point to a possible slight Brexit-related decline in economic activity in Malta in the medium term. The results should, however, be treated with caution given the high degree of uncertainty surrounding the terms of the UK’s exit. Moreover, beyond the adverse effects from trade and the exchange rate, on the upside, Malta could also benefit if companies that seek to relocate outside the UK are attracted to Malta.” BA

“The long-term political, institutional and economic consequences of the UK’s withdrawal will crucially depend on the arrangements governing the UK’s future relationship with the EU.”

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Editorial Publisher Content House Group Mallia Buildings 3, Level 2, Triq in-Negozju Mriehel BKR 3000 Tel: (+356) 2132 0713 Email: info@contenthouse.com.mt www.contenthouse.com.mt

Joe Tanti

Equipping people with better skills The New Skills Agenda proposed by the European Commission aims to support people in developing a broad set of skills which will ultimately facilitate their access to the job market, a situation that is essential to boost employability, competitiveness and growth across the EU. Malta will need to make the most out of this European initiative to cope with outstanding challenges and further improve its economic position and long-term outlook.

The right skills are needed to strengthen citizens' employability and social inclusion, and are also crucial for the innovation and attractiveness of business and enhancement of human capital.

According to the European Union, 40 per cent of EU businesses encounter difficulties in finding staff with the necessary skills, while, at the same time, 70 million Europeans lack adequate reading and writing competences and more than half of the European long-term unemployed labour force is considered as low-skilled. Furthermore, at the European Parliament of Enterprises event held in October, 75 per cent of participating entrepreneurs claimed that they are finding it more difficult today to employ people with the right skills than they did five years ago.

Common EU labour markets’ issues have prompted the European Commission to address the identified gaps with ‘A New Skills Agenda for Europe’, which proposes actions aimed at improving people’s basic skills, mak-

ing them more visible and comparable, and making better use of those skills already available on the market.

In this sense, it is fundamental for EU countries and stakeholders to improve the quality of skills and their relevance with the labour market since employability, competitiveness and growth greatly depend on the development of necessary skills.

Additionally, this guarantees social inclusion and boosts national wealth.

Over the past years, Malta has been investing significantly in its education and training programmes, however, despite recent progress, there is still work to be done. The early school leaving rate remains high, the basic skills proficiency is poor, when compared to international standards, and the supply of skills from the vocational education and training system (VET) has not yet adjusted to labour market requirements.

We believe that the necessary path to be taken to mitigate these challenges is to focus on promoting Digital and

STEM (science, technology, engineering and mathematics) skills, broadening vocational training opportunities and enhancing cooperation between businesses, the public sector, schools and academia.

The digital economy is rapidly developing globally as the most relevant driver of innovation and growth. This is the future, and European companies, particularly SMEs, would benefit in taking full advantage of new digital opportunities. In this regard, it is extremely important that a comprehensive national skills strategy is adopted. Moreover, it is equally imperative that e-skills are given adequate clout in national curricula and lifelong learning programmes as well as specific and focused vocational training.

A broadening of vocational training opportunities at all levels and across different pathways, including entrepreneurial and innovation-oriented skills, as well as a wider focus in STEM skills, is key in modelling the training system to adjust to the labour market.

This will create higher-standard alter-

natives for early school leavers and elevate the level and quality of people’s skills. As a result, we can expect an increase in the take-up of practical, work-based training.

Malta Business Bureau Cornerline, Level 1, Dun Karm Street, Birkirkara, BKR 9039 Tel: 00356 2125 1719 Email: info@mbb.org.mt infobrussels@mbb.org.mt www.mbb.org.mt

The Malta Business Bureau is a nonprofit making organisation acting as the European-Business Advisory and Support Office of the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association. The MBB has two offices, the Head Office in Malta and the Representation Office in Brussels.

Editor: Joe Tanti

Lastly, broader cooperation among stakeholders would bring a significant improvement in the VET system, making it more consistent as it cultivates skills intelligence. This is in line with the Commission’s Blueprint for Sectoral Cooperation on Skills, which will design sector-specific solutions, based on industry inputs, and will initially be piloted in six sectors that are experiencing severe skills shortages, such as tourism. We believe that this is an opportunity for the hospitality sector to overcome the existing skills gaps.

Hence, by upgrading the VET system and promoting vocational standards and qualifications, Europe will be on the right track to improving its longterm outlook and economic position as a global player.

Deputy Editor: Martina Said Design: Nicholas Cutajar Editorial Team: Ana Vella, Daniel Debono, Sarah Micallef, Jo Caruana and Marie-Claire Grima Brand Sales Executive: Amy Schembri Advertising Sales Coordinators: Lindsey Napier and Marvic Cutajar Business Agenda is the quarterly publication of the Malta Business Bureau.

It is distributed to all members of the Malta Chamber of Commerce, Enterprise and Industry, all the members of the Malta Hotels and Restaurants Association, and to all other leading businesses by Mailbox Distribution Services, part of Mailbox Group.

Business Agenda is also distributed by the Malta Business Bureau to leading European and business institutions in Brussels.

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Lifestyle

A time of giving Christmas is a time of giving, and in the corporate world, selecting the right gifts and festive tokens for your business associates is all about making the right impression and choosing a gift that you’d be happy to receive yourself. From spa visits to luxury products, Sarah Micallef looks into the perfect corporate gifts to impress this festive season.

EXCLUSIVE PERKS AND SAVINGS Everyone loves a good discount – even more so when it allows you to treat yourself during a season that can be stressful on both body and budget. This is what makes CorporateVIP a great option for a corporate gift, offering an exclusive membership designed for employers to offer their employees perks, benefits and rewards.

CorporateVIP Managing Director Nicholas Ponniah breaks down the membership, which includes three portals – local offers, online cashback and travel – each with exclusive savings.

“The local offers portal features over 250 local discounts on restaurants, business and personal services, entertainment and leisure, health and fitness, spa and beauty and retail from some of Malta's best merchants,” he explains. Meanwhile, “the online cashback portal is where the member gets real cash back on all online purchases at over 1,600 online brands and retailers they know and love,” and the travel portal offers “priv-

A LITTLE LUXURY Boasting a market leading gift hamper collection which is launched specifically for the festive season, Cleland & Souchet is the go-to for many companies looking to give a little luxury come Christmas time. From beautiful home accessories to unique and distinctive personal gifts from an array of exclusive brands, Cleland & Souchet Director Fabrizia Cleland maintains, “the festive season is the high point of our year, and we work hard to excel in the selection of gifts we offer our clients.”

But what makes a Cleland & Souchet gift, a great gift? “We pride ourselves on offering exceptional brands which are exclusive to our shop, and we use our own taste and experience to ensure that each and every product is special in some way,” Fabrizia explains, adding that their hampers are made up of genuine fine foods and

great wines, and presented in customised luxury gift box packaging. “All the products are directly imported by us, thereby guaranteeing exclusivity, quality and exceptionally good value for money,” she continues.

The luxury brands at Cleland & Souchet offer a choice of gifts for the person who has it all, while the home brands and hampers have a broader appeal. “We have hampers which are ideally suited to corporate clients who wish to give a gift that stands out from the ordinary, and we have others which are perfectly suited to friends and family with a taste for the good things in life – fine foods, great wines, premium spirits, etc,” says Fabrizia. Price-points also vary depending on your budget, ranging from €28.50 to €250 for the food and wine hampers, while wine hampers range between €12 and €480.

ileged prices on our corporate hotel booking site and Sixt Car Rental worldwide. Plus cash back on airlines, hotels and holidays, and exclusive discounts on all Air Malta direct flights.”

“A Corporate VIP membership is the best way to save and get exclusive privileges and discounts both nationally and internationally, and is designed especially for employers, employees, working professionals and entrepreneurs,” Nicholas maintains. Working professionals and entrepreneurs can get individual access to the CorporateVIP platform for a membership fee of €49 per year, and there are also packages available for the employer or HR manager who wants to reward their team, based on the amount of employees the company has. So far, Corporate VIP is proud to be working with leading companies like Betsson, FIMBank, Air Malta, MITA, MSV Life, Ascent Software, Satabank, Shield Consultants, DHL, PTL International and more.

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Lifestyle USEFUL AND BEAUTIFUL Whether it is a very special writing instrument, an office accessory in hand-crafted leather, or a personal accessory for a man or a woman, a Mont Blanc product will bring a sparkle to any one this Christmas. Just ask Josette Grech Marguerat, Mont Blanc Brand Manager at Diamonds International.

“You want to make your special clients remember you and your company throughout the coming year and beyond; you want to make them feel valued; you want to forge a bond of mutual esteem. What better way to do this than to give them a product of class that is at once

useful and beautiful – a constant companion, a pen or a wallet that, with elegant understatement, expresses your recognition of the recipient’s professional position and of their value to your company. The recognisable white star, the poised design, the sheer elegance – all a clear and unforgettable symbol of a valued relationship,” Josette maintains.

