MINISTRY FOR MARITIME AFFAIRS AND INSULAR POLICY - VICE MINISTER = 7 Feb 2017 What future for islands in the European Union Public Hearing - Valletta, Malta NEKTARIOS SANTORINIOS I don t like to sound dramatic, but today in the context of the financial crisis, the greatest challenge for Europe s islands is to achieve initially to secure the viability of social and economic life. Simultaneously to make the residents of the island to feel equal European citizens. Today, more than ever, the insularity of the islands is one additional factor for the degradation of the resident s life quality. In this context, which are the basic disadvantages of insularity? Isolation and regionalism increase the cost of living of the inhabitants. This is due to two major factors. The high cost of transport, (which) in some cases it can be five times more for some islands. Oligopoly in local markets does not allow competition to grow. At the same time, the cost of living is increased by the absence of basic public services in the island. The fact that, especially in the small islands, basic services like specialized medical care, high schools, economic and
social security insurance, oblige residents to move to bigger islands or even further, to mainland (cities). Those movements put a disproportional burden to private budget as well as state budget. For example, an islander, in order to accomplish access to dental care, one has to travel at least for two days. This cost that comes from travel and accommodation added to the total cost. As a result, from all above, a small but respectful trend of population reduce is noticed in islands since 2012. This trend becomes more clear when it comes to the active island s population. The proof of that, is that insular regions have the highest level of economic inactive population. This ratio sometimes exceeds 25%. