ADDRESS BY THE HON. EDWARD FENECH ADAMI, PRIME
MINISTER DURING THE EXCHANGE OF NEW YEAR GREETINGS WITH THE DIPLOMATIC
CORPS – AUBERGE DE CASTILLE, VALLETTA – 11 JANUARY 2002
Once again I have the opportunity to greet you at the start of a new
year. I wish to extend to you and to your families seasonal best wishes.
Through you, I also wish to extend the greetings of the Government and
people of Malta to the Governments and peoples of your respective
countries.
One set of events dominates our reflections on the
outgoing year. The attacks of the 11th September are no doubt indelibly
etched in our collective visual memory. The international community will
for some time continue to recoil from the economic impact of these
attacks. However, perhaps their most far-reaching consequence is the
manner in which they are bound to mould perceptions and influence
action, regarding the presumed strengths and vulnerabilities of the
ever-evolving global community.
The emergence of a virtual global alliance against
terrorism is the immediate and positive response to the attacks of 11th
September. What is even more encouraging is that the elimination of the
visible manifestations of terrorism is only the beginning of the task.
This must be accompanied by a sustained and determined endeavour to
eliminate the root causes which nourish the resentment, fanaticism and
prejudice upon which terrorism thrives. As recent and less recent events
teach us, these are the real enemies of civilised society - all the more
redoubtable because, however undesirable and dangerous in themselves,
they arise from deep rooted elements in human nature.
Here in Malta we share the economic and political
impact of the events of 11th September, and are actively playing our
role in the global alliance. None of our citizens were direct victims of
the tragedy. However, our thoughts are with those who have been less
fortunate, and, through those among you who represent them, I take this
opportunity to reiterate to their families our expression of sympathy
and solidarity.
A broader look at events over the past year presents
the usual mix of positive and less positive developments. From Malta’s
point of view, one of our most serious concerns over the past year has
been the deteriorating situation in the Middle East. There have been
sporadic hints of some improvement. However, the persistent seriousness
of the situation must not be ignored. One has only to look back a few
years, and compare the present situation with that which prevailed in
the mid-nineties, to appreciate this fact.
Malta welcomes and encourages the renewed energy with
which the United States is pursuing the cause of peace between Israel
and the Palestinians. We equally welcome and encourage the continuing
search by the European Union for a more direct and assertive role in the
region. We are shocked and saddened at the festering human tragedy for
both Israelis and Palestinians. But we do not subscribe to the notion
that there is any justifiable direct linkage between developments in the
Middle East, and events elsewhere. In particular, we wish to resist the
notion that all efforts towards regional co-operation in the
Mediterranean must be subordinated to the situation in the Middle East.
At the same time, however, we cannot ignore the
negative repercussions, which the continuing situation in the Middle
East is having on the process of Euro-Mediterranean co-operation. We
have consistently expressed our concern at the potential instability and
insecurity of the Mediterranean area. This arises from underlying
political, economic and social factors which are innate to the region
and which need to be urgently tackled in the framework of regional
consultations and co-operation. The Barcelona Process is the prime motor
for this co-operation. There are other initiatives, such as that of the
Mediterranean Forum, which are also useful in this regard, and in which
Malta is an active promoter and participant. We remain deeply committed
to maintaining and enhancing the relevance and viability of these
processes.
On a more positive note, the situation in the Balkans
has remained stable over the recent months. Members of NATO and the
European Union followed on their earlier timely action in Kosovo with
their initiative in Macedonia with, to date, equally encouraging
results. In recent years, the Balkan region has had its full share of
tragedies that arise when prejudice and fanaticism are unleashed. The
events of the last two years do, however, reaffirm the value of
effective international co-operation in helping to resolve what, at some
stages, appeared to be intractable problems.
A similar balance of positive and negative
considerations arises in respect of the current international economic
situation. During the course of the last year, this exhibited a somewhat
negative trend that was further exacerbated by the events of the 11th
September.
At the same time, the process of international
co-operation has been maintained. The year has seen the welcome entry of
China to the World Trade Organization. In Doha, the prospects for a new
round of trade negotiations were also given a useful boost.
Perhaps the most encouraging aspect of these latest
developments has indeed been the growing evidence that the international
community does possess reserves of resilience and solidarity, which
permit it to face even the most extraordinary challenges.
In this sense, the global reaction to the events of
11th September was not an isolated phenomenon. Rather, it unfolded in
the context of a growing readiness by the major powers to resolve their
sometimes very sensitive and complex difficulties, through calm and
patient dialogue. In an increasing number of instances, the United
Nations and other international organisations are being permitted to
play their useful, and often indispensable role, in tackling problems
and resolving issues.