Asked who a Mont Blanc gift would be best suited to, Josette affirms that there are no limits – people from all walks of life and at different stages in their life and career. “Whether you are a professional man or woman wanting to enjoy the art of writing; a parent wanting to mark the birth of your child with a specially engraved gift to be warmly appreciated later in life; a new graduate valuing your parents’ tribute to your hard work; or quite simply someone wanting to join a tradition of fine craftsmanship and imaginative innovation – with Mont Blanc in your hands, you will always feel that class and beauty are within your grasp,” she says.

And if you’re not sure of what to get, Josette suggests taking a careful look at the full portfolio, but recommends a few favourites. “Have a look at the highly-regarded special editions, all dedicated to authors, musicians and icons, celebrated in specially designed lines all with a story to tell: the William Shakespeare, the Leo Tolstoy, the JFK, the Princess Grace and last, but not least, my own favourite, the John Lennon.”

REST AND RELAXATION Sometimes, the best gift you can give to the busy businessperson who is always on the go, is a little rest and relaxation. Myoka Spas offer predesigned gift packages starting from €30, which include a 25-minute treatment together with the use of spa facilities, as well as a parking voucher. They also offer open gift certificates that you or the recipient can customise, which are valid for three months, which can be used in any Myoka spa.

Myoka Spas Director Jean Vella explains, “at Myoka Spas, we spare no luxuries when it comes to establishing a soothing home away from home, for your body, mind and soul. Where ancient rejuvenating techniques blend seamlessly with modern amenities, we deliver a health-renewing experience with lasting effects.

We promote a unique and complete sense of well-being, pampering you beyond your wildest dreams,” – just what the doctor ordered in this hectic season.

Indeed, services from Myoka Spas are a great gift to corporate leaders, who need to relax and de-stress after a year of challenges, budgets and meeting deadlines. “A visit to a spa is an investment to one’s mental, physical and emotional well-being. In today’s hectic business life, we understand the challenges that our employees are constantly facing. Our selection of holistic and well-being treatments will suit all male and female team members of any ages, and undoubtedly will be appreciated and leave a long-lasting positive impression on your organisation,” Jean concludes. BA

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Case Study

FXDD:

Malta at the Forefront of Finance Photo: Inigo Taylor

“[Brexit] has been described as ‘an act of self-harm’ and even as ‘the most stupid idea of the century’.”

The results of the Brexit referendum sent shockwaves across all sectors and areas of industry worldwide, but especially finance, where the City of London reigns as one of the foremost global capitals. Lachezar Ivanov, Risk Manager at FXDD talks to Marie-Claire Grima about the fallout from Britain’s upcoming divorce with the bloc and the role Malta could play in this new and unprecedented financial landscape.

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few months on from Britain’s startling and unexpected decision to exit the European Union made on 23rd June, the initial panic has died down, giving way to a sense of dread and uncertainty. “It has been described as ‘an act of selfharm’ and even as ‘the most stupid idea of the century’,” says Lachezar Ivanov, Risk Manager at FXDD, a hub for foreign exchange trading and global finance. “Experts are still trying to assess the damage that this decision has brought about.”

While the first reactions to the referendum results were just the tip of the iceberg of the losses that Britain will accrue from Brexit, they were bad enough in their own right. “Several property funds were suspended in the wake of Brexit, with the FTSE 250 losing more than 11 per cent and sterling 10 per cent,” says Mr Ivanov. “Today it has become clear that this decision has cost UK companies billions if not trillions of pounds.”

However, what is yet to follow could be far worse, because the after-effects will echo through several generations. “It is fair to assume that the

price will continue to be paid for years to come. Across the country, growth is expected to slow to 2.5 per cent in 2016 with residential property prices falling by 1.25 per cent in 2017. The Bank of England keeps base rates at a record low of 0.25 per cent. It also re-started its programme of ‘quantitative easing’ – buying bonds as a way of getting money into the economy. I would not be surprised if base rates hit 0.1 per cent before the end of 2016,” Mr Ivanov says. He adds that business confidence indicators for construction, manufacturing and the services sector have all fallen, while the latest poll conducted by Reuters predicts a contrac-

Photo: Alan Carville

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Case Study tion in the economy during the second half of 2016.

Photo: Inigo Taylor

The repercussions have also been strongly felt by the pound sterling, which went from being one of the strongest and stable currencies worldwide, to one of the weakest when compared to other major currencies like the USD and euro. However, this has brought with it a number of benefits that have gone some way towards cushioning the blow dealt to Britain-based businesses.

“So far, a 15 per cent decline on a trade-weighted basis for the pound since the vote for Brexit has brought lots of tourists into the UK,” Mr Ivanov says. “Three-quarters of the companies in the FTSE 100 generate their revenues from abroad, so the devaluation of the sterling boosted the index.

It has also made life a lot easier for UK exporters and, in turn, resulted in sterling stabilising at around the 1.20 level against the US dollar. Many experts evaluate the sterling’s fall as the essential safety valve which has protected the economy and financial markets from collapse.”

The sterling’s newfound weakness has drawn comparisons to Black Wednesday – when the British Conservative government was forced to withdraw the pound sterling from the European Exchange Rate Mechanism (ERM) on 16th September 1992, after it was unable to keep the pound above its agreed lower limit in the ERM. “Experts recall how sterling’s exit from the ERM made the currency more competitive for exporters and helped the UK’s balance of payments, contributing to the UK’s economic recovery,” Mr Ivanov says. “We could be witnessing the same thing happening here.”

However, predicting the longevity of these benefits is difficult, especially when Britain has so much to lose in the wake of Brexit. “One of the major worries for economists is that energy and commodities are priced according to the value of the US dollar. As they become more expensive, they may generate inflation if producers pass on the increase in prices to consumers. Higher inflation could dam-

“I see an opportunity for Malta to heavily promote itself as a hub for international financial services in the coming months... I believe that with the uncertainty currently surrounding the City for many global banks and service providers, considering a reallocation to Malta is not far from reality.” age business confidence and result in businesses pulling back from investment, especially if Brexit negotiations become complicated,” Mr Ivanov asserts.

Furthermore, banks and financial services firms based in London are among the biggest beneficiaries of passporting agreements, allowing them to offer services to the whole bloc from one country. It's a small wonder that UK Prime Minister Theresa May has been equivocating on the promise of a ‘hard Brexit’ which she made some weeks ago.

“The City is a world capital of foreign exchange trading and the number one international banking centre. In case of a ‘hard Brexit’ there is a lot to lose,” Mr Ivanov argues. “Consulting, financial, insurance, legal, and related services account for 12 per cent of the UK’s gross domestic product. They pay more in taxes than any other sector and support an estimated 2.2 million

British jobs. Who loses and who wins will depend on the deal that the British government makes with the EU, as well as on the new negotiations it will have to undertake now that it is no longer a member of the EU. However, it seems safe to say that the City will suffer from Brexit, while other European cities will benefit.”

The question which inevitably arises is whether Malta stands to gain anything from Brexit, and how this will transpire.

Malta has some of the most comprehensive financial regulations and taxation frameworks in Europe, as well as the benefit of being an English-speaking country. However, according to the IMF, Malta is only second to Cyprus out of all the member states in terms of how exposed it is in terms of services exports to the UK. “Malta exports equal 2 per cent of GDP and will be adversely impacted by the depreciation of the pound, depending on how price sensitive UK consumers were,” says Mr Ivanov. “Foreign Direct Investment from

the UK makes up about 6.3 per cent of Malta’s GDP, one of the highest figures within the EU.”

Malta to heavily promote itself as a hub for international financial services in the coming months.”

Mr Ivanov adds that when it comes to market regulatory infrastructure, one has to point out the regulatory structure under the Markets in Financial Instruments Directive (MiFID), which enables cross-border access to exchanges, clearing houses and depositaries. “Member states are required to ensure that firms based in other states are permitted to access regulated markets, central counterparties, and clearing and settlement systems established in their jurisdiction. Under the EU regulation on derivatives, central counterparties and trade repositories (EMIR), central counterparties authorised in any member state are treated as authorised across the EU. There is a lot of uncertainty about the result of UK negotiations with the EU with respect to EMIR. In this context and keeping in mind the relationships between Malta and the UK, I see an opportunity for

“Along with Ireland, Malta is one of the two English-speaking EU countries. It has the benefits of a UK legal approach, it has one of the most tax-favourable business environments, and offers a full EU legislation framework to financial institutions. I believe that with the uncertainty currently surrounding the City for many global banks and service providers, considering a reallocation to Malta is not far from reality. Obviously a monitoring of the microeconomic indicators is needed for proactive decisions. But I think there will be a lot of new opportunities for economic development and business, especially in the financial area. Comprehensive but profound legislation framework in all areas, complemented by a competitive taxation strategy is what shall always attract Foreign Direct Investments.” BA

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Events Photos: Domenic Aquilina

20th Anniversary

Celebration O

Leader of the Opposition Simon Busuttil

n the 11th November, MBB organised a lunchtime concert and reception, held at the Malta Chamber, to celebrate the organisation’s 20th anniversary. Welcoming speeches were given by MBB President Dr John Vassallo, and past Presidents Anthony Cassar and Joseph R. Darmanin. A concert was then performed by the ‘re: orchestra’ of Rotterdam, considered by specialised media as one of Europe’s best chamber orchestras.

