A minimum income for a decent living

Within the European Union structures a debate has commenced on adequate minimum wages throughout the Union. Commission President Ursula von der Leyen had stated on her appointment that she would be proposing a legal instrument to ensure that every worker in the Union has a fair minimum wage.

The consultation process within the EU was launched over one year ago. As a result, a proposal for an EU Directive on adequate minimum wages has been finalised together with a number of supporting documents, including a 240 page long extensive impact assessment

In an explanatory memorandum published by the EU together with the text of the proposed Directive it is emphasised that “in the majority of EU Member States with national statutory minimum wages, minimum wages are too low vis-à-vis other wages or to provide a decent living even if they have increased in recent years.” In its impact assessment, the EU Commission calculated that an increase of national minimum wages according to the double decency threshold (60% of the median and 50% of the average wage) would improve the wages of around 25 million workers in Europe.

Malta is one such state with a low minimum wage which does not suffice, in particular, for vulnerable categories. A Caritas study published last Friday once more identifies short-comings of the minimum wage in Malta, when this is the only source of income for a number of vulnerable households.

The Caritas study entitled “A Minimum Essential Budget for a Decent Living 2020” follows previous studies published by Caritas in 2012 and 2016 as a result of which detailed research illustrates how the basic needs of vulnerable households, cannot be addressed if these households are dependent on one minimum wage as their only source of income.

The latest Caritas study concludes that a household comprising two adults and two children require €13947 annually as a minimum for a decent living, while if the household consists of a lone parent and two children this requirement drops to €11038. This is well below the 2021 statutory minimum wage which is currently €181.08 per week even if one also takes into consideration the June and December statutory bonus. On the other hand, the requirements of a household consisting of an elderly couple adds up to €8157 annually, concludes the Caritas study. This last figure, which is manageable, is however qualified in the Caritas report in that it may vary substantially due to the myriad of costs specific to the lifestyle and health status of the elderly.

The above excludes cases where the minimum wage earner needs to fork out expenses for a privately rented dwelling, in which case subsistence is practically impossible. The Caritas 2020 report emphasises that impact of the rent due “can dramatically affect the financial circumstances and quality of life of low-income households”.

The agreement signed by government with the social partners in 2017 as a result of which after one year in receipt of a minimum wage there are mandatory increases of €3 per week and an additional €3 per week after the second year, was a step forward and without doubt lessens the burdens of minimum wage earners. But this is certainly not enough. An overhaul of the method of calculation of the minimum wage is essential as this has to be reflective of real and actual needs. It has to be capable of sustaining a dignified living.

The recent news that the Maltese government is among the EU Member states which are objecting to EU legislation that would set up a framework regulating the minimum wage is worrying as the Maltese Government has been reluctant to take steps ensuring that the minimum wage is revised periodically to reflect actual needs. ADPD has long been advocating for this revision. However, the Labour government has repeatedly indicated that it was more interested in helping the wealthy get even wealthier. It was more interested in defending the crooks in its midst.

Our society needs to guarantee a basic income for all which is sufficient for a decent living. A number of countries are carrying out trials to identify the best way forward in this respect. The Universal Basic Income or UBI is being tested in a number of countries through pilot projects.

There is much to learn not just from these pilot projects. Malta’s Covid-19 wage supplement, for example, was a worthy initiative which merits further consideration. If properly applied it can form the basis of a long-term initiative to guarantee a minimum income for all. Obviously, it is easier said than done but we need to start some long-term planning which addresses the need to guarantee a minimum income for all thereby ensuring that all have access to sufficient resources to live a dignified life. This is the next step for the welfare state.

published in The Malta Independent on Sunday: 7 February 2021

Edward Scicluna u l-bajtar tax-xewk

Iktar kmieni din il-ġimgħa, l-President tal-Kummissjoni tal-Unjoni Ewropea, Ursula von der Leyen, ippreżentat lill-Parlament Ewropew pjan ta’ €750 biljun biex inqumu fuq saqajna. Pjan li jista’ jiġġenera investiment stmat €3.1 triljun fl-ekonomija Ewropea. Permezz ta’ għotjiet flimkien ma’ self, il-Kummissjoni Ewropea qed tfittex li tegħleb l-impatti ekonomiċi negattivi tal-Covid-19 kif ukoll li tagħti bidu għall-azzjoni meħtieġa biex ikun implimentat il-Ftehim l-Aħdar (the Green Deal).

It-triq biex nirkupraw mhiex faċli. Mhux il-każ li mmorru lura għal kif konna. Dak spiċċa. Irridu nimxu l-quddiem lejn normal ġdid. Li nintegraw flimkien il-ħidma biex nirkupraw mill-impatti tal-pandemija flimkien mal-azzjoni meħtieġa dwar it-tibdil fil-klima mhux ser tkun faċli imma hi essenzjali u mhux possibli li tkun posposta. Kif ġie emfasizzat fuq Euroactive nhar l-Erbgħa, it-triq biex nirkupraw tiddependi minn ħafna kundizzjonijiet konnessi mal-ambjent. 25 fil-mija tal-finanzjament propost mill-Kummissjoni Ewropeja hu fil-fatt marbut ma’ ħidma klimatika.

Edward Scicluna, il-Ministru tal-Finanzi, fl-ewwel reazzjoni tiegħu għall-pjan tal-Kummissjoni ikkummenta mħasseb dwar miżuri prattiċi konnessi mal-klima. Bħala gżira ser inweġġgħu ħafna qal, jekk jindirizzaw l-emissjonijiet tal-ajruplani u l-vapuri. Il-pjan, qal Edward Scicluna, jixbah lill-bajtar tax-xewk. Scicluna jippreferi li ma jsir xejn ħlief paroli. L-anqas m’hu jieħu pjaċir b’dak li qed jingħad dwar it-tassazzjoni tal-kumpaniji, avolja konxju li m’għadx baqa’ żmien biex fl-Unjoni Ewropea tħajjar kumpaniji jibqgħu jħarbu l-obbligi tagħhom tal-ħlas tat-taxxi.

Hu korrett li jingħad li ser nintlaqtu bil-miżuri dwar il-klima. Hekk għandu jkun, għax il-ħidma tagħna għandha impatt fuq il-klima. Nistgħu imma ninnegozjaw biex dawn l-impatti fuqna jonqsu mingħajr ma nnaqqsu l-impenn (reali) tagħna biex ikunu indirizzati l-impatti klimatiċi tal-industrija tal-avjazzjoni u tal-vapuri. Bla ebda dubju dan ser ikun ifisser impatti sostanzjali kemm fuq it-turiżmu kif ukoll fuq il-kummerċ.

Dan ma jistax ikun evitat għax dawn l-industriji għandhom l-obbligu li huma ukoll jġorru fuq spallejhom l-impatti li qed jikkawżaw. Dak hu li wegħdna bħala pajjiż fis-Summit ta’ Pariġi dwar il-klima. Wasal il-waqt li nwettqu dak li ġie imwiegħed. Biex niġu fuq saqajna irridu nfasslu l-futur mill-ġdid. Il-ħsara li teħtieg li tissewwa mhiex biss dik ekonomika u ambjentali. Jinħtieġ li tul l-Unjoni Ewropea kollha nibnu s-solidarjetà fuq pedamenti sodi. Dak li Edward Scicluna jqis bħala l-bajtar tax-xewk huma fil-fatt l-għodda bażiċi tas-solidarjetà.

Għax is-solidarjetà hi meħtieġa mhux biss meta aħna bir-raġun kollu nokorbu ma’ kull mewġa ta’ immigranti fl-ibħra Maltin. Is-solidarjetà hi dak li Malta tinjora meta tfittex li tkun attraenti għal min irid jevadi t-taxxi f’pajjiżu: dawk li jħallsu ftit lill-kaxxa ta’ Malta biex jevitaw milli jħallsu l-biljuni band’oħra. Il-politika dwar l-armonizzazzjoni tat-tassazzjoni fl-Unjoni Ewropea hi r-risposta bis-sens għall-politika li tinkoraġixxi l-evażjoni tat-taxxa f’Malta, l-Olanda, il-Lussimburgu u l-Irlanda.

L-Oxfam f’rapport ippubblikat fl-2019 u ntitolat “Off the Hook. How the EU is about to whitewash the world’s worst tax havens” temfasizza li “l-Irlanda, il-Lussimburgu, Malta u l-Olanda huma fost il-pajjiżi li l-iktar jinkoraġixxu l-evażjoni tat-taxxa fid-dinja, b’mod li jagħmluha possibli li kumpaniji kbar jirnexxielhom iħallsu ammont żgħir ta’ taxxa. Per eżempju, ir-regoli internazzjonali tat-taxxa jippermettu lill-Vodafone Group Plc biex jallokkaw kważi 40 fil-mija tal-profitti taxxabbli tagħhom f’Malta u l-Lussimburgu.”

