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Anna Mallia brings to our attention the painful realities of disadvantages Malta will face as an EU member and tells us that Austin Gatt will no longer be able to do as he pleases
Minister Austin Gatt tends to forget at times that Malta is already in the European Union. Maltese who have been abroad recently were not allowed to claim duty-free because they were told that they are now part of the Union. Minister Gatt conveniently or otherwise sometimes fails to remember that he is no longer ‘the’ Minister, but just a Minister. The real Minister is now Mario Monti, the EU Commissioner for Competition and whatever Minister Gatt promises and does, needs to have the blessing of Commissioner Monti. Although he may not know it, Commissioner Monti is watching over him and making sure that he makes no promises without the EU blessings. Commissioner Monti is no fool and he will not take a subsidy for a loan if the EU competition rules dictate so.
The ‘ministry’ of Mario Monti
As you are aware, the ‘ministry’ for EU Competition, better known as the Directorate-General (DG) is the strongest ministry in Brussels. Mario Monti’s main task is to ensure that member states do not disrupt the rules of competition. In the treaty which Malta signed with the EU and with its present fifteen member states, we find, for example, that if in 2008 the Government feels that it needs to subsidise the Drydocks, it will have to ask the EU Commission for permission. This is because if the Commission feels that such a subsidy will jeopardize the situation of the Drydocks in the other member states, it will not give its permission. And if this permission is not granted, the present management might as well pack their suitcases and go home.
Gatt cannot surpass Monti
Austin Gatt thinks that in the case of Air Malta he can surpass Mario Monti. We read that he plans to ‘lend’ Air Malta ‘30 million Maltese liri’ in order to make it viable.
While Gatt has not mentioned the word loan, an injection of capital, that would have the same impacts is planned.
Needless to say, he did not ask for the taxpayers’ permission to pass over the Lm30 million – anyway this was never the case, so why should it be now. Neither did he feel the need to commission a report as to why Air Malta is in the red and the persons behind this situation – the defaulter pays principle does not come into play.
No ‘loan’ without Monti’s authorisation
But Commissioner Monti does. Minister Gatt cannot commit himself and his government that 30 million liri will be given to Air Malta unless and until Commissioner Monti gives him the green light. It is true that our Minister is being very careful not to call this a subsidy so that he will not have to beg for permission from Brussels. But it is also true that if Minister Gatt knows where his mouth is, so does Commissioner Monti. No donation can be considered as such by the DG Competition if it has the essence of a subsidy.
Authorisation in writing
So before continuing the negotiations with the four unions representing the workers at Air Malta, Minister Gatt must make sure that he has the authorisation from Brussels for such a ‘loan.’ Comments like ‘EU rules do not apply because we are not yet in the EU’ make sweet music only to those persons who think that they are watching the Full Monti film. Minister Gatt knows, or rather he should know, that he has to consult Mario Monti and ask for confirmation that he can provide this loan to Air Malta. Whoever is familiar with what goes round within the EU knows that there were cases when the EU Commission did not allow certain governments to provide any assistance to a state-controlled company precisely because the Commission interpreted that financial assistance as a subsidy and not as a loan.
No discussions prior to this authorisation
Even the unions must be careful – they must make sure that they have it black on white that Brussels has no objection for such a loan. They must see this piece of paper before they continue with the negotiations. The word of the Minister is not enough now. It is the word of Minister or Commissioner Monti that counts and that must be in writing. The package deal has to come after the workers have the assurance that Brussels concurs with Minister Gatt’s plans for the revival of Air Malta. Only when this is done, can the unions be in a position to continue with the negotiations.
Because what is the point of negotiating a package deal for the workers, when come May 1 – two weeks from now – we will have Mario Monti knocking on our door and telling us to stop this loan to Air Malta because it is in the form of a subsidy? What do we do then? Do we tell the workers sorry or we tell them nothing and blame the situation at Air Malta on them for failing to come with concrete proposals? Workers are to be treated with respect; after all they cannot be blamed for the current situation at Air Malta. But EU competition rules do not respect the dignity of the workers - for them, money is the only language they speak and understand.
Look out for Monti
So, dear unions and dear workers, look out for Monti in these negotiations. Make sure that Monti is around and present because without him your job can have no future. It is useless coming to an agreement with Minister Gatt by relinquishing to the present benefits and conditions of work, when eventually you may find out your sacrifices were futile. So once again, I urge you to ask for that piece of paper from Brussels before you carry on with the negotiations.
And believe it or not, the UHM is staying aloof notwithstanding that its membership consists also of Air Malta employees.
Losing money and conditions of work is already a big blow to the workers, but losing their jobs because of Mario Monti, will be a bigger blow!
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