The event was sponsored by MBB President Dr John Vassallo and Dr Marianne Noll; The Malta Chamber of Commerce, Enterprise and Industry; and The Westin Dragonara Resort, member of the Malta Hotels and Restaurants Association.

MBB President Dr John Vassallo – Comments: Deputy Prime Minister Louis Grech

“20 years in any organisation’s life is an event worth celebrating. It is even more exciting when the 20 years of the Malta Business Bureau coincide with the journey of Malta towards membership of the EU. As an active participant of this journey myself, albeit from other vantage points, my experience and that of the MBB have a lot in common.

Left to right: Dr John Vassallo together with MBB CEO Joe Tanti, Malta Chamber President Anton Borg and past Presidents Joseph R. Darmanin and Chevalier Anthony Cassar

mark on the workings of our organisation. The constant presence of the MBB with an office and one permanent representative in Brussels keeps us abreast of developments there. The small but ardent staff in Malta ably led

by Joe Tanti has argued its members’ case in Brussels and in Malta.

The MBB represents the industrial and commercial base of the smallest EU member, an industrial and commercial base that is mostly made up of SMEs. Our voice is a small one but for our members it is an essential voice. It is our task at the MBB to make that voice heard loud and clear and, more importantly, efficiently.”

MBB CEO Joe Tanti – Comments: “Over the years, the MBB has played an important role in ensuring that Maltese businesses are conversant with the latest developments at EU level, and also by informing and updating them on the various available opportunities.

While continuing to follow all developing business-related EU policies

through our affiliated partnerships with BUSINESSEUROPE, EUROCHAMBRES and HOTREC, we are now also targeting specific priority dossiers in order to influence changes in the legislative proposals that make a difference for Maltese businesses. Our experience has shown that it is indeed possible for small organisations from small member states to play an active role in the EU’s legislative process.

Also, in recent years, the MBB’s work has become increasingly effective through its attainment of EU funding and participation in EU programmes for the benefit of the business community at large. Our role as strategic partners in various projects such as the Enterprise Europe Network add more value to our work.

There is no doubt that the MBB has come a long way in carving an important role within the institutional landscape of the European Union. I am fortunate to have been a part of this journey and to lead such a dedicated and committed team of professionals.

The organisation thrives because of its people!” BA

With 12 years of membership this year and the assumption of the six months Presidency of the Council next year, we can and should look back at what Malta and the Maltese business community has achieved in this time. We should also look back at how the MBB has developed and what it has achieved.

Most of all, we should look forward at the bright future for the MBB and its members. The future is what we make of it.

The breadth of its membership and the decade within the EU have left their

From left to right: Dr Roberta Metsola, Dr Therese Comodini Cachia and Mr Tonio Fenech

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MBB News

Business Agenda News Updates 6th-7th October MBB Participates in Powering Innovation Summit, Estonia An MBB delegation composed of MBB Director Mario Spiteri, CEO Joe Tanti and Executive Ana Vella together with two local companies, participated in the Design for Europe Summit, held in Tallinn on 6th October.

The full-day event welcomed several expert panel discussions and interactive workshops. MBB was invited to host an afternoon Open Space Discussion gathering insights on the key elements necessary to create a good support programme for businesses.

Joe Tanti led the discussion, sharing MBB’s experience over the past year as Design for Europe Ambassador in Malta. International representatives of various design and innovation-driven organisations across Europe also participated in the discussion.

MBB’s initiatives in extending Design for Europe best practices to the island were acknowledged and publicised in a country report booklet. A dedicated wall panel projecting a timeline of MBB’s design-driven activities as well as a feature of Malta’s case in the Project’s country reports were displayed at the conference as a best practice example.

In its capacity as an Enterprise Europe Network (EEN) service provider in Malta, MBB organised a tailor-made company mission for the two participating companies on 7th October. Following the day of the summit, the companies participated in several successful bilateral meetings with top performing companies in Estonia.

In addition to the summit, Joe Tanti was also invited to attend the masterclass workshop event in Lublin, Poland, on 13th October.

The invite-only event for national Design for Europe Ambassadors took the form of a one-day practical workshop, with international design experts Jonathan Ball (UK) and Justin Knecht (USA) with two aims. These were to explore and interrogate different national approaches to using design for innovation and economic growth and develop the leadership capacity of national Ambassadors, to drive this thinking within their own country.

The workshop was based on latest thinking whereby attendees were equipped to adapt the various approaches from the Business-Support Canvas method, to their own regional or national circumstances.

13th October MBB delegation participates in European Parliament for Enterprises event A Maltese delegation composed of representatives from the Malta Business Bureau, the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Associa-

tion participated in the fourth edition of the European Parliament for Enterprises event organised in Brussels by Eurochambres.

For one day, the European Parliament hemicycle hosted entrepreneurs from all over Europe in a mock plenary discussing the most relevant topics on the EU agenda in four different sessions focusing on Trade, Internal Market, Circular Economy and Skills.

MBB President John Vassallo asserted that “traders’ decision not to sell cross-border is not motivated by discriminatory practices on consumers’ nationality or residence, but due to well-thought business considerations,” when commenting in reaction to the current European Commission proposal for a Regulation addressing geo-blocking in the single market.

Malta Chamber Vice President Tonio Casapinta highlighted that “priority lies in having a labour force which is well equipped with Digital and STEM skills, ongoing professional development and active ageing,” when commenting on the New Skills Agenda that was published by the European Commission earlier in June.

The European Parliament for Enterprises has proved useful in presenting entrepreneurs with a platform to voice their thoughts, questions, frustrations and suggestions directly to the European institutions and senior EU officials. Among others, present at the event were European Commission Vice President Jyrki Katainen, European Parliament Vice President Antonio Tajani, various Director Generals from the European Commission and Members of the European Parliament – who intervened and reacted to entrepreneurs’ comments.

The event also included a mock voting session on specific questions posed to entrepreneurs – the most notable being 94 per cent who agree that an effective EU coordinated trade policy matters for the competitiveness of their country. 88 per cent believe that lack of information on rules and requirements presents a significant obstacle to do cross-border business; 71 per cent agree that there should be more environmental criteria in public procurement; and 75 per cent believe it is harder to recruit staff with the right skills today than it was five years ago.

18th October MBB President and EU Affairs Manager participate in round table meeting in Brussels In view of the current European Commission proposal for a Regulation to address unjustified geo-blocking in the single market, BusinessEurope and EuroCommerce organised a stakeholders’ round table meeting to convey the business position to key officials from the European Commission, Parliament and Council.

The general agreement motioned that the roots of geo-blocking are largely linked with the existent fragmentations of the European single market, which discourage traders to operate cross-border. The business community does not consider the geo-blocking proposal to be either a game changer, nor that it will have the desired effect of boosting online cross-border sales significantly in the EU. Current legal uncertainties in the Commission proposal on which rules will apply in the event of disputes, particularly in view of recent European Court of Justice jurisprudence on similar cases still exist. MBB President Dr John Vassallo suggested the creation of an Online Dispute Resolution system which harmonises EU rules so that both traders and consumers will know by which rules they are abiding. This would increase the confidence in the market.

MBB EU Affairs Manager Daniel Debono referred to some practical situations that this proposal fails to address, also touching upon the issue of lack of legal clarity; stating that SMEs should not be exposed to risks of having to defend themselves in jurisdictions of markets they do not target in the event of disputes, as they do not have the resources to do so.

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MBB News 21st October Debating the Digital Single Market with European Commission Vice President Andrus Ansip MBB Policy Advisor David Lorenzo Álvarez attended the debate held by the European Commission Representation in Malta with Andrus Ansip, Vice President of the European Commission responsible for Digital Single Market and former Prime Minister of Estonia.

During the debate Andrus Ansip stated the opportunities of a completed digital single market for both Maltese enterprises and consumers. In this sense, he underlined the importance for businesses to ‘go online’ and also the importance of the digital skills in the labour market.

Geopolitics) Shada Islam; DG of the Today Public Policy Institute Martin Scicluna; and Executive Director (EU Presidency) Ambassador Victor Camilleri, as guests of honour.

The event was also attended by MBB President Dr John Vassallo and Vice President Kyle Borg, MBB CEO Joe Tanti, Malta Chamber President Anton Borg, MHRA President Tony Zahra and Malta Chamber Director General Kevin J. Borg.

The dinner debate discussions centred around EU politics, the upcoming Maltese Presidency and Brexit among other topical subjects.

This event was hosted by MBB Vice President and hotelier Kyle Borg at the Diningroom Restaurant, Mellieha.

to make investments and manage their financial assets. Consequently, entrepreneurs need to better understand their financing needs and options, and to be aware of the financial support and products available to their business.

To this end, the INVEST project aims to develop a training model and other related tools to support micro-entrepreneurs, aged 18 to 34 (also known as Generation Y). This will enable them to make responsible economic, financial and investment choices, in function of their business growth plans and development perspectives. The ultimate goal is to improve financial literacy, thus helping micro-enterprises stay stable on the market, foster local economies and support further employability.

