Peter Agius calls for mandatory EU islands impact test on new legislation

Experts back proposal, warning that high transport costs and insularity are putting island businesses and consumers at a disadvantage

The European Parliament's Internal Market and Consumer Protection (IMCO) Committee today held an exchange of views on the challenges faced by EU islands, following an initiative by MEP Peter Agius. The debate brought together Minister Clint Camilleri, economist Marisa Xuereb, representatives of the European Commission and several MEPs, including Alex Agius Saliba.

The discussion follows the European Commission's presentation of its Islands Strategy in July and comes ahead of the European Parliament's position on how EU islands can benefit more fully from EU membership.

Minister Camilleri highlighted the need for the EU to better assess how new policies affect costs for businesses and consumers. Marisa Xuereb warned that transport costs are "slowly eroding the Maltese manufacturing industry", while noting that a comparison of consumer prices in Germany and Malta shows that prices in Malta are around 30% higher.

Xuereb also pointed out that Malta imports around 80% of its food requirements, leaving the country particularly exposed to the costs and vulnerabilities of international supply chains.

MEP Peter Agius called for all new EU legislative proposals to include a dedicated islands impact assessment, examining how legislation affects island economies and identifying the necessary safeguards, including derogations or special conditions within the legislation itself.

He thanked the Committee for taking up his initiative, stressing that while the Commission's approach demonstrates an understanding of the challenges facing islands, it does not yet provide a systematic solution.

Both Minister Camilleri and Xuereb supported the proposal. Xuereb said that "a dedicated Impact Assessment for islands gives businesses the certainty that their investments in islands are safeguarded", adding that this would help economies such as Malta diversify beyond tourism.

Addressing the wider challenges of insularity, Xuereb said:

"The Maltese Archipelago faces a double layer of insularity. We pay more to bring products into Malta and more to export them. These additional transportation costs are a burden on our businesses and ultimately affect consumers.

"The European dream for Maltese citizens is still alive. We need Europe to recognise these realities and make sure that its policies deliver for people living on islands."

Minister Camilleri also stressed the need for the EU Strategy to recognise Gozo's specific circumstances, where double insularity creates additional challenges for infrastructure, connectivity and economic activity. He called for these geographical realities to be explicitly reflected in the strategy.