In many ways the award of the Nobel Prize to the
United Nations Organisation and its Secretary General was symbolic of
the times and a reassurance for the future. The global community has not
yet reached the stage where it is ready to entrust in the hands of the
United Nations the full responsibility for the maintenance of peace and
security, as one would have hoped more than half a century after its
creation. There is, however, a new and impressive way in which the
established multilateral processes are becoming integral elements in the
life and operations of the international community.
There is one other positive development that I wish
to mention today. Over the last few days, a large number of the citizens
of the European Union have been participating in the final stages of an
initiative of major and far reaching political and economic
significance. The replacement of twelve national currencies by the Euro
is taking place in the context of a global political and economic
environment that is less than ideal. And yet, the calm and successful,
one could even say good-humoured, way in which this is happening has
taken even the most optimistic observers by surprise. There is no doubt
a lesson here for those who read too much into the bare statistics about
the level of popular support and involvement in the European Union.
Malta has shared in the ups and downs of the last
twelve months. Our small and very open economy has been directly
affected by international events, showing some overall growth in nominal
terms, but a slight contraction in real terms.
The extent to which this is due to external factors,
is shown by the fact that the sectors which have primarily contributed
to the contraction, are the ones that are most exposed to the outside
world. I refer here particularly to the electronics sector in our
manufacturing industry, and tourism in our services industry.
Other parts of our economy are showing more positive
results, confirming its fundamental resilience, as well as the soundness
of the long-term policies upon which it is based. My Government’s
primary objective remains the endeavour to provide all Maltese citizens
with the opportunity, to play an active and productive role in society,
at the same time as they fulfil themselves as individuals. We remain
constantly alert to the need to preserve the right balance between those
measures that promote economic growth, and those that ensure the proper
enjoyment of social benefits and civil rights. It is equally imperative
to ensure the correct balance between the immediate, and the longer
term, social, economic and also environmental impact of the measures
which we are taking.
I am confident that the key indicators remain
positive and encouraging. The increase in the gainfully occupied
population over the past year was slightly higher than the increase in
the total labour force, thus containing the rate of unemployment. The
rate of inflation remained at an acceptable level, at the same time
there was a relatively higher increase in average income. Our multi-year
plan to reduce the Government deficit remains well on course.
This has meant that even in a period of relative
economic difficulty, we have been able to proceed with measures aimed at
long-term economic and social reforms. During the year, we enacted a
significant amount of new legislation and introduced administrative
reforms in a number of important sectors. These include the financial
sector, social policy, standardisation, customs, state aid, regional
policy planning, transport, energy and environment.
Among the results which have the more far-reaching
implications over the longer-term, I would highlight the successful
restructuring of the forum for social and economic dialogue through the
establishment of the Malta Council for Economic and Social Development,
the finalisation of the work of the Task Force on the restructuring of
the shipyards and the constitutional amendment entrenching the system of
local government. In this context, I also wish to mention the recent
publication of our White Paper on industrial relations and the
continuation of the work on welfare reform and on privatisation.
Over the last twelve months, our negotiations to join
the European Union have also proceeded in a very satisfactory manner.
We remain well placed to achieve our basic objective
to become members of the EU at the next enlargement. There are by now
convincing indications that the political will exists, and the
conditions are set, for this enlargement to be completed by the
beginning of 2004. This means that the accession negotiations with us,
and the other advanced candidates, should be concluded by the end of
this year.
The accession negotiations continue to present us
with both a challenge and an opportunity. The challenge arises primarily
from the technical complexity and sheer scale of the work that needs to
be undertaken. The opportunity lies in the manner in which the process
of our national development can be complemented, and indeed reinforced,
by the exercise of adaptation required for our membership of the
European Union.
On both counts, the experience has been more than
successful. I remain constantly impressed and encouraged, both by the
competent manner in which the Maltese administration is coping with the
tasks involved, as well as with the seamless way in which the
harmonisation of our legislation and administrative structures with
those of the EU fit in with our basic socio-economic objectives and
needs.
In a broader context, developments within the
European Union constitute renewed sources of interest and motivation on
our road towards membership. As the Union prepares to debate its future
evolution, it is already clear that what we consider to be the most
essential characteristics of the Community method - the two principles
of solidarity and of subsidiarity - will be further re-inforced. As much
as the principle of solidarity binds together the members of the Union,
the principle of subsidiarity ensures the proper separateness and
distinctness of the component nations and peoples. Equally important for
us is the external dimension that the Union has always read into the
principle of solidarity - thereby ensuring its openness towards the
outside world and its commitment towards international co-operation.
It is for this reason that we are convinced that
Malta’s membership of the European Union will enhance its capacity to
further develop its bilateral relations, and to play an active role in
regional and wider initiatives for peace and co-operation. In this
spirit, I look forward to the opportunities for productive
collaboration, that will present themselves in the coming months.
Before concluding, I wish to extend once again my
greetings and best wishes, together with the augury that our common
endeavours will contribute towards the consolidation of our bilateral
relations, as well as towards our collective task of promoting peace and
understanding.