Mr Ansip also mentioned the current proposal about unjustified geo-blocking and his will of seeing cross-border legal access to digital content not geo-blocked, even if digital content and copyright have been excluded from the initial European Commission’s proposal. In this regard, he believes that the proposal will be approved during the Maltese Presidency.

20th-21st October MHRA Appointments in HOTREC Committees

28th October MBB Brussels Office coordinates MEDEF’s visit to Malta

HOTREC, the umbrella association of Hotels, Restaurants and Cafes in Europe, has held its 73rd General Assembly in Malta, attended by delegates from 26 countries from across Europe.

During this General Assembly, elections and appointments to various bodies were held. Tony Zahra, Malta Hotels and Restaurants Association (MHRA) President was appointed by the General Assembly as member of the Financial Audit Committee. This Committee is tested to review the accounts of the Sectoral Social Dialogue (SSD). Andrew Agius Muscat, MHRA CEO, was re-elected to the SSD. Among other duties the SSD concentrates efforts on the so-called Sharing Economy, job creation, training and education.

“The hospitality sector employs more than 10 million people. It is, therefore, essential that a solid dialogue among the social partners on European initiatives concerning social affairs continues to be developed, for the sector to continue creating more jobs and increase its competitiveness,” commented Mr Agius Muscat.

A delegation of French business confederation MEDEF, composed of 22 leading French businesses, visited Malta ahead of next year’s EU Presidency to exchange views on Government’s priorities for the six-month period. The visit, coordinated by the Malta Business Bureau’s Brussels Office covered key policy areas such as corporate taxation, trade, renewable energy and energy efficiency, as well as the emissions trading scheme by industry.

27th October Launch of INVEST Project

24th October MBB organises Dinner Debate with Friends of Europe

The MBB, as project partner in ‘INVEST – Financial and Forecasting Models for Entrepreneurs’, has competed successfully in the recent call for proposals under the Erasmus+ programme. The consortium partners represent various areas of expertise. The Mediterranean Bank Network (Malta) and Association EFFEBI (Italy) offer expertise specific to the financial services sector; Eurocrea Merchant (Italy) and IDEC (Greece) are competent in the educational sector whereas Bridging to the Future (United Kingdom), Inqubator Leeuwarden (The Netherlands) and the Malta Business Bureau offer different advisory services to businesses and entrepreneurs.

After having been approached by Founder and Chairman of Friends of Europe Giles Meritt, MBB took the opportunity to organise a high-level dinner debate to welcome Friends of Europe Managing Director General Geert Cami; Director (Europe and

This project has been inspired by the challenges faced by entrepreneurs in their attempt to access finance. Such difficulties mainly arise from the entrepreneurs’ lack of confidence and lack of financial literacy, which may go on to hinder their capability

As part of the visit, MEDEF was also received by the Malta Chamber of Commerce, Enterprise and Industry. President Anton Borg explained how Maltese business was stepping up its efforts on the European stage. On the forthcoming Maltese EU Presidency, Mr Borg noted that this is the country’s first experience and there exists every intention for a concerted effort to make it a successful one. “Everyone is well aware of the highly interesting yet particularly delicate timeframe during which Malta will hold the Presidency. The first half of 2017 is expected to be characterised by political and economic uncertainty – with a new American President and discussions on Brexit, all while operating within a context of widespread political and economic instability in neighbouring regions and the resulting unprecedented migration crisis and threat of terrorism,” he said.

MBB President Dr John Vassallo also addressed the meeting.

31st October EMPLOYER ORGANISATIONS ADVOCATE LESS RIGID, MORE BUSINESS-FRIENDLY EU Addressing existing single market fragmentations should be the underlining priority for the Maltese EU Presidency, according to Maltese employers.

Businesses are still facing difficulties to sell cross-border due to member states failing to provide mutual recognition to goods, service providers facing barriers to establish cross-border operations due to endless national requirements, and a lack of market surveillance resulting in inferior products from third countries finding their way into the European single market.

These among other issues were raised by a delegation of employer organisations consisting of the Malta Business Bureau, the Malta Chamber of Commerce, Enterprise and Industry, Malta Hotels and Restaurants Association, GRTU Malta Chamber of SMEs, and the Malta Employers Association, in a meeting with Prime Minister Joseph Muscat on Monday 31st October.

Furthermore, the Maltese employers argued that the EU should confirm itself as a global actor by reinvigorating the Mediterranean as an area of peace, cooperation and prosperity. It should also make itself more attractive and make it easier for talent from third countries to come to the EU and contribute towards its growth, productivity and innovation.

These points were presented in a document entitled ‘The EU Presidency – A Business Agenda’, which reflects the position of the main employer bodies in Malta.

It is a product of lengthy discussions held in the past weeks in which the Maltese employer organisations discussed what in their views are the most relevant EU priorities and on which the Maltese Presidency should ensure progress for the common good of the EU. In the economic context, the employer bodies said

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MBB News

that they advocated an EU which is less rigid and more business friendly with clear, pragmatic and realistic priorities and where the focus is on the concrete delivery of these priorities.

The employer organisations told the Prime Minister they are confident that Malta will step up during the EU Presidency which will take place in the first half of 2017, and that they will continue to offer their full availability to assist in the preparation and the undertaking of the EU Presidency as needed.

The report was coordinated by Stefano Mallia, Vice President of the Employers Group in the European Economic and Social Committee.

The Prime Minister was accompanied by Deputy Prime Minister Louis Grech; Minister for the Economy, Investment and Small Business Christian Cardona; Minister for Finance Edward Scicluna; Minister for Competitiveness and Digital, Maritime and Services Economy Manuel Mallia; and Parliamentary Secretary for EU Funds and 2017 Presidency Ian Borg.

7th-8th November Investment Plan for Europe visit to Brussels The European Commission Representation Office and the Malta Business Bureau collaborated and coordinated a visit for Maltese stakeholders to Brussels on the Investment Plan for Europe.

The Investment Plan is the landmark initiative of the Juncker Commission that is being spearheaded by Vice President Jyrki Katainen. It is the EU's response to reverse the decline in investment recorded since the onset of the economic crisis with a view to boost growth and jobs. At its core is the European Fund for Strategic Investments (EFSI) – a new fund with a risk-bearing capacity of €21 billion co-managed between the Commission and the European Investment Bank. The allocation of financing under EFSI is demand-driven and not geographically pre-determined. Approval of financing depends on presenting viable projects which are consistent with EU policy. The Commission has recently tabled a proposal to double EFSI, in terms of both duration and financial capacity. It is expected that this extension would mobilise some €500 billion worth of investment in the real economy by 2020.

In September 2015, MBB had also hosted a seminar in the presence of the Vice President during his European road-tour promoting this initiative. The Investment Plan’s objective is to reignite public and private investment in Europe to pre-crisis levels.

The two-day visit to Brussels comprised a number of sessions with the Commission and European Investment Fund (EIF) experts on different aspects of the Investment Plan as well as representatives of a Belgian financial intermediary involved in EFSI financing.

On the second day, the delegation visited WOW Technology in Naninne, Belgium to learn more on how EFSI is helping the company grow. This best practice visit created a good opportunity for leading entrepreneurs to connect and learn more about the European Fund for Strategic Investments.

More information on the Investment Plan for Europe may be found here: http://ec.europa.eu/priorities/jobsgrowth-and-investment/investment-plan_en This visit was funded by the European Commission.

14th-16th November EEN Annual Conference, Bratislava MBB Executive Ana Vella attended the Enterprise Europe Network Annual Conference 2016, held at the Refinery Gallery in Bratislava. The key Network event gathered well over 750 participants and brought together Network partners, representatives from European institutions and key external stakeholders. Ana

was joined by Brigitte Tanti, EEN Malta consortium co-ordinator, Malta Enterprise; and Lino Mintoff, Head Projects and Internationalisation, Malta Chamber of Commerce.

The conference was an opportunity for the local EEN contact points to discuss their collective efforts with their foreign counterparts, share information and ideas, as well as promote local company profiles. The Maltese EEN delegation also attended a series of organised working sessions designed with other partners to continue building the local Network's capacities.

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Food & Drink

Have a

drink on me With the festive season around the corner, talk turns to scrumptious food and drink.

As whisky has become one of the most popular spirits to enjoy at this time of year, Jo Caruana asks experts how best to enjoy a dram or two.

T

he world of whisky is an international industry valued at around €70 billion a year. Growing interest in it has sparked demand in everything from whisky collecting to whisky-related travel. So what is it that makes this such a beloved drink?

Wilfred Camilleri, marketing manager for beers and spirits at Charles Grech Co Ltd, believes it’s because whisky encapsulates age. “Just the idea of having a liquid which has been stowed away in a cask for at least three years, untouched and unseen, and which then gives you the opportunity to see how the ageing process has changed the original spirit, is simply amazing!”

Delving into further detail, Claudia Attard, brand executive from Farsons, explains that it’s the long history behind this drink that gives it its edge.

