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ADDRESS BY PRESIDENT McALEESE TO THE MALTA CHAMBER OF COMMERCE & ENTERPRISE, VALLETTA, MALTA

ADDRESS BY PRESIDENT McALEESE TO THE MALTA CHAMBER OF COMMERCE & ENTERPRISE, VALLETTA, MALTA, FRIDAY 6TH OCTOBER 2006

President of the Chamber Galea, Distinguished Guests, Ladies and Gentlemen

Nibda billi nirringrazzjakom tal-istedina li ghamiltuli. Hu ta unur ghalija li ghandi l-opportunita’ li niltaqa mar-rapprezentanti tal-kommunita’ ekonomika Maltija.

I would like to thank you for the kind invitation to speak here today. It is a pleasure to be in Malta and to have an opportunity to meet with representatives of Maltese economic life.

The business community has an important role to play in the life of modern nations like Ireland and Malta.  Our countries are, of course, very much more than purely economic entities, but the vitality of our economies provides an essential underpinning for all that we seek to achieve as members of the 21st century community of nations. 

Since my arrival in Malta, I have been struck by the similarities between our two countries.  We are both island nations situated on the geographical perimeters of Europe. We share common elements in our heritage, most importantly a strong sense of identity that has been crafted by our particular historical experience.  In both our cases, being European does not detract from, or act as a burden to, our distinctive nationality.  Our sense of being European adds to and indeed reinforces our own identities.   Europe gives us a showcase to demonstrate who and what we are.

I believe that Richard More O’Ferrall, an Irishman by birth who was appointed as the first civil governor of Malta in 1847, was a major influence in encouraging the founding of this Chamber. It is a pleasure to come here today to this beautiful, historic building and share with you some thoughts on Europe’s new horizons at a challenging moment in our continent’s history.    

Ireland’s European experience has generated considerable interest, especially among those countries that joined on the memorable Day of Welcomes, which we had the privilege of hosting in Dublin in May 2004.  It was a momentous day when Europeans finally came together to put a smile of unity on the face of our continent.  In Ireland’s case, European membership has played a key role in the transformation of Irish society.  We have moved from a position of relative underdevelopment in 1973 to the notable prosperity we enjoy today.  This was not achieved overnight and we experienced many ups and downs along the way.  

In recent times, we have seen our per-capita income catch up with, and then exceed, the European average.  Total employment has almost doubled since 1990.   Unemployment has been greatly reduced.  Our present situation stands in marked contrast with the high levels of unemployment and attendant emigration that Ireland endured as recently as the 1980s.  As a consequence of these economic advances, our population has climbed by almost 15% in the space of a decade.  There are now more people in Ireland than at any time since the mid-19th century.  

Like Malta, Ireland has historically been a country of high emigration. Our worldwide community of Irish descent is, like yours, dispersed across the globe.  Millions of people of Irish background now live in Britain, the United States and Australia, amongst many other places.  The positive developments of the past two decades mean that today’s young Irish people have life chances which were undreamt of a generation ago. They have the option of staying at home and making their lives in Ireland, in their own neighbourhoods, amongst their families and availing of opportunities only dreamed of by previous generations.

Many who emigrated in the 1980s have come home, bringing with them valuable skills acquired abroad and who are at the cutting edge of our move to a more knowledge-driven economy attuned to the needs of today’s intensely competitive world.  

In recent years, we have begun to attract migrants from many lands and many cultures. As a result, a nation with a long history of emigration now plays host to significant numbers of people from other European countries with which, in the past, we have had only limited contact. These new friends and neighbours have helped us to deepen our understanding of Europe's proud history and its immense, admirable diversity.  They also contribute significantly to the life of modern Ireland and to the health of our economy.

Those who look at Ireland from the outside are naturally curious as to how all of this came about.  Of course, there are many strands to the Irish economic story, but most of these stem from particular Irish circumstances not easily replicated elsewhere.  I will focus on one of the key factors for Ireland, which also applies to Malta - the European dimension to our Irish story.

