Industry leaders on Monday urged the European Union to tailor its Single Market rules more effectively to small island states, warning that a “one-size-fits-all” approach continues to place Maltese firms at a structural disadvantage.
Speaking at a conference on the EU Single Market organised by the Malta Business Bureau (MBB), MBB Chief Executive Mario Xuereb the Single Market “shouldn’t be a bureaucratic hurdle; it must be a ‘power tool’ for growth.”
The call was echoed by Malta Chamber President William Spiteri Bailey, who said the EU “needs to start thinking small” when drafting legislation that affects island economies.
Malta Hotels and Restaurants Association President Tony Zahra added that while the Single Market had significantly helped Malta grow tourism, excessive regulatory burdens risked stalling further growth.
There is broad agreement that the EU Single Market remains a net positive for Malta, opening up the bloc’s 450 million consumers and €17.1 trillion in GDP to local businesses.
But speakers noted that island states on the EU’s fringes, like Malta, face many major challenges in participating fully in the EU Single Market. Those challenges range from high transport costs, regulatory fragmentation and disproportionate compliance requirements relative to larger member states.
Industry representatives from the manufacturing, pharmaceutical and legal sectors who attended the event pointed to complex rules, territorial supply constraints and rising input prices as key challenges. They welcomed the EU Commission’s recognition that the Single Market is still impacted by barriers and said Malta needed further support, including incentives for maritime decarbonisation, greater digitalisation and full use of EU and national funding to reduce island-specific disadvantages.
A second panel discussion focused on cross-border services. Panellists noted that most EU economic growth stems from the services sector, despite it facing the largest internal-market obstacles. Speakers warned that eliminating these barriers is essential if the EU is to maintain global economic and political relevance. Participants also stressed the need for Malta to engage more proactively in Brussels, including at early stages of legislative drafting.
The event was attended by senior representatives from the European Commission, European Parliament, government, Opposition and private sector.
Economy Minister Silvio Schembri, EU Funds Minister Stefan Zrinzo Azzopardi, Shadow Economy Minister Jerome Caruana Cilia, European Commission Representation head Maria Elena Despott and MEP Peter Agius also addressed the conference.
