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‘Fix The System,’ EP President Metsola Warns At The Institute for Financial Services Conference

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European Parliament President Roberta Metsola warned financial services practitioners that Malta’s tax rebate to foreign businesses in Malta can only serve as an incentive for a short time to come.

In her speech at the Institute for Financial Services Practitioners’ Annual Conference, Metsola told attendees that “tax is only one element of attractiveness” and that around the world, this is not even a main element of a successful financial services sector.

“We cannot reflect negative stereotypes of what people expect from a low-tax jurisdiction,” Metsola said. “We have to fix the system to give confidence to investors that not only will they have recourse to justice, but will be able to do so without having to wait decades,” she added.

The tax rebate has long been seen as the main attraction to foreign direct investment in Malta. However, it has resulted in intense pressure within the EU to scrap this system and agree to harmonise corporate taxes.

In her speech, Metsola also acknowledged the continued pressures faced by the Maltese economy as a result of the FATF greylisting, which forced businesses to take “a good hard long look” at how they conduct their affairs. 

“A big part of the greylisting is of course the fight against money-laundering. As the strain on budgets increases, so will the need to clamp down on hidden or undeclared wealth,” Metsola said.

Metsola also took the opportunity to advise against rampant construction and the sale of so-called golden passports, warning that “we are in danger of killing the goose that lays the golden egg for a quick injection of cash”.

It was economic, political and security short-sightedness to create an economic sphere of activity based on selling passports,” she said.

Towards the end of her speech, Metsola also expressed the need to reform the education system in such a way that it prepares students for a reality where continuous training is not just an asset, but a necessity.

“My fear is that if we do not instil the critical thinking that you need in this world, our country will become more of a follower than a leader,” Metsola said.

This article is part of a content series called Ewropej. This is a multi-newsroom initiative part-funded by the European Parliament to bring the work of the EP closer to the citizens of Malta and keep them informed about matters that affect their daily lives. This article reflects only the author’s view. The European Parliament is not responsible for any use that may be made of the information it contains.

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Amy is a university student with a keen interest in all things related to food, photography, press freedom, politics and justice. Send her any stories that might be of interest at [email protected]

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