Tibdil tal-klima: miżuri li jeħtieġ li jkunu ġusti

Huwa essenzjali li nilħqu l-mira ta’ emissjonijiet żero tal-karbonju (carbon neutrality). Ilu żmien ovvju li ekonomija dipendenti fuq iż-żjut mhiex waħda sostenibbli. Il-Konvenzjoni tal-Ġnus Magħquda dwar it-Tibdil fil-Klima, fis-summit ta’ Pariġi, fl-2015, kienet fasslet pjan dwar it-triq meħtieġa biex nintlaħqu miri li jħarsu l-klima. Jekk ma nimxux ma’ dan il-pjan, il-futur ifisser biss gwaj.

It-tibdil fil-klima diġa qiegħed magħna.  Madanakollu, l-impatti fuqna jistgħu jkunu ferm agħar minn dak li għaddej bħalissa: temperaturi estremi, nixfa’ kbira f’xi reġjuni u għargħar f’oħrajn. Id-diżastri qed iseħħu quddiem għajnejna kuljum. Il-qagħda għad trid teħżien bosta, qabel ma l-affarijiet (forsi) jaqilbu għall-aħjar.

It-temperatura medja fuq livell globali qed tiżdied. It-temperatura imkejla tvarja minn reġjun għall-ieħor. Fil-Mediterranean, studji riċenti qed jindikaw li qegħdin viċin li naqbżu żieda ta’ grad u nofs Celsius fuq it-temperatura pre-industrijali. L-impatti ta’ dan diġa qed inħossuhom.

Bħala stat gżira, Malta messa li hi fuq quddiem fid-dibattitu globali dwar it-tibdil fil-klima.  Sfortunatament, pajjiżna hu fost dawk il-pajjiżi li kontinwament ikaxkru saqajhom biex jevitaw jew inaqqsu l-azzjoni meħtieġa da parti tagħhom. Il-fatt li aħna żgħar ma jeżentaniex mir-responsabbiltà tagħna lejn il-futur.

Fost l-eżempji ta’ dan hemm ir-resistenza, tulis-snin, biex nagħtu importanza lill-ġenerazzjoni ta’ enerġija rinovabbli flimkien mat-tkaxkir tas-saqajn għall-proċess tal-elettrifikazzjoni tat-trasport.  

Ilkoll niftakru l-insistenza tal-Gvernijiet Maltin mal-Kummissjoni Ewropeja biex il-miri ta’ Malta dwar l-enerġija rinovabbli ma jkunux l-20 fil-mija iffissati mill-Kummissjoni imma jinżlu għal 10 fil-mija tal-enerġija totali ġġenerata.  Bl-istess mod, minkejja li fl-2017 saret dikjarazzjoni politika mill-Gvern favur l-elettrifikazzjoni tat-trasport, wara 4 snin għadna bla pjan u miri ċari. Il-bidla issa ser ikollha isseħħ b’ritmu mgħaġġel u ftit li xejn jidher li bħala pajjiż aħna ippreparati għaliha.

L-Unjoni Ewropeja għadha kemm żvelat pjan bi proposti biex l-emissjonijiet serra jitnaqqsu b’55 fil-mija meta mqabbel ma dawk tal-1990. Dan għandu jseħħ sal-2030, u dan bħala mira intermedja fit-triq lejn emmissjonijiet żero tal-karbonju (carbon neutrality) sas-sena 2050.

Waħda mill-proposti li qed issir hi li l-enerġija minn sorsi rinovabbli ġġenerata fl-Unjoni Ewropeja tkun ta’ 40 fil-mija mill-enerġija kollha użata. Dan ikun ifisser li fi żmien 9 snin Malta jkun jeħtieġilha li timmultiplika b’erbgħa l-enerġija rinovabbli li niġġeneraw fil-pajjiż. Din ser tkun mira iebsa, iktar u iktar meta tieħu kont tal-fatt li tul is-snin il-pajjiż dejjem ipprova jiżloq mill-obbligi tiegħu f’dan il-qasam.

Proposta oħra tal-Unjoni Ewropeja hi li sal-2035 ma jidħlux iktar fis-suq karozzi li jaħdmu bid-dijsil u l-petrol. Din mira li ser ikun meħtieġ li nilħquha fi żmien 14-il sena. Lokalment din mhi ser issolvi xejn jekk ma tkunx imżewġa ma miżuri biex jonqsu l-karozzi mit-toroq.

Proposta oħra tal-Kummissjoni Ewropeja hi dwar l-introduzzjoni ta’ taxxa fuq il-fjuwil użat milll-vapuri kif ukoll dak użat fl-avjazzjoni. Din il-proposta bla dubju jkollha impatt mhux żgħir fuq il-gżejjer u l-istati periferali Ewropej. Hi proposta li hi motivata mill-fatt li l-Ewropa kontinentali hi moqdija iktar bil-ferrovija, ġeneralment effiċjenti u li hu meqjus li tħalli impatti ambjentali ferm inqas mill-ajruplani.