Rajna ukoll rapporti dwar il-BASF, ġgant fl-industrija kimika fil-Ġermanja, li jispjegaw kif din tevadi t-taxxa. Fir-rapport tal-Ħodor Ewropej ippubblikat fl-2016, intitolat “Toxic Tax Deals. When BASF’s Tax Structure is more about style than substance” kien spjegat kif il-BASF irnexxiela tevadi madwar biljun euro f’taxxa, u minflok ħallset ammonti żgħar bil-kompliċità ta’ Gvernijiet Maltin: ħomor u blu.

Jeħtieġ li l-ewwel u qabel kollox nirkupraw l-imġieba etika tagħna, anke qabel ma nirkupraw ekonomikament u ambjentalment. Ir-riġenerazzjoni tal-valuri tagħna għandha tkun prijorità qabel ma nippruvaw insewwu l-kaxxa ta’ Malta li minnha, bħalissa ħerġin il-flus maħmuġin akkumulati mill-bejgħ tal-passaporti. Flejjes miġburin minn persuni bħall-biljunarju Russu Boris Mints, l-Eġizzjan Mustafa Abdel Wadood, il-biljunarju Ċiniż Liu Zhongtian, in-negozjant Russu Pavel Melenikov u l-Iżraeli Anatoly Hurgin, li irnexxielhom jiżgiċċaw minn eżami suppost rigoruż u ngħataw iċ-ċittadinanza Maltija: però xorta spiċċaw għaddejjin proċeduri kriminali f’diversi pajjiżi oħra primarjament dwar frodi u ħasil tal-flus!

F’dan iż-żmien ta’ ħtieġa l-Ministru tal-Finanzi Edward Scicluna spiċċa dipendenti fuq flejjes li oriġinaw minn dawn is-sorsi maħmuġin. Ma tkunx esaġerazzjoni li ngħid li spiċċa dipendenti minn flus li oriġinaw mill-kriminalità.

Fir-reazzjonijiet tagħha għall-proposti tal-Kummissjoni tal-Unjoni Ewropea Evelyne Huytebroech, waħda miż-żewġ mexxejja tal-Partit tal-Ħodor Ewropej, emfasizzat li din il-proposta flimkien ma dik tal-Parlament Ewropew u l-proposta Franco-Tedeska ilkoll qed jaraw proċess ta’ self komuni. Dan hu pass il-quddiem għas-solidarjetà Ewropea. Għax is-solidarjetà tinbena bil-mod u bit-tbatija. Imma għal Edward Scicluna dan kollu bajtar tax-xewk!

ippubblikat fuq Illum :il-Ħadd 31 ta’ Mejju 2020

The recovery plan and Edward Scicluna’s prickly pears

Earlier this week, EU Commission President Ursula von der Leyen, presented for the consideration of the European Parliament a recovery plan worth €750 billion but which can unleash an investment estimated at €3.1 trillion in the EU economy. Through a combination of loans and grants the EU Commission seeks to integrate the reversal of the economic downturn resulting from the Covid-19 pandemic together with the action required to implement the Green Deal.

The road to recovery will be tough. It is not the case of going back to normal but of going forward to a new normal. Integrating the recovery from the pandemic impacts with climate change action will not be easy but it is essential and cannot be postponed. As emphasised by Euroactive on Wednesday, the road to recovery has plenty of green strings attached. 25 per cent of the funding proposed by the EU Commission is in fact earmarked for climate action.

Finance Minister Edward Scicluna, in his first reaction to the recovery plan, voiced concern on practical climate action measures. It hurts, he says, to address air traffic emissions or shipping pollution. As an island this would impact us substantially. The proposed recovery plan is comparable to prickly pears, he stated. He prefers the status quo: all talk and little walk. Edward Scicluna is not amused by rumblings heard on corporate taxation even though he is well aware that the days of attracting corporations seeking tax havens within the EU may well be numbered.

It is correct to state that we will be impacted substantially. We can however negotiate to reduce such impacts without diminishing our commitment to addressing climate change impacts of the airline and shipping industry. This would mean significant impacts on tourism and trade. These however cannot be avoided as climate change impacts have to be internalised: that is they have to be shouldered by the industries generating them. This is what we promised in the Paris Climate Summit. Promises that we must now honour.

Operation recovery must re-design the future. It must not be just an economic recovery or an environmental rebirth. It must also be a recovery of practical solidarity all over the Union. What Edward Scicluna views as prickly pears are in fact instruments of solidarity.

Solidarity is not just what we rightly cry for when immigrants crash through our borders. Solidarity is what we ignore when Malta insists on being attractive to tax evaders: those who pay peanuts to the Maltese exchequer in order to avoid paying billions elsewhere. The issue of tax harmonisation on an EU level is the sensible response to the tax haven fiscal policies of Malta, the Netherlands, Luxembourg, and Ireland.

