Expert evaluation network delivering policy analysis on the performance of cohesion policy 2007-2013 : year 1–2011 : task 2 : country report on achievements of cohesion policy : Malta

Abstract

Malta is the smallest of the EU member states both by population as well as geographic size. This characteristic is one that has influenced a number of aspects of Cohesion Policy in the country. Firstly, the whole Maltese archipelago is considered as one region at NUTS I and II levels. Second, at a local level, regional policy is limited with most national policy documents addressing the entire country, noting however the specific characteristics of the island of Gozo. The smallness of the economy results in the country being greatly exposed to external shocks, not least the recent economic recession. Although this is true, over the past decade Malta has built up its resilience against these shocks by diversifying its economic structure and shifting from traditional manufacturing activities to more lucrative, higher value added manufacturing and services activities that has helped to wither the economic storm. As a result, the deterioration in economic growth and public finances was contained in comparison to the EU average. Malta’s strategy for Cohesion Policy is presented in its National Strategic Reference Framework (NSRF) 2007-2013 with projects outlined in two operational programmes. Malta has been allocated EUR 728.1 million under OP I (European Regional Development Fund (ERDF) and Cohesion Fund) with total funds amounting to EUR 856.6 million when including the Malta funds under co-financing. Around 38% of funds have been allocated to environment and energy, 25% to transport, 22% to territorial development and 13% to enterprise environment. Although changes to the financial allocation have occurred across measures within priority axis, no changes in allocation have taken place by priority axis over the past year, thereby leaving the overall strategy adopted by the local authorities broadly unchanged