Bi proposta ta’ din ix-xorta it-turiżmu jintlaqat sewwa. Kemm tkun kbira d-daqqa jiddependi minn kemm tkun kbira taxxa ta’ din ix-xorta.  Malta, il-Greċja u Ċipru diġa qed jgħidu li ma jaqblux ma dan!

Kemm is-settur tal-avjazzjoni kif ukoll dak marittimu huma kontributuri sinifikanti ta’ emissjonijiet serra. Sal-lum dawn iż-żewġ setturi evitaw  li jkunu nklużi fil-miżuri biex inkun mħarsa mit-tibdil fil-klima minħabba lobbying qawwi. Il-proposti tal-Unjoni Ewropeja jekk jidħlu fis-seħħ jibdlu din is-sitwazzjioni, dejjem sakemm il-lobbying jinżamm taħt kontroll!

Uħud diġa iddeskrivew dawn il-proposti (u oħrajn) tal-Unjoni Ewropeja bħala suwiċidju politiku u dan minħabba li l-impatti konsiderevoli tagħhom jistgħu jkunu l-kawża ta’ nkwiet soċjali qalil. Li nilħqu l-mira ta’ emissjoni żero tal-karbonju hu essenzjali imma rridu nkunu konxji li l-impatti tal-miżuri meħtieġa inevitabilment ser iweġġgħu bosta bihom.  Id-diskussjoni meħtieġa trid tassigura li waqt li jittieħdu d-deċiżjonijiet meħtieġa bla iktar dewmien, il-vulnerabbli, inkluż dawk bla mezzi jew b’mezzi limitati, għandhom ikunu mħarsa  milli jkunu huma li jħallsu għall-ispiża akkumulata minħabba nuqqas ta’ azzjoni għal snin kbar.

L-ikbar sfida ghal dan il-Patt Aħdar hi li l-bidla meħtieġa teħtieġ li tkun waħda li issir b’ġustizzja. It-trasformazzjoni ekoloġika teħtieġ li tkun soċjalment ġusta. Dan tagħmlu billi tpoġġi lin-nies mhux il-kapital jew il-profitti bħala l-konsiderazzjoni ċentrali tagħha. Il-bidla, iżda trid isseħħ illum qabel għada. Iktar ma ndumu nkaxkru saqajna, iktar ikun għoli l-prezz li jkollna nħallsu.

ippubblikat fuq Illum: il-Ħadd 18 ta’ Lulju 2021

Change must be fair

Achieving carbon neutrality is long overdue. It has long been obvious that an economy that is dependent on fossil fuel is not sustainable. The UNFCCC (United Nations Framework Convention for Climate Change) at its 2015 Paris summit finally agreed to plot the basic roadmap required. If we do not follow this roadmap, havoc is the name of the future.

Climate change is already here. However, its impacts can be much worse than what we are already experiencing: extremes of temperature, drought in some regions with floods in others. We see the disasters developing almost daily. It will get much worse before it can get any better.

The mean global temperature is rising. The measured increase varies between one region and another. In the Mediterranean, recent studies have indicated that here we are very close to surpassing a 1.5-degree Celsius rise over the pre-industrial age temperature. We can feel the impact already.

As an island state Malta should be at the forefront of the global climate change debate. Unfortunately, our country is among the laggards continuously seeking to avoid or minimise the action required at our end. Our size does not exempt us from our responsibilities towards the future.

Our slow take-up of renewable energy over the years and the institutional resistance to transport electrification are among the most obvious examples.

We do remember the insistence on the part of Maltese governments with the EU Commission that Malta renewable energy targets should be 10 per cent and not 20 per cent of the energy generated. Likewise, after a policy announcement in favour of transport electrification in 2017, four years down the line we are still without clear targets. The change will now have to be adopted at a quicker pace, and one which we are not yet prepared for.

The EU has unveiled a proposal intended to reduce greenhouse gas emissions by 55 per cent, compared to 1990 levels, by the year 2030, an intermediate target on the roadmap to carbon neutrality by 2050.

One of the measures proposed would require raising the share of the renewable energy generated to 40 per cent of the final energy consumption, meaning that Malta, within nine years, would be required to quadruple the renewable energy which it generates. This would be quite tough, in view of having repeatedly been successful in wriggling of our commitments over the years.

A de facto ban on petrol and diesel cars by 2035 would accelerate our path to electrification of transport. That is a target to be achieved within fourteen years. Locally, however, it will not solve much, if not coupled with a substantial decrease in private car usage.

The proposal to tax shipping and aviation fuel would undoubtedly have a considerable impact on islands and the peripheral states of Europe. It makes sense when applied to the European mainland which is more dependent on railways, a suitable alternative. In respect of islands and the peripheral states it will be certainly painful, even though it will, when applied, contribute to achieving emission reduction targets.

Tourism would be hit considerably by a tax on aviation fuel, dependent on the extent of the taxation rates applied.

