The effect of EU structural funds on Maltese public administration

Abstract

This dissertation scrutinizes the implications of EU Structural Funds on the Maltese Public Administration from Malta's accession to the European Union up to the execution of the 2007-2013 Programming Period. This study reviews these implications in the context of two theoretical frameworks namely Public Choice Theory and Managerialism. Information was gathered through semi-structured interviews as well as from quantitative data that was available from official documentation as well as from beneficiaries of Structural Funds. Whilst Malta has a comparatively high rate of absorption capacity of EU Funds when compared to other Member States of the European Union, a number of gaps that can jeopardise this rate were uncovered in this study. These start from working in a system under tight scrutiny of the supranational, namely the European Commission and the European Court of Auditors, both of which have their own set of respective checks and balances. Subsequently, this can bring about a high level of bureaucracy at national level to safeguard these checks and balances which might hinder the scope of managing Structural Funds, namely the optimum absorption and implementation of these funds. In this regard, Malta's small public administration comprises of stakeholders within the system of Structural Funds that must execute their 'normal' public function as well as carry out their functions in relation to Structural Funds. With such little room for the limited administration to manoeuvre, this is leading to a situation where the entire system is not reacting in a timely manner leading to delays in adjusting to the exigencies of the supranational and delays in the implementation and absorption of activities and funds respectively. With the help of continuums and dichotomies of the structures within the public administration, this study analyses the parts of the administration that have been shaped during this complex relationship between Structural Funds and the administration itself. Furthermore, this study proposes recommendations on how systematic improvements can be carried out even within the remit of these funds.