She details that the earliest records of the distillation of alcohol date back to Italy in the 13th century, where it was distilled from wine. “An early description of the technique was given by Ramon Llull (1232-1315). Its use spread through medieval monasteries, largely for medicinal purposes, such as the treatment of colic and smallpox.

The art of distillation spread to Ireland and Scotland no later than the 15th century, as did the common European practice of distilling ‘aqua vitae’ or spirit alcohol primarily for medicinal purposes,” she says.

“Between 1536 and 1541, King Henry VIII of England dissolved the monasteries, sending their monks out into the general public. Whisky produc-

tion moved out of a monastic setting and into personal homes and farms as newly independent monks needed to find a way to earn money for themselves.”

Speaking specifically about the connection between whisky and Christmas, Claudia traces this back to 1405.

“The earliest Irish mention of whisky comes from the 17th-century Annals of Clonmacnoise, which attributes the death of a chieftain in 1405 to ‘taking a surfeit of aqua vitae’ at Christmas. In today’s modern trade, though, the connection to the season is mainly all due to the fact that many whisky brands launch limited edition packages and various expressions around Christmas time for gifting purposes.”

For others, the link is a lot more lighthearted. Jamie Christie, a HORECA and wine consultant at Red October Co Ltd who is currently studying for a Diploma in Wines and Spirits, laughs that, “we drink it for its warming qualities and to get through those family lunches without killing one another!”

The beauty of whisky is that there are so many varieties to taste and try, and it all comes down to preference. “Just like with wine, it’s very difficult to choose the ‘best’ type of whisky because that choice varies greatly from one person to the other,” continues Jamie. “Personally, I tend to lean towards sweeter styles as I find them gentler than others. If I feel like spoiling myself, my go-to whisky is a Tullibardine 25-yearold single malt, or something similar that has been finished in ex-sherry casks; this lends that sweetness to the

whisky. If I’m on a budget, though, a grain-based whisky is ideal as they are generally cheaper but by no means of lesser quality. I recommend trying the Japanese Nikka Coffey Grain!”

The differences, of course, all come down to the processes that go into making each type of whisky – although they all start with the same three base ingredients: water, sugar and yeast.

“The word ‘whisky’ is nothing more than the ‘Anglicisation’ (or ‘Englishing’) of the Gaelic word ‘uisce’, which simply means water!” continues Wilfred. “This proves that the water is very important, so it’s normal to find that distilleries are very protective (and secretive) about their water sources. Meanwhile, another closely protected secret is the yeast strain used, which is usually handed down from brewer to brewer and literally kept under lock and key!”

The source of the sugars starts the differentiation since this can be derived from a whole variety of grains and this is one main categorisation of the type of spirit being produced. “For example, 100 per cent barley is used to produce single malt whisky, while in Irish whisky you find a mix of barley and other specific grains, and, in American-style whisky and bourbon, corn is used as one of the main sugar sources,” says Wilfred. “Other differences in the pre-extraction of sugars from the grains also differentiates whiskies, for example the use of peat in the malting process, which produces a smoky whisky; this is a particular trait found in Scottish islands’ whiskies.”

When it comes to the production processes, the initial stages are all the same, but that changes in the distilling process with the exclusive use of pot stills or the inclusion of column stills.

Methods vary by region and by distillery, depending on the type of spirit they are producing.

“Meanwhile, another key factor (which could also be considered the most important factor) is the ageing process

and the type of barrels being used,” he adds. “For example, in American-style whisky like Jack Daniel’s, we see the use of newly-handcrafted and charred oak barrels, in which the spirit ages until it reaches the desired flavour and colour.

After use, these barrels are shipped to Scotland, in which single malt whiskies are aged for a minimum of three years, although, it’s worth pointing out that a lot of ‘experimentation’ of sherry, rum and wine casks is now taking place in the Scotch whisky world.”

Many of the latest trends in the industry can be related to the growing millennial interest in whisky in general, as well as curiosity for in craft and micro distilling. “A recent trend has seen more and more previously-unknown whisky-producing regions emerge into the limelight with top quality whiskies, such as Japan, India, Taiwan, France, Australia and many more, all with their own distinct regional and national characteristics, seeking innovation to set themselves apart from the pack,” says Jamie.

Finally, when asked which type of whisky they themselves will be enjoying this Christmas, each expert enjoys making their pick. “Personally, Aberlour is always a good choice,” says Claudia.

“It is one of the best value Speyside malts around. This double matured version is a mix of traditional oak and sherry casks, and is rich and fruity with delicious Christmas cake notes.”

Jamie will be helping himself to a bottle of 12-year-old Glen Grant. “It’s light, fruity and has these lovely subtle hints of caramel, toffee and vanilla, which

I love in a whisky. On top of that, it’s highly affordable so I won’t mind sharing with my brothers!”

As for Wilfred, he says that it doesn’t have to be Christmas for him to enjoy a nice dram of whisky but that he will be cracking open a 25-year-old port cask-finished Glen Moray this year.

“Just the thought that the youngest whisky in the bottle was placed in a cask when I was just 15 years old is fascinating to me, and it will certainly add to my Christmas celebrations,” he adds with a smile.

Whisky Food Pairings “I enjoy whisky both as a pre-dinner and after-dinner drink. It all depends on the occasion and the time of day, but a nice bar of dark chocolate is always perfect.” – Claudia Attard “The most important thing about any food and drink pairing is that you love both the food and the drink! Plain and simple – that way you know you are going to enjoy both. I’ll probably be having mine with some nice, warm apple pie.” – Jamie Christie “Again, it boils down to individual taste, but, Speyside area whisky, with its fruity soft and gentle character, marries very well with fruit and lightlysmoked foods. But, as there’s no shortage of chocolate at Christmas, I would probably opt for a dark version of that. Who doesn’t love chocolate anyway?” – Wilfred Camilleri

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Food & Drink

Whisky Cocktails

This Christmas, why not drum up a whisky cocktail or two in celebration of the festive season?

Our experts have picked their favourites.

Claudia Attard’s Rob Roy

Jamie Christie’s Whisky Sour

“This cocktail is ideal as it can be made 'sweet', 'dry' or 'perfect'. A 'perfect' Rob Roy is made with equal parts sweet and dry vermouth, and is often referred to as the Scotch Manhattan.”

“The barman at the restaurant I used to work for used to make a killer Whisky Sour cocktail, and it’s been my favourite one ever since!”

INGREDIENTS 50ml Chivas Regal 12 12.5ml Cinzano Vermouth Bianco 12.5ml Cinzano Vermouth Rosso Dash Angostura Bitters

INGREDIENTS 50ml Bourbon 25ml lemon juice 15ml sugar syrup 15ml egg white Cubed ice

HOW TO MAKE IT Prepare your orange twist. Pour Chivas Regal 12 into a mixing glass.

Add the Cinzano Rosso, and then the Cinzano Bianco. Add a dash of Angostura bitters, then the ice, and stir. Strain into a chilled Martini glass and garnish with the orange twist.

HOW TO MAKE IT Put the ice and all of the ingredients into a shaker and shake hard for about 20 seconds to chill the liquid really well. Then strain the mix into a glass filled with ice. If you want to give a little twist to the standard recipe, add a few drops of an Islay whisky to give it that peaty aroma and added complexity (the barman taught me this one!)

Wilfred Camilleri’s Old Fashioned INGREDIENTS 1 scant teaspoon of simple syrup 2 dashes of Angostura Bitters, plus more to taste 1 sliced orange peel, including pith 2 ounces of Woodford Reserve 1 maraschino cherry HOW TO MAKE IT In an old-fashioned glass, combine the simple syrup and bitters.

Fill the glass halfway with ice, then stir it about a dozen times. Add enough ice to fill the glass. Squeeze the orange peel over the glass to extract the oils, add the peel to the glass, and add the whisky. Stir just until the drink is cold and the alcoholic bite has softened, about a dozen times. Garnish with a cherry, swizzle stick, and straw. BA

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Business Update Tailored solutions for SMEs – BOV JAIME Financing Package

BOV JAIME Financing Package is the first EU risk sharing financing tool of its kind to be developed in Malta, and the second across all EU states.

Through this package, Bank of Valletta set out to deliver on its promise of being the Bank for SMEs, by designing a financing solution through which it will be in a position to support over 700 Maltese SMEs by providing €50 million worth of financing.

Bank of Valletta is aware of the challenges faced by the SME sector such as succession issues, corporate governance and undercapitalisation, all tied, to a greater or lesser extent, to the fact that these are intrinsically small enterprises. Over the years, the Bank built expertise in EU risk sharing instruments through its Representative Office in Brussels, and sought to use this expertise to help SMEs tap into opportunities available at EU level.

The BOV JAIME Financing Package is the latest in

Problems sleeping?

a series of such solutions that the Bank brought to the local SME market.

The BOV JAIME Financing package, through the provision of an EU guarantee, spells important benefits to the eligible SMEs, in terms of reduced collateral requirements and discounted interest rates.