The aviation and maritime sector are significant contributors of greenhouse gas emissions which have so far have avoided being addressed due to very effective lobbying over the years. The EU proposals would ensure that this will no longer be the state of affairs, dependent that is, on the taming of the lobbies!

Some have already described the proposals of the EU Commission as political suicide as their far-reaching impacts could trigger considerable social unrest. Achieving carbon neutrality is essential but the paths selected will be very painful, some more than others. In the ensuing discussion we have to ensure that while the essential decisions are taken without delay the poor and the most vulnerable are shielded from having to pay the accumulated cost of inaction over the years.

The biggest challenge we face is to ensure that the Green Deal is fair. The ecological transformation must be socially just and place people, not profits, as its central consideration. Change must however happen the soonest. The longer we postpone taking action the higher the price we will have to pay.

Published in The Malta Independent on Sunday : 18 July 2021

Il-lista l-griża: x’tistenna wara snin ta’ żero infurzar?

Fi stqarrija wara d-deċiżjoni tal-FATF (Financial Action Task Force) li tpoġġi lil Malta fuq il-lista l-griża tagħha, iċ-Chairperson ta’ ADPD Carmel Cacopardo qal:

“Ninsabu mnikktin bid-deċiżjoni, minkejja li din kienet mistennija.

Matul il-ġimgħa li għaddiet, il-kelliema tal-Gvern kienu qed jenfasizzaw li ttieħedu ħafna deċiżjonijiet biex jissaħħaħ il-qafa regolatorju. Li ma qalulniex hu li dan sar wara bosta snin ta’ infurzar żero. Li għal snin sħaħ l-awtoritajiet regolatorji bħall-FIAU kellhom fosthom kollaboraturi ta’ kriminali magħrufa bħal Silvio Valletta, eks-Deputat Kummissarju tal-Pulizija.

Kellna lill-grupp Parlamentari Laburista li irrifjuta li jikkundanna lil Konrad Mizzi u lil Keith Schembri għall-involviment tagħhom fl-iskandlu tal-Panama Papers.

Kellna lill-Kummissarju tal-Pulizija jirrifjuta li jinvestiga każijiet ta’ ħasil ta’ flus għal snin sħaħ. Huwa reċentement li Kummissarju tal-Pulizija ġdid għamel l-investigazzjonijiet u prosekuzzjonijiet possibbli.

Sfortunatament, l-azzjoni kontra l-ħasil tal-flus waslet tard. Saret ħsara konsiderevoli. Il-kompliċità kriminali tal-gvern f’dan kollu għamlet ħsara serja lill-ekonomija u lis-soċjetà. Huma dawk fil-livelli ta’ dħul aktar baxx li se jħossu l-biċċa l-kbira ta’ l-impatti negattivi ta’ dan kollu. Dawn jeħtieġu l-empatija tagħna. Dawn għandhom bżonn l-iktar protezzjoni f’dan il-mument.

Il-Gvern bl-appoġġ tal-Oppożizzjoni matul is-snin żviluppa kunsens nazzjonali dwar is-settur finanzjarju inkluż is-setup li jagħmilha possibbli għall-użu ta’ Malta bħala ċentru internazzjonali tal-evażjoni tat-taxxa. Flimkien mal-bejgħ tal-iskema taċ-ċittadinanza dan ikkontribwixxa aktar għall-erożjoni tar-reputazzjoni ta’ Malta bħala ġurisdizzjoni affidabbli.

Dan l-isfreġju sħiħ fuq Malta kien immexxi direttament minn Joseph Muscat u Edward Scicluna, eks-Ministru tal-Finanzi li ġie ppremjat bil-ħatra tiegħu bħala Gvernatur tal-Bank Ċentrali. Muscat spiċċa. Scicluna għandu bżonn isegwih malajr. Huwa għandu jew jirriżenja jew jitkeċċa minnufih.

Huwa pertinenti wkoll li nfakkru li dan it-taħwid kollu kien is-suġġett tal-ġurnaliżmu investigattiv ta’ Daphne Caruana Galizia li nqatlet għall-isforzi tagħha biex tinfurmana u tesponi l-elit kriminali. Tlifna ħajja ta’ mara, omm u ġurnalista.

Huwa essenzjali li tittieħed azzjoni immedjata biex tibda terġa’ tinbena r-reputazzjoni ta’ Malta. Dan għandu jinkludi r-revoka immedjata tal-iskema tal-bejgħ taċ-ċittadinanza u l-għeluq tal-lakuni legali li biddlu lil Malta f’bażi ta’ evazjoni tat-taxxa.”

Another fake consultation

Reading through the Green Paper entitled “Towards Cleaner Vehicles on Our Roads” it is evident that this consultation process is flawed. After being 4 years in the making, instead of proposing solutions it just asks questions which should have been answered by the Green Paper itself as part of the consultation process.