Oxfam in its 2019 report entitled “Off the Hook. How the EU is about to whitewash the world’s worst tax havens” emphasises that “Ireland, Luxembourg, Malta and the Netherlands are among the most significant tax havens in the world, enabling some of the biggest corporations to pay minimal amounts of tax. For example, currently, international tax rules allow Vodafone Group Plc to allocate nearly 40% of its taxable profits to Malta and Luxembourg.” We have also seen reports on BASF clearly explaining how the German chemical giant avoids paying taxes due. The European Greens report “Toxic Tax Deals. When BASF’s Tax Structure is more about style than substance” published in 2016 had outlined how BASF had successfully avoided close to a billion euros in tax, paying just a small amount thanks to Maltese governments blue and red.

The recovery must be primarily ethical before being economic and environmental. Regenerating our values should be a priority higher on the list than the regeneration of our coffers, currently dishing out dirty money originating from the sale of citizenship schemes. Monies collected from the likes of Russian billionaire Boris Mints, Egyptian national Mustafa Abdel Wadood, Chinese billionaire Liu Zhongtian, Russian businessman Pavel Melenikov and Israeli Anatoly Hurgin, who slipped through what is described as a rigorous due diligence process and gain Maltese citizenship only to be prosecuted in different jurisdictions for various crimes primarily fraud and money laundering.

It is indeed telling that in time of need Finance Minister Edward Scicluna is dependent on monies originating from such dubious sources! It would not be an exaggeration to state that he is dependent on the proceeds of crime.

In her reaction to the EU Commission proposals Evelyne Huytebroech co-Chair of the European Greens emphasised that the EU Commission’s proposal together with the proposals of the EU Parliament and the Franco-German initiative all foresee a mutualised debt instrument: a major breakthrough for European solidarity. Solidarity is constructed slowly and painfully, while Edward Scicluna juggles with his prickly pears.

published in The Malta Independent on Sunday : 31 May 2020

Solidarity: practising what we preach

In the local political lexicon, at times, the significance of Malta’s EU membership is incorrectly equated to the financial input of the union in the financing of the development of the local infrastructure, both physical and social. The role of the cohesion funds and regional development funds, in their various forms, are, at times perceived as the be-all of Malta’s EU policy!

Solidarity is a founding principle embedded in the European Union Treaties: however, it is not sufficiently reflected in the behaviour of both EU states and EU citizens. Solidarity signifies the existence of a commitment for mutual support in time of need. As most are aware, solidarity is much more than a financial commitment of the stronger members of the union who are net contributors to the EU budget. Beyond financial assistance, unfortunately, solidarity has time and again proven easier said than done for the EU member states.

Solidarity is a two-way process: we speak of the solidarity which we expect of others without giving sufficient attention to the solidarity due from us, in particular to our neighbours. Solidarity due to us is a given, however a multitude of reservations seem to apply to the solidarity which we are expected to deliver to our neighbours in time of need.

The criminalisation of NGOs who save lives (thus filling the gaps created by EU state inaction and dereliction of duty) together with the closure of our ports for humanitarian missions is an affront to the basic principles of solidarity. We should not shift onto NGOs and onto the refugees the failure of the Libyan state to control those who are making a quick buck from the refugees’ plight.

The Covid-19 crisis has once more identified that within the European Union, in time of need, when it really matters, there exists a solidarity deficit. Ursula von der Leyen, President of the EU Commission, has earlier this week publicly apologised to the state of Italy for not helping out at the start of the coronavirus outbreak. Addressing the European Parliament, she stated that “too many were not there in time when Italy needed a helping hand at the very beginning”.

Saying sorry is however not enough. A genuine “sorry” needs to be matched by concrete action which changes behaviour, if it has to mean anything at all.

A time of crisis is a time for more Europe. It is a time where the relatively strong should seek the weak to help them out in overcoming the difficulties being faced. In a time of crises no one should beg for help. Solidarity should be forthcoming almost automatically and without any conditions attached.

As we are well aware, this is not news to us, as we have had to bear a lack of solidarity in respect of the impacts of immigration incident on our shores time and again. Together with other EU member states along the extensive borders of the Union, time and again Malta has been left on its own to face the music. There is as yet no general acceptance within the Union that this is an EU problem which requires an EU solution.

In Malta, at times, we fail to understand that the effectiveness of the EU in any specific area is dependent on the reactions from the individual member states.At times, there has been limited agreement on voluntary action to relocate refugees saved from drowning as well as those arriving in Malta on their own or else assisted by NGOs.

