Malta Business Bureau (MBB) outgoing President Alison Mizzi as well as new President Raphael Aloisio have both stressed the need for the European Union (EU) to shift its focus towards its declining competitiveness and to create a healthy environment for businesses.

Their reflections came in the form of a joint statement released in the MBB’s Annual Report for 2023-2024, published on Monday.

The MBB is the EU business advisory organisation of The Malta Chamber of Commerce, Enterprise and Industry and the Malta Hotels and Restaurants Association (MHRA). Last month, the MBB announced that Mr Aloisio would be replacing Ms Mizzi as President.

In the report, the pair highlighted the MBB’s growth over the years, with Ms Mizzi noting that the entity has strengthened its positions with EU policymakers on a number of issues, including reducing bureaucracy, providing appropriate funding, and tackling skills shortages. Mr Aloisio said that Malta has the potential to leverage its EU membership further, particularly when it comes to the green transition.

Mr Aloisio also stated that heading into the next EU term, the focus for the EU should be on competitiveness.

The issue of competitiveness has been a prominent topic among business leaders over recent months, with the EU continuing to lose ground on the US and China, which are leading the way in terms of innovation and industry.

Back in 2008, the EU and the US had roughly the same Gross Domestic Product (2008) at around $14 trillion (€12.9 trillion). However, in the space of 15 years, the US has nearly doubled it to $27 trillion (€24.8 trillion), while the EU’s GDP has barely increased, going up to just over $16 trillion (€14.7 trillion).

Business leaders have stressed that in order to tackle this, deep reforms have to be made, particularly in terms of the overregulation that is taking place in Europe.

This was backed up by Mr Aloisio, who said that the “legislative overdrive” in the last European Commission term has imposed significant burdens on EU businesses.

“The EU should ensure that legislation is proportionate and adheres to the principle of subsidiarity,” he argued.

Additionally, he also stressed the need for the EU to lead the way in terms of global sustainable development initiatives, collaborating with major global players to achieve climate goals and promote fair competition.

Reflecting on the past EU term, Ms Mizzi reaffirmed Mr Aloisio’s sentiments on the need for a greater focus on competitiveness and the creation of a conducive environment for businesses.

Ms Mizzi pointed towards the concept of Open Strategic Autonomy, which aims to enhance Europe’s self-sufficiency and independence in key areas, while remaining open to global trade and cooperation.

She said that this concept will bolster the resilience of the European economy while also enhancing collaboration with reliable third countries on common issues such as clean technology and raw material supply.

Ms Mizzi also emphasised that Malta’s unique challenges as an island state need to be considered when new EU proposals for legislations are issued. She suggested the introduction of an insularity check in the impact assessment process.