This is symptomatic of a government which has been continuously emitting conflicting signals on transport issues. The Green Paper recognises the obvious when it states that transport combustion emissions increased by 86 per cent over the period 1990-2018. The massive investment in unnecessary road infrastructure has been a major contributor in this respect, a point which is conveniently ignored by the Green Paper.

The proposed shift to cleaner vehicles on our roads is welcome, but on its own it is not sufficient. This measure will definitely reduce combustion emissions. It will however also shift the said emissions from our roads to the sources of the electrical energy used to electrify our roads. Knowing that government is planning to install a second interconnector to the Sicilian mainland for the supply of electricity it is clear that part of the emissions will be shifted 80 kilometres to the north, the rest to Delimara. It is still unclear how this will be reflected in the price we pay for electricity, as information on the matter is conveniently absent from the Green Paper.

The Green Paper rightly discusses the need to upgrade the skills of the technical personnel required in servicing and maintaining electric and hybrid vehicles. It also points towards the need for substantial investments in the infrastructure required particularly for charging points. However, it fails to address a number of points of controversy which require urgent resolution and should have been addressed through this consultation process.

The consumption of petrol and diesel is bound to decrease as a result of the drive towards the electrification of our roads. The rate of decrease of fuel consumption will depend on the manner in which the electrification exercise will proceed throughout the transition period. Why then has no moratorium been announced on the development and construction of new fuel stations? A number of controversial applications for fuel stations are still burdening the land use planning process when it should be crystal clear to all that in view of the electrification process, they will no longer be required. The consultation process is conveniently silent on the matter thereby encouraging unnecessary pressures on the planning process.

Simultaneously it is pertinent to point out that the sale of fuel contributes a substantial income to the exchequer which income will now slowly taper to near zero through the transition period. The Green Paper fails to volunteer information in this respect. How will this substantial income be substituted? Will the electrification process itself provide the substitute financial resources or will other areas of activity be tapped to make good? The amounts involved are substantial. In fact, the budgetary estimates for 2021 indicate a projected income of €154 million from excise duties on petroleum products. What are government plans for the substitution of this income? The Green Paper is once more completely silent on the matter.

The Green Paper refers to Low Emission Zones but it does not have the courage to make specific proposals. It is imperative that the transition period from now until the full electrification of our roads gradually adopts the identification of Low Emission Zones within which internal combustion engine vehicles will have a prohibited access. The Green Paper fails in this respect too.

The Green Paper refers to two studies which have been commissioned by the Cleaner Vehicles Commission on the electrification of our roads. These studies are not however available to inform this public consultation.

Notwithstanding having been announced four years ago, with ample time for preparation, this consultation process is deficient. It fails to address the basics: it fails to inform. It is a fake consultation.

published on The Malta Independent on Sunday : 20 June 2021

Jaqaw il-Covid attiv wara l-5pm?

Illum, f’Malta, tħabbru tnaqqis ta’ miżuri kontra l-Covid.

Fost oħrajn ir-restoranti ser ikunu jistgħu jiftħu sal-5 ta’ wara nofsinnhar.

Ħadd ma qalilna għaliex sal-5pm. Għaliex mhux sas-1pm jew sal-11pm? Kif waslu ghaliha din?

Jaqaw il-virus tal-Covid, f’Malta jibda jaħdem wara l-5pm?

Jista’ xi ħadd jispjegalna x’inhuma dawn ir-ragunijiet xjentifiċi li jiġġustifikaw li r-restoranti jiftħu sal-5pm u mhux inqas jew iktar?

Ftit iktar serjetà tagħmel il-ġid! Ikun għaqli li ma tippruvawx tinqdew bix-xjenza biex tiġġustifikaw l-arbitrarjetà

Meta l-istat jinkoraġixxi l-evażjoni tat-taxxa

F’indirizz li għamlet nhar it-Tnejn liċ-Chicago Council on Global Affairs, Janet Yellen, Segretarju għat-Teżor tal-Istati Uniti, ippreżentat l-argument favur taxxa minima applikabbli għall-korporazzjonijiet multinazzjonali fuq livell globali, irrispettivament minn fejn huma bbażati.  Proposta ta’ din ix-xorta, kif rappurtat min-New York Times, ikollha s-saħħa li żżomm lil dawn il-kumpaniji milli jċaqilqu l-profitti tagħħom minn post għall-ieħor biex jevadu l-ħlas tat-taxxi dovuti minnhom.

Meta jitnaqqsu it-taxxi biex tinġbed l-industrija u n-negozju, emfasizzat  Ms Yellen, hemm is-sogru li mmissu l-qiegħ: fejn ser tieqaf? Ma nistgħux nibqgħu sejrin hekk. Il-kompetittività mhiex biss kif kumpanija tmur fil-konfront ta’ kumpaniji oħra.  Hi ukoll il-mod li bih nassiguraw  li l-gvernijiet ikollhom sistemi ta’ ġbir ta’ taxxa li jkunu stabbli b’mod li jistgħu jiġbru biżżejjed fondi x’jinvestu f’servizzi publiċi u jkunu f’posizzjoni li jirreaġixxu fi żmien ta’ kriżi. Hu meħtieġ li ċ-ċittadini bejniethom jerfgħu b’mod ġust il-piż tal-finanzjament tal-gvern.”