So far, the EU has generally been able to agree on one line of action in tackling the influx of refugees: throwing money at the problem. Development aid has also been used with limited success in aiding the rebuilding of those parts of Africa which have collapsed.

Solidarity should be a fundamental value in our operations as a state not just as an EU member state but more so as a state which claims adherence to basic Christian values. Our solidarity is a value which should stand on its own two feet without being conditioned by whether others act appropriately or not. Do unto others what you expect others do to you. Many a times have we heard this said. Isn’t it about time that we practice what we preach?

published in The Malta Independent on Sunday : 26th April 2020

Patt Ġdid Aħdar

Patt Ġdid Aħdar (Green New Deal) hi tweġiba għall-kriżijiet li qed tiffaċċja s-soċjetà tagħna. Għandu jkollu l-mira li jirrikonċila l-istil ta’ ħajjitna – kif ngħixu, kif nipproduċu u x’nikkunsmaw – mal-limiti prattiċi u fiżiċi tad-dinja madwarna.

Hu vjaġġ li jista’ jittrasforma l-ħajja f’kull settur b’riformi radikali li jorbtu katina flimkien. Bħala riżultat nistgħu ngħixu f’iktar armonija man-natura.

Matul is-sena d-dieħla għandna nisimgħu dwar in-nisġa ta’ strateġija għal Patt Ġdid Aħdar fl-Unjoni Ewropea. Ursula von der Leyen, għandha mira ambizzjuża: trid li jkollha pjan dwar dan il-Patt Ġdid Aħdar lest għad-diskussjoni fi żmien mitt jum minn meta l-Kummissjoni Ewropea l-Ġdida tibda tiffunzjona. Dan bla dubju jkollu effett fuq kull pajjiż membru tal-Unjoni. Nistennew għaldaqstant li matul is-sena jkollna l-proposti tal-Gvern Malti ukoll f’dan is-sens.

Din hi triq li l-Ħodor Ewropej ilhom imexxu l-quddiem għal bosta snin u mhix koinċidenza li din il-viżjoni tal-Kummissjoni Ewropea l-Ġdida qed tieħu sura hekk kif il-Grupp tal-Ħodor fil-Parlament Ewropew kiber sostanzjalment fid-daqs.

Il-Patt Ġdid Aħdar hu dwar ferm iktar mit-tibdil fil-klima. Huwa ukoll dwar il-mudell ekonomiku li hu l-kawża tad-degradazzjoni ambjentali madwarna.

Fil-kummenti tiegħu huwa u jagħlaq id-diskussjoni dwar il-Baġit, il-Prim Ministru, pereżempju, spjega li l-qalba għal karozzi tal-elettriku tfisser ferm iktar milli sempliċiment nimpurtaw il-karozzi u li niżviluppaw l-infrastruttura meħtieġa għalihom.

Tfisser ukoll t-tmiem tat-taxxi tar-reġistrazzjoni tal-karozzi kif ukoll it-taxxi li jinġabru mill-bejgħ tal-petrol u d-diżil li dwarhom l-istima għas-sena 2020 hi ta’ €157 miljun, skont l-estimi tal-Baġit li l-Ministru tal-Finanzi ppreżenta reċentement fil-Parlament. Ma’ din is-somma wieħed irid jikkunsidra ukoll it-taxxa li tinġabar mar-reġistrazzjoni tal-karozzi li għas-sena 2020 hi stmata li tlaħħaq €55 miljun kif ukoll il-liċenzji tat-triq li jitħallsu kull sena, huma stmati li jlaħħqu €85 miljun oħra fis-sena finanzjarja 2020. Dan ifisser li fis-sena 2020 €297 miljun mid-dħul tal-Gvern ser ikunu dipendenti fuq il-karozzi, prinċipalment fuq karozzi privati. Sa mill-2018 bħala inċentiv favur l-introduzzjoni ta’ karozzi bl-elettriku kienet introdotta eżenzjoni mit-taxxa tar-registrazzjoni. Dakinnhar ukoll kienet tħabbret esenzjoni ta’ ħames snin fuq il-liċenzja tat-triq għal dawn il-karozzi. L-impatt tal-elettrifikazzjoni, għaldaqstant imur lil hinn mill-klima. Hemm impatt ukoll fuq il-finanzi pubbliċi għax ikun meħtieġ identifikazzjoni ta’ sostitut għal dan in-nuqqas ta’ dħul.

Hu ċar li l-inkarigu li Frans Timmermans ingħata dwar il-Patt Ġdid Aħdar prinċipalment ser ikun iffukat dwar il-politika tal-klima u kif l-Unjoni Ewropea għandha tilħaq il-mira ta’ status carbon neutral sal-2050.