There is more than a sales pitch when Bank of Valletta positions itself as the Bank for SMEs. Bank of Valletta invested in developing the expertise of its people and consolidated the service through a network of six Business Centres, each responsible for SME customers within its region.

Further information about the BOV JAIME Financing Package can be obtained from www.bov.com, or by contacting Bank of Valletta on T: 2275 1529.

Bank of Valletta p.l.c. is a public limited company licensed to carry out the business of banking and investment services in terms of the Banking Act (Cap. 371 of the Laws of Malta) and the Investment Services Act (Cap. 370 of the Laws of Malta). Registered Office: 58, Triq San Zakkarija, Il-Belt Valletta VLT 1130-Malta Registration Number: C 2833

Obstructive Sleep Apnoea (OSA) is a common and debilitating condition, and can affect people at any age, although it is most prevalent from middle age onwards.

In OSA, the upper part of the air passage behind the tongue, narrows and often blocks during sleep causing an interruption to breathing.

Obstructive Sleep Apnoea is characterised by loud snoring with episodes of silence.

Occasional brief obstructive events are harmless and are quite common in a normal adult. Each brief awakening required to re-open the airway passage destroys the normal sleep pattern and sleep is severely disrupted. This prevents the sleeper from enjoying sufficient deep sleep to feel refreshed and energetic the next day.

Sleep Apnoea’s short to medium term symptoms include chronic fatigue, mental confusion, lower testosterone count which reduces libido and associated erectile dysfunction but is also linked to many other serious conditions if left untreated over the long term. OSA can in fact be a contributing factor for hypertension, stroke, diabetes, heart disease and ultimately, heart failure.

Continuous Positive Airway Pressure (CPAP) is the most effective and non-invasive treatment offered to OSA sufferers. This therapy is designed to stop the air passage from narrowing or collapsing during sleep by acting as a splint.

Contact Technoline on T: 2134 4345; E: admin@technoline-mt.com; www.technoline-mt.com

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Business Update Showcasing a newly enriched Glen Grant collection: a legacy built upon passion, innovation and heritage The story of Glen Grant began in the 1840s, when brothers John and James Grant used their entrepreneurial spirit, skill and dedication to put down roots in Speyside, Scotland. Following over 175 years of passion and craftsmanship, the truly diverse Glen Grant range now includes The Major’s Reserve, 10 Year Old, 12 Year Old and the rare edition 18 Year Old single malt Scotch whisky; each with their own distinctive qualities, tastes and aromas.

The Major’s Reserve honours the hard work and dedication of James ‘The Major’ Grant, the son of James Grant Senior and a man who played a pinnacle role in Glen Grant’s rich history. The lightest of the range, The Major’s Reserve offers an easy drinking single malt Scotch whisky.

expression, the 12 Year Old single malt Scotch whisky is perfect for those who enjoy the finer things in life. Offering the distinctive taste of orchard fruits combined with hints of almonds and citrus, the expression leaves a long and lingering finish that can be compared to no other.

The prized, superior 18 Year Old single malt Scotch whisky completes the collection.

The most superior of its kind, the unparalleled, unfolding layers of the 18 Year Old single malt Scotch whisky caters to the more mature palette and is guaranteed to impress. Offering rich and floral oaky aromas, its deeply layered and complex recipe

delivers beautifully intricate flavours of malted caramel and vanilla, leaving a long, sweet and pleasantly spicy finish that is truly divine.

A truly diverse collection, Glen Grant single malt Scotch whiskies offer something for every moment or occasion, every palette and preference. A drink of life, passion, heritage and quality, every expression of Glen Grant’s liquid perfection is sure to intrigue, fascinate and delight.

Distributed by Red October Co Ltd. www.redoctobermalta.com; Fb: RedOctoberMalta

For those looking for a more coveted single malt Scotch whisky, the Glen Grant 10 Year Old is an expression that has been highly praised by many industry professionals, as the recipient of the esteemed award for ‘Best Single Malt 10yrs and under (Multiple Casks)’ by the Jim Murray Whisky Bible, for not one, but four years in a row and the guide’s top honour, the Single Malt of the Year 2016 (Multiple Casks).

Adding a touch of decadence to Glen Grant’s vast whisky collection is the new Glen Grant 12 Year Old single malt Scotch whisky. A more premium and matured

Ten years of success

Trust us as partners in your collection

Agritrans Logistics Ltd was established as a freight forwarder in 2006, making this year a landmark year during which we celebrate our tenth anniversary.

We also offer our clients the possibility of availing themselves of a warehouse facility in the centre of Catania to which clients may send their cargo to be shipped to Malta as well as Gozo.

We specialise in freight forwarding to and from Sicily, but offer services to several other destinations too. Our service offering has grown and expanded over this past decade from a few trips to daily groupage and to full loads. Investment is key in our industry and our vehicles are equipped with a tracking system to ensure that we remain on schedule each time, as we understand that time means money for our clients. We cater for all clients’ needs, ranging from delivering a box to delivering project cargo, transported in dry, temperature-controlled trailers which are also available with open tops and for rental for events.

Moreover, Agritrans caters for urgent consignments, whereby we strive to go above and beyond our clients’ needs and service their expectations, not once, but each and every time.

On the occasion of our ten-year anniversary, we thank our loyal clients for their support and encouragement.

Agritrans, 10, Triq N. Baldacchino, Siggiewi.

T: 2146 3436; M: 7992 5714; E: agritrans@onvol.net / agritranslogistics@hotmail.com; Fb: Agritrans Logistics Ltd

APS Bank to operate €12million innovation facility for Maltese SMEs Over the next two years, APS Bank in collaboration with European Investment Fund (EIF) will make available a loan portfolio of €12 million to support local SMEs in developing, streamlining and innovating their operations or products. The InnovFin Scheme is applicable to a wide range of business sectors and falls under the Horizon 2020 EU Framework Programme for Research and Innovation.

InnovFin provides for 50 per cent risk sharing by the EIF on the financing of loans, resulting in a maximum guarantee of €1.2 million per SME. It also offers competitive interest rates and repayment terms over ten years.

Commenting on the initiative, APS Bank CEO Marcel Cassar said that the bank “has a centennial tradition of supporting community entrepre-

neurs who have always been the backbone of the economic progress of our islands. We would particularly like to see innovative projects in environment, technology, science, education, culture, health and social care.”

SMEs interested in applying for the scheme are urged to contact APS Bank’s Commercial Business Unit (CBU) for an appointment by calling the APS customer support centre on T: 2122 6644. For more information about InnovFin, visit www.apsbank.com.mt/InnovFin

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Society

The Consummate Diplomat In more than 50 years of service, former ambassador and career diplomat Salv Stellini has seen Malta go from a British colony to a thriving, independent member state of the European Union from the very frontlines. He tells Marie-Claire Grima all about Malta’s difficult wilderness years, rehabilitating its image in the eyes of the West, and ushering in a new era of peace and prosperity.

S

alv Stellini, one of Malta’s most renowned diplomats, was born in a time when there was no such career path open to him. “I had always dreamt of joining the diplomatic corps, but Malta was still a colony when I came of age, and we didn’t have anything like that.” He spent some years as a teacher, but his ambition kept quietly simmering until in 1965, a year after Malta gained its independence, the newly-established Ministry of Foreign and Commonwealth Affairs started recruiting staff. Mr Stellini applied the following year, and after a series of rigorous exams, joined the force as one of five second secretaries.

“Diplomatic training back then took two years, including a full academic course at an internationally-recognised university – I attended the London

School of Economics for a year. As soon as I came back to Malta, Freddie Amato Gauci – one of the great architects of Malta’s modern public service – told me not to unpack my bags because I was off to Australia! I went through two months of export promotion preparation in Canberra, followed by attachment training in a friendly embassy – the Canadian High Commission in Dar es Salaam in Tanzania,” Mr Stellini recalls.

He received his first official posting in March 1968 to Malta’s Permanent Mission to the United Nations in New York, where he was in charge of economic affairs. There, mentored by the legendary Maltese-Swedish diplomat Arvid Pardo, he encountered many members of what he describes as ‘the diplomatic family’, many of whom he would keep on encountering over the years. He was also introduced by a mutual friend to his future wife Lucinda, the daughter of a Navy captain who had been stationed in Malta. “We used to attend the same parties but it took a meeting in New York for us to be introduced,” he chuckles. The couple wed a few years later.

Mr Stellini’s term at the United Nations ended in 1971, coinciding with Dom Mintoff’s second rise to power, this time as the Prime Minister of a newly-independent Malta. Returning to Malta for three years, Mr Stellini was tasked with comparing the benefits that Malta would gain from remaining an Associate Member of the Common Market against other potential arrangements, which would allow Mr Mintoff, still recovering from his protracted battle with Britain and NATO, to re-negotiate the original Association Agreement signed by Giorgio Borg Olivier a decade earlier.

After that, he was promoted to first secretary and sent to London, where he

“I had always dreamt of joining the diplomatic corps, but Malta was still a colony when I came of age, and we didn’t have anything like that.”

spent two years in the High Commission and nearly three years seconded to the Commonwealth Secretariat as Assistant Director, as well as Secretary of the Advisory Committee within the Secretariat, where he was responsible for convening the top five officials of the Commonwealth Secretariat for regular meetings. “It certainly taught me a lot about how an international organisation works,” he says.