Din il-materja hi diġa fuq l-agenda tal-Unjoni Ewropeja. Hi opposta b’qawwa minn Malta, il-Lussimburgu, l-Irlanda u pajjiżi oħrajn.  L-argument dwar l-armonizzazzjoni tat-tassazzjoni hu parti integrali mill-ġlieda kontra l-evażjoni tat-taxxa u l-ħasil tal-flus.

Hu ta’ sfortuna li Malta (u pajjiżi oħrajn) repetutament abbużat mis-sovranità tagħha fuq materji ta’ taxxa. Huwa riżultat ta’ dan l-abbuż repetut li l-proposta dwar l-armonizzazzjoni tat-taxxa qabdet l-art b’mod li issa hi appoġġata ukoll mill-Istati Uniti tal-Amerka.  Malta rmiet il-vantaġġ kompetittiv tagħha billi abbużat minnu repetutament. Il-ħsara lir-reputazzjoni tal-pajjiż hi għaldaqstant awto-gol mill-kbar.

Malta ma tistax tkun kredibbli fil-ġlieda kontra l-evażjoni tat-taxxa u l-ħasil tal-flus jekk ser tibqa’ tiffaċilita l-evażjoni tat-taxxa fuq skala internazzjonali.  Xi snin ilu il-Grupp tal-Ħodor fil-Parlament Ewropew kien ippubblika studju intitolat Toxic Tax deals: when BASF’s tax structure is more about style than substance. Dan ir-rapport kien svela kif tul is -snin, il-kumpanija Ġermaniża ġgant tal-kimika BASF kien irnexxielha tevita u tiffranka l-ħlas ta’ biljun euro f’taxxi fuq 4 snin billi użat lill-Malta għal dan l-iskop. Dan sar billi kumpanija sussidjarja ġiet reġistrata f’Malta u t-taxxi dovuti, għax l-azzjonisti mhux residenti f’Malta, ħadu lura 6 euros minn kull 7 li kellhom iħallsu f’taxxa!

Il-każ tal-Korporazzjoni Amerikana Apple fl-Irlanda, kif nafu, wassal għall-evażjoni ta’ 13-il biljun euro f’taxxi. L-iskandlu Luxleaks fil-Lussimburgu ukoll wera kif dan il-pajjiż żgħir fost il-fundaturi tal-Unjoni Ewropeja ukoll kien qed jinkoraġixxi l-evażjoni tat-taxxa.

Dawn huma ftit mill-eżempji. Bla dubju hemm bosta oħra li s’issa huma moħbija mill-iskrutinju pubbliku. Bħala riżultat ta’ dan kollu madwarna għaddejja evażjoni ta’ biljuni ta’ euro ta’ taxxi, kontinwament. Malta, l-Irlanda, il-Lussimburgu u xi pajjiżi oħra jiġbru parti żgħira mit-taxxi dovuti bħala ħlas talli jippermettu din l-evażjoni ta’ taxxa fuq skala pjuttost kbira.

F’Malta dan kollu kien possibli bħala riżultant tal-hekk imsejjaħ “kunsens nazzjonali” bejn il-PLPN dwar il-qasam finanzjarju. “Kunsens” li ilu fis-seħħ numru ta’ snin. Il-ħsara lir-reputazzjoni ta’ Malta li seħħet u għad qed isseħħ bħala riżultat ta’ dan kollu, għaldaqstant, ma jġorriex il-Partit Laburista waħdu. Il-Partit Nazzjonalista ukoll għandu resposabbiltà xi jġorr. Għalhekk fuq dawn il-materji in-Nazzjonalisti u l-Labour dejjem iħokku dahar xulxin.  

Sfortunatament l-evażjoni tat-taxxa u l-ħasil tal-flus huma ħafna drabi konnessi. Bosta drabi fejn issib waħda issib l-oħra ukoll.

It-triq il-quddiem m’għandiex ikollha impatt fuq is-sovranità fil-qasam tat-tassazzjoni kif determinat mit-trattati Ewropej permezz tal-ħtieġa tal-unanimità f’materji konnessi mat-taxxa. Imma hemm bżonn urġenti li l-qasam tal-politika fiskali ukoll jinbena fuq prinċipji etiċi b’saħħithom. U mhux dan biss. Għandu jkun assigurat darba għal dejjem li Malta ma tibqax tiddependi minn dħul ġej mill-evażjoni tat-taxxa.