Imma hemm iktar minn hekk ukoll. Ursula von der Leyen fl-ittra tagħha tal-10 Settembru 2019 fejn tfisser l-oġġettivi li jridu jintlaħqu minn Timmermans tgħid li “għandna nħarsu b’mod iktar wiesa’, mill-enerġija li nipproduċu u nużaw, b’inkoraġġiment għal investiment mis-settur privat u appoġġ għat-teknoloġija nadifa, inkluż għat-trasport li nużaw, l-ikel li nikkunsmaw u l-ippakkeġġar li narmu.” Dan ser jinkudi ukoll responsabbiltà kemm għall-ekonomija ċirkulari kif ukoll għal dik assoċjat mal-qasam marittimu, magħrufa ukoll bħala l-ekonomija l-blu.

Ursula von der Leyen temfasizza ukoll il-mira dwar it-tnaqqis tal-emissjonijiet tal-karbonju li tinsisti illi għandhom jiżdiedu ta’ l-inqas sa’ tnaqqis ta’ 50% sas-sena 2030.

Tagħmel emfasi partikolari wkoll fuq l-impatti soċjali ta’ din il-bidla billi tiffoka fuq il-ħtieġa ta’ transizzjoni ġusta prinċipalment f’dawk ir-reġjuni li huma dipendenti fuq l-industrija, fuq il-faħam, inkella fuq l-industrija tal-enerġija. Ma’ dan huwa ppjanat kemm attenzjoni dwar il-ħarsien tal-bijodiversità kif ukoll il-mira li jitrazzan kull xorta ta’ tniġġis.

Punt interessanti fl-inkarigu ta’ von der Leyen lil Timmermans huwa emfasi li l-politika ta’ tassazzjoni hi meqjusa bħala għodda essenzjali li għandha tintuża biex jintlaħqu l-miri tal-politika dwar il-klima. Dan ifisser li ser ikun hemm pressjoni sostanzjali fuq il-Gvern Malti biex jikkura l-allerġija li għandu għat-tassazzjoni, b’mod partikolari t-tassazzjoni ambjentali, għodda effettiva u importanti ħafna fl-implimentazzjoni tal-politika ambjentali.

Bla dubju ser nistennew il-proposti ta’ Timmermans u d-dibattitu imqanqal li ser isegwi!

Ippubblikat fuq Illum : Il-Ħadd 27 ta’ Ottubru 2019

 

A Green New Deal

The Green New Deal is a comprehensive response to the crises we face. It aims to reconcile our lifestyles – the way we live, produce and consume – with the physical limits of our planet.

It is a transformational journey consisting of sweeping, interlinked reforms at all levels and all sectors, the end result being a more harmonious relationship with nature.

During the next year we should be hearing about the formulation of a strategy for an EU Green New Deal. Ursula von der Leyen, has an ambitious target: her aim is to have an EU blueprint for a Green New Deal ready for discussion within the first hundred days of the new EU Commission being in office. Without a shadow of doubt this will have an impact on all member states of the EU, so as a result we should expect that, during the year, the Maltese Government will also publish its own proposals on the matter.

The European Greens have been advocating such a roadmap for years, and it is certainly no coincidence that the new EU Commission’s vision comes so soon after the Green Group in the European Parliament increased substantially in size.

A Green New Deal is much more than dealing with climate change – it also signifies a focus on the economic model underpinning the accumulating environmental degradation.

In his concluding remarks in the budget debate, for example, the Prime Minister explained that the electrification of private transport signifies much more than importing electricity-driven cars, and the development of an infrastructure for charging points.

It also implies doing away with car registration taxes as well as forgoing taxation collected from the sale of fuel which, for the year 2020, is estimated at €157 million, according to the budgetary estimates which the Finance Minister recently tabled in Parliament. To this substantial sum one must add the projected vehicle registration tax, which is estimated at €55 million and the circulation licence taxes estimated at €85 million for the financial year 2020. This signifies that €297 million of government income projected for 2020 is dependent on cars, mostly private cars and indicates the potential financial impact of the electrification of private transport, which will undoubtedly be spread over a number of years.

In order to incentivise the take-up of electric cars, an exemption from registration taxes on electric cars has been in effect since 2018. Similarly, an exemption on the payment of circulation taxes for the first five years is currently applicable – hence the argument that the issue is much more than climate politics. Consequently, it is also about economics and finance as the government will need to find a substitute for these taxes

Clearly, Frans Timmermans’ brief indicates that his Green New Deal proposals will be focused towards climate change politics and the EU’s attainment of a carbon neutral status by 2050. It is, however substantially more than that. In fact, Ursula von der Leyen states in Timmermans’ mission letter dated 10 September 2019 that “ we must look at everything from how we use and produce energy, unlock private investment and support new clean technologies, all the way through to the transport we use, the food we eat and the packaging we throw away.” This will include responsibility for both the blue economy and the circular economy.