In 1979, the last of the British navy left Malta, the NATO agreement came to an end and Malta was facing a dire financial situation. Libya, which had supplied Malta with crude oil at reduced prices when Malta was still a British base, saw this as a golden opportunity to tighten the screws. “Colonel Gaddafi hoped that by taking away the concession on oil, Malta would become thoroughly dependent on Libya, allowing him to exert his power over the island,” Mr Stellini explains. Consequently, Mr Stellini and the rest of the Maltese foreign ministry found themselves in the peculiar position of having to strenuously court oil-rich nations, particularly those in the Gulf region, and lobbying for pro-Arab, pro-Palestinian interests in exchange for low-cost fuel, which certainly did Malta no favours in the eyes of the West. Some assistance was provided by Kuwait, Qatar and the UAE, but eventually an agreement was reached with Saudi Arabia for the provision of Malta’s yearly oil requirements.

By 1981, it had been more than 15 years since Mr Stellini had first joined the diplomatic corps, and he was well overdue for another long-promised promotion. However, while 40 officers rose in rank that year – six within the foreign ministry, five of whom were his juniors – he was left in the same position. Disappointed and disillusioned, he tried to get boarded but was refused, so he resigned and spent most of the 1980s pursuing a completely different line of work for a career diplomat; helping Farsons develop its export strategy.

After the Nationalist Party won the 1987 general election, Mr Stellini was approached by Foreign Minister Censu Tabone, who confided that staffing the foreign office was proving to be a significant problem, since many of Mr

Photo: Alan Carville

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Society Stellini’s colleagues had left too. Dr Tabone urged him to return to the public service, promising him the post of Ambassador to Washington. However, Mr Stellini was adamant that he didn’t want to re-join the Foreign Office as a political appointee, so he requested to go through a reinstatement process via the Office of the Prime Minister. His request was granted. “I bumped into Eddie Fenech Adami at the Aida Theatre in Gozo one evening in January 1988 and he told me, ‘I’ve just signed your reinstatement papers today’.”

Three months later, he was headed to Washington as Malta’s new Ambassador to the United States.

In D.C., Mr Stellini had his work cut out for him. After 17 years of anti-American policy, his job was to help correct

“I bumped into Eddie Fenech Adami at the Aida Theatre in Gozo one evening in January 1988 and he told me, ‘I’ve just signed your reinstatement papers today’.”

Three months later, he was headed to Washington as Malta’s new Ambassador to the United States.

Malta’s tarnished image and make it clear that the country was now aligned firmly with the West. “It was just me and one administrative officer at the tiny Maltese embassy,” he says. Undeterred, he reached out to the US Ambassador to Malta, Peter R. Sommer, and asked him for help with establishing contacts with key people in Washington. Mr Sommer was sympathetic, and gladly obliged. However, it was Dr Fenech Adami’s five-day visit to Washington in July 1988 that truly sealed the deal.

During the visit, which had a programme organised by Mr Stellini, Dr Fenech Adami had meetings with countless people, from members of the Department of Commerce to CIA officials. He even found time to visit an iconic symbol of American independence, the Liberty Bell in Philadelphia, which had been cast by two people, one of whom was a Maltese man from Cospicua named John Pace who had immigrated to the US in the 18th century. The journey was an unprecedented success, paving the way for the selection of Malta as the place where US President George H.W. Bush and Soviet Premier Mikhail Gorbachev would meet to bring the Cold War to its

official end, in the midst of one of the worst storms Malta had ever seen. In the words of Mr Gorbachev’s spokesman, the Cold War was ‘buried at the bottom of the Mediterranean Sea’.

The Stellinis spent three happy years in Washington, where they became popular figures, hosting and going to dinners and barbecues, including several hosted by President and Mrs Bush.

These were instrumental years which allowed Mr Stellini the opportunity to secure military assistance for the Armed Forces of Malta, including the provision of fixed-wing surveillance aircraft, military vehicles and training for military personnel. However, it was now 1991 and Mr Stellini’s appointment as US Ambassador was up. His sights were soon locked on a new mission – easing Malta’s passage into the European Union as the new Maltese High Commissioner in London. “We needed to gather more support for our membership from future fellow EU member states. We had been cast in a particularly bad light since our application had been submitted and withdrawn – some thought we were treating it like a bus ride we could hop on and off. Some countries, such as Italy, were supportive; others, like Germany, were quite opposed to Malta joining the EU. The Brits were on the fence; they would have been content for us to have a special deal that would give us access to some of the privileges of the EU, but not full membership. We refused – we didn’t want to be treated like second-class citizens.”

Through an elaborate and tightly-knit grapevine of contacts, Mr Stellini man-

aged to arrange for Foreign Secretary Douglas Hurd to visit Malta for two days. Knowing that Mr Hurd was an avid classicist and historian, Mr Stellini organised a programme that, in between discussions and meetings, managed to appeal to and evoke the Foreign Secretary’s interests. “We took him to Fort St Angelo which was undergoing renovations at the time. He turned into a child right in front of our very eyes – running around in excitement from the dungeons up to the bastions! After that, Dr Guido de Marco hosted an official lunch at the Foreign Office, where Dr Ugo Mifsud Bonnici was one of the guests. As a trio of classicists, it was a real meeting of minds – they all started quoting Roman poets in Latin at the table!” Two days after the visit, Mr Stellini received a call from London – “a sea change had taken place in the British attitude towards Malta’s membership of the EU.” Soon after, 12 Maltese senior officials were invited to the UK Civil Service College in Oxford to begin negotiation training,

the first of many steps that would culminate in Malta’s accession to the EU on favourable terms in 2004.

Finally, Mr Stellini was appointed Permanent Secretary at the Ministry of Foreign Affairs, a post he held from 1996 to 2002. During those six years, he managed to help resurrect Malta’s diplomatic service which had lain dormant for more than 20 years. “I gave it a lot of attention and made it one of my top priorities. By the time I finished, we had quite a strong diplomatic service.

Many of the candidates that were successful during that time are now serving as ambassadors all over the world.”

His term ended in 2002, but before long, he was asked to chair the 2005 Commonwealth Heads of Government

Meeting (CHOGM) taskforce. The event was happening within two years, and would see 52 heads of government, vice presidents or foreign ministers, delegations numbering around 2,000 people in all, as well as 1,000 journalists from all over the world covering the event descending in Malta. Intensive preparations had to be made for every aspect of the event, from protocol to transportation to security. Bringing all the moving parts of the CHOGM

together was a herculean task, but Mr Stellini and his team pulled it off with finesse and thrift. The entire event cost Lm2.6m (around €6.05m); an independent audit showed that expenses had come in at around Lm200,000 (around €466,000) under the budget that had been projected. He was awarded the National Order of Merit for his services in 2005.

Organising and co-ordinating the momentous event took its toll on Mr Stellini’s health, so when it came to his final diplomatic posting, he asked for somewhere quiet to wind down his days as ambassador. He was granted Portugal, where the winds coming in from the Atlantic seem to tinge everything with a melancholy chill, from the traditional fado music, to the mourning garments of widows who have lost their husbands at sea and spend the rest of their lives wearing black. “I was responsible for setting up the diplomatic infrastructure, but other than that, my task was largely to keep Malta’s bilateral relationship with Portugal, a fellow EU member state, steady and positive.” It was the final official post he held until the end of his term in 2008.

The Stellinis now live in the peaceful hamlet of Bahrija, where their apartment, replete with paintings, bulldog memorabilia (their favourite dog breed) and framed pictures of their beloved children and grandchildren, overlooks an expanse of garigue that stretches out to the coast. When I visit, it’s a foggy day with poor visibility. “You can’t see anything today, but when it’s clear, you can see all the way to Gozo,” Mr Stellini says. After such a colourful and widely-travelled career where he witnessed Malta going through some of its most turbulent days in recent history at first hand, the quiet delight of being able to see the sister island on the horizon from the comfort of his own home seems to be a well-deserved reward.

BA

“Dr Guido de Marco hosted Foreign Secretary Douglas Hurd at an official lunch at the Foreign Office, where Dr Ugo Mifsud Bonnici was one of the guests. As a trio of classicists, it was a real meeting of minds – they all started quoting Roman poets in Latin at the table!”

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EU Policy

Rights that will shape Europe Earlier this year, European Commission President Jean-Claude Juncker announced his plans to develop a European Pillar of Social Rights that takes stock of the changing realities in the world of work. Jo Caruana talks to experts to discover what this means for employers, employees and the wider community.

T

he European Union is a politico-economic union that, for over 60 years and as part of its many efforts, has given importance to the social rights of its citizens. It is interesting, therefore, that EU Commission President JeanClaude Juncker recently specified the introduction of a European Pillar of Social Rights in a drive to ensure that Union citizens are better protected.

From the outset, the proposal set out a number of essential principles to support well-functioning and fair labour markets and social protection systems.