Għax id-dipendenza tal-ekonomija Maltija fuq l-evażjoni tat-taxxa (u l-bejgħ tal-passaporti) hi ta’ inkwiet kbir għall-pajjiż. L-industrija tal-evażjoni tat-taxxa hi sors ta’ dħul kif ukoll ta’ impiegi li it-tnejn li huma inevitabilment jintilfu fi żmien qasir. Wasal iż-żmien li nippjanaw għal futur nadif, futur li mhux iktar dipendenti fuq l-evażjoni tat-taxxa.

Ippubblikat fuq Illum: il-Ħadd 11 t’April 2021

When the state encourages tax evasion

In a speech delivered on Monday to the Chicago Council on Global Affairs, Janet Yellen, US Treasury Secretary, made the case for a global minimum tax applicable to multinational corporations irrespective of where they locate their headquarters. Such a proposal, reported the New York Times, would prevent companies from shifting profits to evade taxes.

Lowering tax rates to attract business, emphasised Ms Yellen, is a race to the bottom which has to be addressed. Competitiveness is not just how companies fare against other companies. It is also about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods and respond to crisis, and that all citizens fairly share the burden of financing government.

This issue is already on the agenda of the EU facing fierce opposition from Malta, Luxembourg, Ireland as well as others. The issue of tax harmonisation is an integral part of the fight against tax evasion and money laundering.

It is unfortunate that Malta (and others) have been repeatedly abusing its tax sovereignty. It is as a result of such repeated abuse that the proposal for tax harmonisation is gaining ground such that it now has the support of the United States of America too. As a result of greed Malta has squandered a competitive advantage by abusing it repeatedly and continuously. The resulting reputational damage is hence an own goal.

Malta (and the other countries) cannot be credible in the declared fight against tax evasion and money laundering if it keeps facilitating tax avoidance on an international scale. Some years back the Green Group in the European Parliament had published a study entitled Toxic Tax deals: when BASF’s tax structure is more about style than substance. This report reveals that over the years, the German chemical giant BASF used Malta to avoid the payment of one billion euros in taxes. This was done using the “legal” possibility to have tax refunds of up to six sevenths of the tax due in such cases where shareholders are not resident in the Maltese islands. Tax avoidance is tax evasion sanctioned by the state.

The Apple Corporation case in Ireland as a result of which another €13 billion in taxes were avoided is another example of tax evasion sanctioned by the state of Ireland. Luxleaks had also revealed countless of other examples as a result of which Luxembourg too embarked on state encouraged tax-evasion.

These are just some examples of many: the proverbial tip of the iceberg. There are undoubtedly countless of others, currently below the radar of public scrutiny, as a result of which the payment of billions of euros in taxes are being continuously avoided. Malta, Ireland, Luxembourg and other countries receive a small part of the actual tax due as a result of facilitating this state encouraged tax evasion.

Locally this scam is the result of the PNPL “national consensus” on financial institutions and fiscal policy in force for a number of years in Malta. The responsibility for the resulting reputational damage is thus not one to be shouldered by the Labour Party on its own, it has help from the PN which has continuously buttressed this abusive behaviour.

Unfortunately, tax evasion and money-laundering are inseparable twins!

The way forward need not impact the tax sovereignty afforded by the EU treaties through the unanimity rule on taxation issues. However, it necessitates ensuring that policy on all fiscal issues is also founded on sound ethical principles.

In addition to ensuring that fiscal policy is not in any way unethical it is about time that Malta does not any more, in any way, depend on tax avoidance.

The dependence of Malta’s economy on tax avoidance (and the sale of citizenship) is very worrying. The tax avoidance industry is a source of both revenue to the state and employment opportunities, both of which will be lost in the not-so-distant future. It is about time that we start planning for a cleaner future, a future that is, which is not dependent on the tax avoidance industry!

Published in the Malta Independent on Sunday : 11 April 2021

The fragility of democracy

The events on Capitol Hill in Washington last Wednesday clearly show the fragility of democracy. We should never take it for granted.

The storming of Capitol Hill by Trump’s mob has damaged American democracy, which damage will be felt for many years to come. Damage which will take considerable time to heal.

Instigating and making use of violence for political ends, to instill fear and condition political opponents is nothing new. It has been used in countries and by politicians of dubious democratic credentials since time immemorial. On these islands we have had more than our fair share of this throughout the years.

In my younger days I used to live in Valletta, one block away from Parliament. We were used to having “spontaneous demonstrations” whenever Parliament had some hot item on its agenda, or whenever the political climate was tense, which was quite often. An orgy of violence many a time was the anticipated conclusion of such “spontaneous demonstrations” as the business community can confirm.  This is what incited crowds do: they transform themselves into deadly weapons used unscrupulously by those who pull the strings to silence or try to condition their political opponents.

Whenever the mob was let loose it left a trail of damage, not just physical damage, but more importantly reputational damage which takes quite a time to heal and repair.

Some of you may remember when a bull was let loose in the streets of Paola in September 1976 as part of the then election victory celebrations. After being force-fed a whole bottle of whisky it ended being directed towards the local PN club where it destroyed everything in its path.

The setting on fire of The Times in Valletta and the subsequent orgy of violence of the 15 October 1979 is another instance when instigation directed at highly charged political-mobs ends destroying everything in sight. The reputational damage is the most serious in such circumstances.

The objective, in such instances is always the retention, buttressing and consolidation of raw political power. Fortunately, this is history now, but it still lingers on in the collective memory, the cause of occasional collective nightmares.

The international media has rightly reacted sharply to the developments down Pennsylvania Avenue. In a couple of hours, in addition to the loss of four lives, injury to at least 14 police officers and damage to property, the Trump mob has inflicted lasting damage to American democracy.

Do not just blame Donald Trump for the chaos at Capitol Hill on Wednesday. His enablers have a sizeable share of the blame. The agitators were not just those in the streets in hoodies and army fatigues. They were also in suits, products of Yale, Harvard, Stanford and Princeton Universities sitting in front of House Speaker Nancy Pelosi and Vice President Mike Pence, participating in the joint session of the US Congress.

Both Trump as well as his enablers have blood on their hands.

The rule of law and the respect of democratic institutions are not just for export! The United States of America needs to practice what it preaches in order to start restoring its credibility.

As a result of the election of Joe Biden, described as “sleepy Joe” by Donald Trump throughout the electoral campaign, the US could slowly start the difficult uphill path to reconciliation. Having the support of influential minorities will undoubtedly be an asset in achieving this objective. The successful mobilisation by the Biden campaign of the black vote throughout the United States was pivotal in achieving its electoral success, the latest being the election for the first time in the last thirty years of two Georgian Democratic Senators. One must now look ahead towards the future to reconstruct the social and democratic infrastructure dismantled in the recent past.

Democracy is very fragile. It is easily damaged and takes quite a time to heal. We should never take democracy for granted. It is continuously under threat and should be defended assiduously every day.

Published on The Malta Independent on Sunday: 10 January 2021

Writing off future generations

Our actions today are a first draft in designing the future. They are tomorrow’s blueprint. Our future as well as that of future generations.

The ice sheets are melting at a faster rate than ever before. The resulting sea-level rise will obliterate coastal settlements around the globe. Even the Maltese islands will be impacted by a sea-level rise, irrespective of its magnitude. The larger the sea-level rise the more severe the impacts.

On a global level the sea is rising around 3 millimetres per annum. This varies with region. This variation may be insignificant to the naked eye and as result many would not even notice it.

No one can state with certainty as to how much the sea level will eventually rise. It is however clear to the scientific community that an increase in the mean global temperature is a major contributor. Islands and coastal communities all around the world will bear the brunt of this sea-level rise.

In the Pacific Ocean the sea has risen at a rate of three times the global average. A number of low-lying islands have already disappeared below the sea.  In the Indian Ocean, The Maldives, a major touristic destination, risks losing 77 per cent of its land with a 50-centimetre sea-level rise. It will completely disappear if the sea level rises to a metre or more.  

There is a time lag between our actions and sea-level rise such that we can substantially decrease sea-level rise in the future if we act appropriately now.

This is the reason underlying the EU’s policy of carbon neutrality, that is taking steps to ensure that net carbon emissions are reduced to zero by 2050, preferably earlier.

The Mediterranean Sea is a hotspot of climate change. Mediterranean experts on climate and environmental change within the framework of the UNEP Mediterranean Action Plan have drawn up a report entitled “Risks associated to climate and environmental changes in the Mediterranean Region”. This report points at the enormous challenges facing the Mediterranean due to the projected rising temperature in the region.

Without policy change it is estimated that the Mediterranean Region will, on average, be 2.2 degrees warmer in 2040 than it is today. This will have a considerable impact on water resources, agricultural production and health, amongst other issues. By 2100 without meaningful policy change this could lead to a one metre rise in sea level impacting severely the coastal communities in the Mediterranean.

The tourism industry, with most of its facilities situated along the coastline, will be obliterated. The impacts of climate change will be so severe that Covid-19 impacts will seem to be child’s play in comparison.

All over the world governments have been reluctant to act and take definite action on climate change to limit the potential temperature rise to 1.5 degrees Celsius and definitely to not more than 2 degrees Celsius. The commitments made at the Paris Climate Summit in 2015 are a welcome first step, but they are certainly not enough.

It has been estimated that if all commitments made in Paris are adhered to, we would still be on track to hit a temperature increase in excess of the two-degree limit. This would lead to a global disaster.

The first to bear the brunt will be islands all around the globe followed closely by low-lying coastal areas. This is the reason for island states being so vociferous in Climate Change fora, insisting for more action. It is unfortunate that Malta’s voice is not sufficiently heard in such fora. It is about time that we get our priorities right. Our relative silence is writing off future generations in the Mediterranean.

published in The Malta Independent on Sunday : 3 January 2021

Ambaxxati b’daqs ta’ raħal

L-ambaxxata Amerikana nbniet 9 snin ilu fuq medda kbira ta’ art f’ Ta’ Qali li nxtrat mingħand il-Gvern Malti għas-somma ta’  €14.6 miljuni. L-ambaxxata f’Ta’ Qali hi mibnija fuq art b’qies ta’ madwar 4 ettari, jiġifieri 40,000 metru kwadru.

Iktar kmieni din il-ġimgħa l-Awtorità tal-Ippjanar approvat permess ta’ żvilupp biex tinbena ambaxxata Ċiniża f’Pembroke fuq art b’qies ta’ madwar 2 ettari, jiġifieri 20,000 metru kwadru.  

Għalkemm il-kumpless tal-ambaxxata Ċiniża ser ikun madwar nofs fid-daqs meta mqabbel ma dak Amerikan f’Ta’ Qali xorta hu kbir wisq. L-art li fuqha ser jinbena dan il-kumpless inxtrat mingħand il-Gvern Malti għas-somma ta’ €7,880,000.

Għalfejn dawn il-pajjiżi barranin qed jitħallew jibnu l-ambaxxati tagħhom fuq art daqshekk kbira?  Jekk verament jeħtieġu dan l-ispazju għaliex ma ġewx imħajra biex jirrestawraw xi bini qadim, preferibilment storiku, b’benefiċċju għall-komunità Maltija?

Kemm ser indumu ma jkollna xi talba oħra għall-iżvilupp ta’ kumpless ieħor għal ambaxxata enormi? Forsi mill-Federazzjoni Russa?

Id-dibattitu pubbliku dwar l-Università Amerikana f’Malta suppost li għamel lil ħafna nies iktar konxji. Imma jidher li ma tgħallmu xejn mid-dibattitu pubbliku li wassal biex l-unika parti ta’ din l-Univeristà li illum qed tiffunżjona qegħda flok it-tarżna f’Bormla. Il-bini storiku li kien jifforma parti mit-tarżna ta’ Bormla, l-imħażen tal-Kavallieri tas-sbatax-il seklu u l-workshops tal-Ammiraljat Ingliż tad-dsatax-il seklu ġew restawrati u ħadu ħajja ġdida. Dan kollu issarraf f’ġid ambjentali għall-pajjiż kollu u l-ħarsien ta’ art f’Marsaskala minn żvilupp li kien jeqridha.

Jekk nistaqsu għaliex dawn l-ambaxxati kbar, daqs raħal, qatt m’hu ser ikollna tweġiba onesta. Għax hu ovvju li apparti x-xogħol konsulari normali u l-iżvilupp ta’ relazzjonijiet tajba mad-dinja tan-negozju u mal-komunitajiet lokali, fir-realtà, dawn l-ambaxxati huma “widna” iffukata biex tisma’ dak li qed jiġri fir-reġjun tal-Mediterran.

Uħud iħobbu jiddeskrivu kemm lill-iStati Uniti kif ukoll lir-Repubblika Ċiniża bħala ħbieb kbar ta’ Malta. Ir-realtà hi ftit differenti. Hu prinċipju bażiku tal-politika barranija li l-pajjiżi m’għandhomx ħbieb, għandhom biss interessi! Ir-relazzjonijiet diplomatiċi, imbagħad, iservu biex iġibu l-quddiem dawn l-interessi!

Il-posizzjoni ta’ Malta fil-Mediterran tagħmilha idejali bħala ċentru fejn tisma’ u tosserva. Dan, hu interess ewlieni li minħabba fih kemm l-Istati Uniti kif ukoll ir-Repubblika Ċiniża għandhom bżonn spazju kbir.

Id-dibattitu riċenti dwar il-possibiltà ta’ ftehim li jirregola l-militar Amerikan f’pajjiżna (Status of Forces Agreement : SOFA) hu indikattiv. Il-kummenti li smajna u qrajna jagħtu idea żgħir ta’ dak li kien għaddej madwar il-mejda.  

F’pajjiżi kbar, ambaxxati kbar jistgħu jagħmlu sens. Imma Malta, tista’ tgħaddi mingħajrhom. M’għandniex bżonn ambaxxati kbar biex intejbu r-relazzjonijiet mal-Istati Uniti jew iċ-Ċina.

L-ambaxxata tal-Istati Uniti f’Ta’ Qali issa ilha mibnija u ilha topera 9 snin. Imma l-ambaxxata Ċiniża għadha fuq il-pjanta. MInkejja li għadha kif ġiet approvata l-ambaxxatur Ċiniż għad għandu ħin biex jaħseb ftit dwar kif jista’ jindirizza n-nuqqas ta’ spazju li għandu mod ieħor. Jista’ jikunsidra r-riabilitazzjoni ta’ bini qadima, possibilment bini storiku minflok ma jibni ambaxxata daqs raħal.  

Jekk jagħmel hekk ikun qed jittrasforma problema f’opportunità.

Qatt mhu tard, sur Ambaxxatur.

Ippubblikat fuq Illum : Il-Ħadd 1 ta’ Novembru 2020