An appraisal of the utilization of European cohesion funds in Malta with special focus on social inclusion (2014-2020)

Abstract

The EU Cohesion Policy has for long been an instrumental pillar of the EU, also becoming a major component of the EU budget. Research focusing on the utilization of EU Cohesion Funds has shifted towards the importance of understanding how, when, and where public policy is effective by addressing the ‘conditioning factors’ of EU funds. Absorption capacity constitutes a conditioning factor of public policy as it sheds a light on the degree to which a Member State is capable of efficiently spend the allocated EU Cohesion Funds. The study appraises the utilization of EU Cohesion Funds in Malta with special focus on the thematic objective of social inclusion, by assessing the financial disbursement of EU funds and evaluating the shared challenges and opportunities of administrative absorption capacity for both the Managing Authority and the EU funding beneficiaries. The key findings of the study suggest that despite a slow start to absorption capacity in the first few years of the 2014-2020 programming period, Malta’s performance accelerated in subsequent years. By looking at EU co-funded projects which fall under the thematic objective of social inclusion, the Planning and Priorities Coordination Division (PPCD) and Servizzi Ewropej f’Malta (SEM) demonstrated a high degree of openness and accessibility to support beneficiaries with the implementation of successful and eligible projects. Nevertheless, the EU funding process remains highly complex and bureaucratic, due to multiple administrative absorption capacity setbacks which hinder the national EU funding environment. Both the EU and national authorities shall focus their efforts on the simplification of the EU funding process, without jeopardizing the principles of good governance.