Ireland’s more than three decades of involvement in the European Union has given us access to large and increasingly integrated markets.  It has made us an attractive location for foreign direct investment.  This has enabled us to develop a modern industrial base with a specialisation in high technology sectors. Funding from Brussels has in the past played an important role in upgrading our infrastructure and boosting our competitiveness.  Membership of the euro has given us a stake in a major world currency.  Most important of all perhaps is the fact that European involvement has provided us with a productive, rules-based external environment in which a small country like Ireland can operate successfully, making our own contribution to the evolution of this larger entity.  

As we approach the 50th Anniversary of the signing of Treaty of Rome next year, it is easy to be complacent about the European Union and to take for granted the huge benefits which have accrued. From whatever angle we look at it, the European Union is a tremendous success story. It has helped banish the scourge of conflict from many countries and ushered in an unprecedented period of peace and prosperity. 

The past few decades have seen the fall of dictatorships in Spain, Portugal and Greece, the largely peaceful disintegration of the Soviet Union and the creation of a European Union that will soon have 27 Member States. 

Despite these undoubted achievements, we cannot ignore the apprehensions and uncertainties affecting today’s Europe.  These do not stem from any particular failure of the European venture, but rather from its very success.   There are those who grumble that European integration has gone too far, or that it has drifted in wrong directions.  There are others who want Europe to go further so that it can more robustly meet the challenges of the future.  There is inevitable disagreement as to what those challenges are and which should have priority.

There are a number of issues that today’s Europe needs to address.  The first of these is the need to plot an agreed course for the future of Europe.  Specifically, what kind of future do we envisage for ourselves as Europeans?  What areas of European policy need to be further developed? How far can the boundaries of our Union eventually stretch?  Given our respective geographic locations, this is a matter of some considerable relevance to both our countries. 

There is now significant debate and uncertainty surrounding the Union’s future expansion.  We recognise, however, that the promise of eventual membership has been a powerful force for stability throughout Europe.  This has acted as a motor for economic and political reform in other European countries and especially in the Balkans.  As successful European nations, Ireland and Malta have much to gain from the further spread of peace, prosperity and stability on our continent.

Ireland has found that being a small island nation on the western edge of Europe has been no barrier to our advancement within an expanding Union.   The European Single Market has provided great opportunities and our export-oriented industries have taken full advantage of these.  The further development of the Single Market will be crucial to Europe’s continued economic wellbeing. There is no future in economic nationalism.  In the years ahead, Europe needs to persist with its economic integration and step up its performance in research and innovation. 

Ireland’s access to the Single Market has conferred major benefit on us.  For example, it has enhanced our attractiveness to overseas investors who have found Ireland to be an ideal place in which to locate advanced facilities in the fields of information technology and advanced healthcare products in particular.  It is a measure of Ireland’s European success that we will soon be a net contributor to the EU Budget.  We do so willingly and in a spirit of solidarity with those who seek to climb the path that Ireland has trodden in recent years. 

Earlier this year, the Commission presented its analysis of the impact of the most recent enlargement.  The Commission has shown how accession has helped multiply trade and investment between European countries, creating a win-win situation for all involved.  But our world is changing fast, and Europe is challenged to adapt and change in ways that will sustain our future competitiveness in a demanding global marketplace.  Building innovation and deepening knowledge is the surest way we have of securing Europe’s continued well-being.   This will give us the means with which to build better societies which can protect the weak, nurture the vulnerable and create equality of opportunity for all.

As developed countries, we will depend on increasingly sophisticated knowledge-based activities to facilitate business competitiveness and to sustain high-value and high-income jobs.   In Ireland, we are investing heavily in research and development in an effort to ensure that we maintain a competitive edge and consolidate the very considerable gains we have made in the past two decades. 