As a result, the EU has since engaged in a debate with social partners and stakeholders, including small and medium enterprises, to build on the content and role of the Pillar in a number of fields essential for well-functioning and fair labour markets and welfare systems.

The subsequent preliminary outline for the Social Pillar lists 20 principles and minimum standards that euro-zone members should grant to their citizens in order to improve the labour market and social rights. But what exactly can we expect?

“The principles outlined in the European Pillar of Social Rights are central

Helena Dalli

to Malta’s policy on social rights,” says Helena Dalli, Minister for Social Dialogue, Consumer Affairs and Civil Liberties “These principles tackle important socio-economical issues that characterise the stability of economies and the respective social facet.”

be sorted out, I am upset and scandalised that the last few years have brought many hardships upon Europe.

Of course, we will be supporting these measures, but I do think they signal that the EU has failed on this occasion.” should become a strategy focusing on economic competitiveness, better functioning labour markets, efficient education and training systems, so as to lift up all member states and bring about more economic convergence and social cohesion in the EU.”

In the Minister’s opinion, in implementing such principles, member states’ competences and prerogatives should continue to be respected and the diverse contextual realities acknowledged. “Social policies can never be effective if not designed to address contextual social realities of a state,” she says.

When asked for his thoughts on the project, Finance Minister Edward Scicluna says he has mixed feelings on it.

“Since its very beginnings, the EU has always prided itself on being a mixed market economy with an emphasis on social consciousness,” he says. “When one compares the EU to other markets, such as the Far East or USA, the emphasis here has always been on social aspects – such as workers’ rights, pensions, encouraging women into the workforce and so on; it’s always been more aware of these factors.”

“So, when I hear that Juncker is suggesting that this should become one of the ‘pillars’, I have to ask why. It appears as though the Commission President has become aware that, perhaps, actual practices have not been reflecting EU ethos since the financial crisis and subsequent austerity programmes.”

The Minister questions whether these social dimensions have come to be ignored. “I can’t help thinking that this should have been thought of in the first place,” he continues. “Although it’s never too late and, hopefully, this can

Nevertheless, many of the key economic organisations in Malta are choosing to forge ahead by backing the Pillar. For instance, Malta Chamber of Commerce director general Kevin J. Borg believes that social and economic development should work hand in hand. “Thus, discussing a strategy aimed at promoting social progress is something positive and we, as social partners, are prepared to engage with it.”

Speaking on behalf of BusinessEurope, director of social affairs Maxime Cerutti states that his organisation wants the Pillar to contribute to a comprehensive EU economic and social strategy fostering increased competitiveness of economies and social cohesion across Europe. “We recognise the need for increased convergence within the EU and Economic Monetary Union (EMU).

A genuine and appropriate social dimension of the EU/EMU will help underpin convergence, as long as it is about the outcomes – namely restoring competitiveness, growth, employment and productivity. The Pillar will only help in this process if it becomes a vehicle to support structural reforms on a national level by devising benchmarks to support this.”

That said, he stresses the importance of not limiting the discussion to social rights that are not linked to economic growth and competitiveness. “It is true that there is still a lot of divergence between the EU member states, mostly since the last two EU enlargements and because of the financial crisis,” he says. “It is for this reason that we should focus on economic and structural reforms based on the circumstances and needs of such countries, and not resort to one-size-fits-all solutions for the entirety of the EU. This

Meanwhile, the General Workers Union is positive and motivated by the project. “We are actively contributing to discussions on this topic,” says GWU secretary general Josef Bugeja. “We strongly believe that the social aspect of the EU made it inimitable in the past. After the financial crisis, many European countries introduced austerity measures and drastically reduced social benefits, salaries, pensions and so on. The EU as a whole is now facing a crisis in confidence; many working people are struggling with falling liv-

Edward Scicluna

ing standards, a decline in purchasing power and the rise of precarious work, coupled with anxiety over the impact of free movement and migration. We believe that it is time to move towards a shared vision of a Social Europe that improves the economic and social conditions of EU citizens.”

Mr Bugeja believes that, in order to regain credibility, the EU must show that it can offer real advances in living standards. “The main principles and aims of the EPSR should be to put social rights first, to guarantee upward convergence for all workers, to promote quality employment and not just minimum standards, to guarantee non-regression and ensure that legal interpretations benefit workers, include both rights and benchmarks, and to respect and strengthen social dialogue, collective bargaining and collective agreements.”

In fact, Minister Dalli asserts that the Pillar should have three main objectives. “Primarily it strives to create an inclusive labour market that provides opportunities to all, so as to enable them to actively participate in the formal economy. It should do this while also creating supportive working environments that encourage retention, including through flexible work arrangements, family-friendly measures, skill development and adequate working conditions.”

“Secondly, it must ensure that a balance is found between expenditure on social protection and active participation through make-work-pay prin-

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EU Policy ciples designed at a national level, resulting in increased economic and social well-being.”

“And, finally, there must be a focus on the future of work characterised by the digital revolution. Technological advancement needs to be complementary to lifelong learning, skill development and more inclusive and flexible labour markets,” she says.

“That said, the Pillar must not lead to the establishment of a benchmarking tool that compares member states’ performance without taking into consideration starting positions and contextual realities (nor their socio-economic backgrounds nor their political orientations).”

Josef Bugeja With all that in mind, though, this move begs the question whether all this is too premature given that the EU is still recovering from the economic crisis?

“It’s never too early,” Minister Scicluna says. “However, we do need to do this in a way that it can be stress-tested.

When the going was good before the crisis, there was growth in the EU; however when it was put to the test, it failed. I think we have learnt from that experience, so we now need to look to the future in a manner that will take both the good and bad into consideration, and be prepared.”

As for the EU countries that have been most affected, Minister Scicluna thinks they will be more cynical about the way forward, which could slow down the Pillar’s progress. “Greece, Spain and Italy have all suffered extensively and their populations are now facing crises including huge levels of unemployment. They have a right to be angry; they were abandoned at a time they needed help most. Looking to the future we can hope that this Pillar will help to stop this sort of crisis from ever happening again. To achieve that we have to concentrate on the right research and the development of best practices. Talk is easy, so now is the time for action. A one-size-fits-all approach has not worked in the past, and it should not be utilised now,” he says.

Admittedly, it is hard to know, at this early stage, whether the Pillar will bring about positive change. “The Commission’s approach and real objectives with the Pillar have been unclear, so it is hard to say whether it will lead to a positive dynamic for more performing employment and social policy frameworks across Europe,” continues Mr Cerutti. “In fact, if the Commission continues to send mixed signals on what

Maxime Cerutti it aims to do with the Pillar, there is a risk that it could damage the credibility of the EU due to the impossibility of matching it to the expectations created in society.

“In particular, the Pillar should not be used to pave the way for changes in EU social legislation, as the Commission’s Communication highlights that it should ‘address gaps’. The Pillar is not the place to consider the need for new EU social policy/legislation initiatives.

The EU Treaty includes clear provisions in this respect (article 153), obliging it to consult with social partners on any possible social policy initiatives. This must be respected. Beyond that, the EU social acquis is already well developed, encompassing over 70 directives protecting workers and providing them with rights in a number of key areas.

“What the Pillar can set in motion with added value is a renewed, coordinated EU labour market strategy, whereby the EU institutions, national govern-

ments and the EU and national social partners agree on a number of priority areas of progress to improve the performance of employment and social policy frameworks. The overarching goal of this move should be to get to grips with the persisting high levels of unemployment in Europe. This could take the form of common benchmarks acting as a compass for the necessary national labour market reforms. To add value, the Pillar needs to respect subsidiarity and take into account the responsibilities of various actors for the design and implementation of policies,” Mr Cerutti adds.

state, in that it excels in some areas, but requires reforms in others for balanced growth. Looking at the current situation, there are positives as well as negatives. “The unemployment situation has been addressed and is under control,” he says. “Measures addressing work-life balance (such as the provision of free-child care centres) are working well. Nevertheless, Malta faces many other challenges, such as low-female participation in the labour market, a high early-school leavers rate, and skills mismatches in the labour market.

All these restrict the Maltese economy from reaching its full potential.”

As for whether this Pillar will affect the local economy and labour market, Mr Bugeja strongly believes that it will.

“The Pillar of Social Rights, was, and still is, a showcase of our drive towards ever-improving living conditions for European citizens, particularly in the fields of working conditions, occupational safety and health, education, gender equality, health care and so on.”

“If this debate leads to constructive and realistic recommendations for reforms in Malta according to its circumstances, then it will be of good value. It could, however, prove counterproductive if the Commission intervenes with further social legislation that puts burdens on employers and affects economic competitiveness,” he asserts. BA

“Some of the Pillar’s aims are in line with national needs, such as in the case of up-scaling skills, boosting high quality education and vocational education, increasing high quality health and integration of foreign workers. As a matter of fact, for the upcoming Maltese Presidency of the European Council, the General Workers’ Union pushed for the inclusion of the posting of workers directive and digitisation.”

Finally, Mr Borg reminds us that Malta is no different to any other EU member

Kevin Borg

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