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MALTA |
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Country presentation |
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In the middle of the Mediterranean, South of Italy and North East of Tunisia, the Island of Malta is a member of the European Union since 1st May 2004. On 8th March 2003, the referendum on this question obtained a majority for the « yes ». The country has respected all the criteria fixed by Maastricht. |
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Introduction |
In the middle of the Mediterranean, South of Italy and North East of Tunisia, the Island of Maltais a member of the European Union since 1st May 2004. On 8th March 2003, the referendum on this question obtained a majority for the « yes ». The country has respected all the criteria fixed by Maastricht. The European Union has moreover, declared its satisfaction at the good performance of the Island.. On the financial level, this small State with a reduced administration will have to align itself with the community interest, while continuing its efforts to restructure.
The State has reduced the weight of its civil service. The privatisation programme continues so as to prepare its future membership in the best possible way. Transhipment operations, transport, gaming and energy are the main sectors to be liberalised. Inflation is under control, the budget deficit, while remaining high has started to shrink, the balance of trade is improving and unemployment is stable.
Despite its small size, Malta may flatter itself for having a healthy and effective economy. International trade and especially exports have an important place here. Only able to survive thanks to her orientation towards the outside world, Malta is a signatory to a good number of international agreements, mainly in the economic and financial domains, not forgetting maritime and air transport and culture. The European Union is its leading trade partner, however, exports to United States (17%), Asia (32%) and North Africa are significant. Foreign investment has enabled the island to modernise over the past decade. Malta is therefore ready and prepared for the competition.
Following industry, tourism is a heavyweight in the service sector, as is maritime transport and shipyards. In fact, the Maltese commercial fleet is the fifth largest in the world in numbers of ships. Industry, engineering and mainly electronic products, provide 21 % of GDP and employing 23% of the working population. The economy is dominated by micro-enterprises: 95 % of the companies employ less than ten people. However, larger companies such as ST Microelectronics, Baxter, Playmobil, Dowty, Allstom, Jacuzzi, Cardinal Health, Delta etc. play a very important role in the Maltese economy. |
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Challenges |
Malta produces only 20% of its population’s food needs. It is therefore highly dependent on imports. Natural resources are not numerous. The island has no sources of domestic energy, if not the sun…Consequently the Import Bill for energy consumption is relatively high. Agriculture amounts to only 2.5 % of GDP because of the arid climate, the dismemberment of the land and the erosion of the soil. The government has made aid available for the coming three years. Another black spot, the budget deficit, too high for a State of this size. Little by little, its size is reducing. Finally, Malta suffers from its image of a convenience flag, especially since the sinking of the Erika. A label that the island is trying to throw off. |
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Strong points |
Maltese labour is qualified and flexible. Malta may also turn to a large and efficacious migrant workforce.
The legal system is transparent. Since 1959, the island adopted legislation favourable in supporting foreign investment into the island. In 2002, “The Business Promotion Act” came into force highlighting incentives for the manufacturing industry in line with the European Union. Among the many measures, fiscal exoneration, aid for staff training and financial loans for the acquisition of property or equipment. The legislation also encourages the installation of foreign companies on Maltese soil.
Pharmacy, electronics, information technology, agri-foods, the environment or fine chemistry are a number of sectors rich with opportunities for investors.
After having developed its tourist infrastructures in haste, Malta would like to enhance its sites more effectively. Among its objectives, the creation of new water treatment stations and refuse management facilities.
Finally, Malta profits from a long tradition of trade with Arab countries. |
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References |
| Capital |
La Vallette |
Surface area
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316 km² |
| Population |
390 000 |
| Languages |
Maltese, English, Italian |
GNP per capita
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18 000 US$ |
| Religion |
Catholics (91 %) |
| National holiday |
21st September (Independence in 1964), and 13th December (Republic of 1974) |
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