Subsequently, von der Leyen emphasises carbon emission reduction targets must be increased to at least 50 percent by 2030. She furthermore underlines the need for focusing on cushioning against social impacts through ensuring a just transition – in particular in the industrial, coal and energy intensive regions to which will be added a focus on protecting our biodiversity and a zero pollution ambition.

An interesting twist is von der Leyen’s instruction to Timmermans to ensure “that our tax policies enable us to deliver on our climate ambitions.” This signifying that there will be considerable pressure on the Maltese government to seek a cure for its allergy to taxation, particularly environmental taxation, which is an important and effective tool in the implementation of environmental policy.

We await Timmermans’ proposals and the interesting debate that will undoubtedly follow.

published on The Malta Independent on Sunday : 27 October 2019

Politika dwar il-klima fl-Unjoni Ewropea

 

Il-politika dwar il-klima hi materja ewlenija li qegħda taħt il-lenti fil-laqgħat li Ursula von der Leyen, innominata bħala President tal-Kummissjoni tal-Unjoni Ewropea, qed ikollha mal-gruppi politiċi diversi fil-Parlament Ewropew.

Kemm il-Grupp tas-Soċjalisti u Demokratiċi kif ukoll dak Liberali fil-Parlament Ewropew ippubblikaw lista ta’ talbiet li għamlu lil von der Leyen dwar dak li jriduha tikkommetti ruħha dwaru imma li s’issa evitat. Fuq quddiem nett f’dan kollu hemm impenn ikbar dwar li politika meħtieġa biex ikun indirizzati l-impatti tat-tibdil fil-klima.

Min-naħa l-oħra, l-Grupp tal-Ħodor fil-Parlament Ewropew ħareġ stqarrija li permezz tagħha ta’ l-ġenb lill-kandidatura ta’ von der Leyen u dan għax, fi kliem Ska Keller, ko-president tal-grupp: “ma smajna l-ebda proposta konkreta, la dwar is-saltna tad-dritt u l-anqas dwar il-klima. Ġejna eletti b’mandat ta’ bidla u m’aħniex naraw kif din il-bidla tista’ sseħħ b’din il-kandidata.”

Azzjoni dwar il-bidla fil-klima hi prijorità u din il-prijorità għandha tkun riflessa fl-ambizzjonijiet li l-kandidat għall-Presidenza tal-Kummissjoni tal-Unjoni Ewropea trid tmexxi ‘l-quddiem. Sfortunatament hu magħruf li Ursula von der Leyen qatt ma tat prijorità lill-azzjoni dwar il-bidla fil-klima tul iż-żmien kollu li ilha attiva fil-politika nazzjonali tal-Ġermanja!

Tul l-għaxar snin li ġejjin, l-emissjonijiet tal-gassijiet serra fuq livell globali jeħtieġ li jonqsu b’iktar min-nofs. Anke iktar mit-tnaqqis ta’ 55% kif talab il-Parlament Ewropew kif ukoll mill-40% tnaqqis li s’issa aċċettaw il-pajjiżi membri. Dan fl-istess ħin li l-emissjonijiet netti għandhom jilħqu żero sa mhux iktar tard mill- 2050. Il-miri tal-ftehim ta’ Pariġi illum jiuffurmaw parti integrali mill-liġijiet tal-Unjoni Ewropea imma għad hemm ħafna ħidma x’issir biex dawn il-miri jitwettqu fir-realtà.

Soluzzjonijiet jeżistu biex ikunu ikunu indirizzati u trasformati l-enerġija, t-trasport, l-agrikultura u l-proċessi industrijali. Imma jeħtieġ li nkunu kapaċi li naħdmu flimkien biex l-impenn li jitwettaq il-Ftehim ta’ Pariġi mhux biss ikun onorat, imma li nkunu kapaċi nħajru oħrajn jagħmlu bħalna.

Minkejja l-wegħdiet li saru mill-pajjiżi differenti dwar emissjonijiet bħala parti mill-ftehim ta’ Pariġi xorta waħda jidher li ż-żieda fit-temperatura, sa tmiem is-seklu kurrenti, ser tkun ta’ madwar tlett gradi Celsius (3°C) fuq it-temperatura pre-industrijali. Dan meta nafu li iktar min-nofs din iż-żieda jkollha effetti katastrofiċi.