It is vital that Europe continues to offer an environment conducive to new business models. The low-fares airline, Ryanair, has been an innovator in its field. Its services have increased Ireland’s tourist numbers and revenue, demonstrating competition and its impetus to broadly-based development. I am pleased to learn that Ryanair’s new links which will benefit the dynamic Maltese tourist industry and power the formation of other new links between our two countries.

The establishment of an Ireland-Malta Chamber of Commerce last year, and the personnel exchanges which have taken place between our business communities are encouraging signs that our entrepreneurs are taking every opportunity to both learn and profit from each other.    

Ireland is a neutral country with a long tradition of independent-mindedness in international relations.  There were those in Ireland who fretted that these qualities might be diluted or undermined in a European context.  These worries have proved to be unfounded. 

European involvement has enabled us to play a bigger role than we could ever have done in isolation.  On six separate occasions, Ireland has occupied the EU Presidency and this has thrust us into a leadership role.  Earlier this year, we decided to join the Nordic countries as part of a group that will be ready to contribute to peacekeeping and humanitarian operations consistent with our traditional UN role where Ireland has a proud track record. 

In European discussions on foreign policy issues, Ireland and Malta have an opportunity to give voice to our distinctive approaches to world affairs and to help shape wider European responses in key policy areas.  Although we cannot expect to wield dominant influence, we can both aspire to project our own values and to punch above our weight in international affairs.  

Ireland has a deep commitment to human rights and to an international order based on the rule of law and the peaceful settlement of disputes. I believe that membership of the European Union, with its population of over 460 million, gives us an ideal framework within which to express and promote these cherished values.

There is no denying that Europe faces testing times.  We are confronted by the threat of terrorism, by looming energy supply problems and by the prospect of climate change.  The rise of China and India has altered the global economic and strategic landscape.  While the nations of Europe cannot be expected to be of one mind on all key issues, there is much more that unites us than divides us.

We have a great chance to develop the Union’s role in the world and in particular to impact for good with ouR neighbours especially those countries that aspire to join our Union.  Ireland believes in sharing the benefits of European integration although we fully recognise the difficulties posed by a further expansion of EU membership.  We welcomed the report of the European Commission last week on the accession of Bulgaria and Romania and look forward to having them as full partners in the EU from 1 January next. 

At a time when dialogue between cultures assumes ever more pressing importance, Malta is geographically well placed to advance our common interests with various interlocutors here at the crossroads between Africa, Asia and Europe. Already you are grappling with problems of illegal immigration and you have been seeking support from the Commission and the Member States in dealing with an issue of concern throughout Europe.  We clearly need a common European response aimed at tackling the root cause of these unsettling movements of people, many of whom are desperate and vulnerable and prey to exploitation by unscrupulous elements who facilitate their illegal entry into Europe.         

Energy needs, and energy security will be a major issue for us looking ahead and will impact on our external relations.  This too is an area where collective European action makes perfect sense.

While we can rightly celebrate Europe’s achievements over the last 50 years, one glance ahead tells us we have plenty of work yet to do. But we do it together, enthused and inspired by the shared vision and values that lie at the heart of the Union. To fulfil that vision and spread those values we will need to update systems and treaties that were designed for much smaller entities. That means getting over disappointing Constitutional Treaty impasse and soon.  Malta has of course already completed the ratification process and I hope that the political framework for Europe’s continued advancement will soon be in place.  

To sum up, the European Union has brought many benefits, and many opportunities to Ireland and to our European partners.  It is not a finished project. In fact it is a very young and growing sapling - given into our care and stewardship in this crucial period of its growth.  The accession of Malta and nine others in 2004 has created a new Union, filled with fresh perspectives founded on the national experience of its diverse membership.  This new Union is still unfolding as we get to know each other better after generations of separation.  Each of us has a privileged place around the European table. It was hard won and is beyond price when we think of the sacrifices its creation entailed.   We owe it to ourselves and to our children to maintain with a passion, the momentum that has brought the Union thus far and will take it to its fullest destiny. I know that Malta and Ireland will want to be at the heart of that noble endeavour.

Grazzi. Thank you.