Diġà bdejna nduqu l-konsegwenzi bis-sħana tilħaq livelli ġodda, estremi ta’ għargħar u nuqqas ta’ xita u nirien li qed jagħmlu ħsara mhux żgħira f’kull rokna tad-dinja. L-affarijiet sejrin għall-agħar. Imma għad baqa’ ċans, kemm-il darba niċċaqalqu bla iktar dewmien.

Il-Gvernijiet m’humiex jieħdu l-inizjattiva. Mhux qed jindirizzaw dak li qed jirriżulta mir-riċerka xjentifika. Sfortunatament, uħud mill-Gvernijiet (u l-partiti politiċi li jiffurmawhom) jaraw kull azzjoni meħtieġa biex tkun indirizzata l-bidla fil-klima bħala ta’ xkiel għall-industrija u għall-ekonomija.

Sa minn meta saru tibdiliet fit-trattati Ewropej fl-1987, l-Unjoni Ewropea bdiet tieħu deċiżjonijiet dwar l-oqsma ambjentali b’maġġoranza kkwalifikata. Dan wassal biex ġiet sviluppata leġislazzjoni ambjentali li tiffaċilita politika Ewropea li tirrispondi għal dak kollu meħtieġ mit-tibdil fil-klima. Tul dan iż-żmien kollu, l-Parlament Ewropew kien dejjem fuq quddiem jinsisti dwar miri ċari u ambizzjużi fil-ġlieda kontra l-bidla fil-klima. Hu meħtieġ li anke l-Kummissjoni Ewropea timxi fuq dawn il-passi.

Hu għalhekk li hu meħtieġ li l-President approvat għall-Kummissjoni Ewropea tikkunsidra l-azzjoni dwar il-bidla fil-klima bħala prijorità u li tkun lesta biex il-Kummissjoni immexxija minnha taġixxi b’dan il-mod.

Ippubblikat fuq Illum : il-Ħadd 14 ta’ Lulju 2019

Climate Change politics at the EU

The politics of climate change is a main topic of discussion at the meetings which Ursula von der Leyen, European Commission President-designate, is currently participating in with the various political groups in the EU Parliament.

The Progressive Alliance of Socialists and Democrats Group, as well as the Liberal Group, have issued written demands to von der Leyen detailing the various policy commitments which they expect but not yet see. The politics of climate change is at the forefront of the requests made.

The Greens, on the other hand, have issued a statement rejecting von der Leyen’s candidacy, as in the words of Ska Keller, co-president of the group: “We did not hear any concrete proposal, be it on the rule of law or on climate. We have been elected on a mandate for change and we don’t see how change will be possible with this candidate.”

Action on climate change is a priority and this priority must be reflected in the ambitions which the European Commission President-designate puts forward. Unfortunately, it is known that Ursula von der Leyen has never prioritised climate action during her long career in German National politics!

Over the next 10 years, global greenhouse gas (GHG) emissions need to be more than halved (beyond the 55% reduction as requested by the European Parliament and surely beyond the 40% committed to by the EU Member States), while net GHG emissions must reach zero by 2050 at the latest. Attaining the commitments of the Paris Agreement is now enshrined in EU climate and energy laws but the European Union must do much more to make it a reality.

Solutions exist for transforming energy, transport, agriculture and industrial production systems. We must act together to fulfil our commitments to the Paris Agreement and beyond, and encourage others to do so too.

Notwithstanding the national pledges made as part of the Paris Agreement, we are on course for warming of about 3°C above pre-industrial temperatures by 2100. It is known that any increase exceeding 1.5°C will be catastrophic.

We are already at the receiving end, with global temperatures warming-up at unprecedented rates, floods, droughts and fires which are impacting our communities all over the world. It is getting worse. Yet it is not too late, provided we act without further delay.

Governments are not showing leadership in tackling climate change. They are not addressing the gap between the expectations of the citizens and the analysis of the scientists on one hand, and their decisions on the other.

Unfortunately, some governments, and the political parties which form them, see climate change policies only as an obstacle for industry and the economy.

Since the Treaty change of 1987, the European Union has decided legislation in the field of the environment on the basis of a qualified majority voting. This has allowed for the development of a comprehensive set of new environmental legislation and facilitated a concerted EU policy response towards climate change.

The EU Parliament has, most of the time, been the most progressive EU institution, demanding more ambitious targets and measures in the fight against climate change. It is about time that the EU Commission follows suit.

We need a European Commission President who considers climate change action as a priority and acts accordingly.

published in The Malta Independent on Sunday : 14 July 2019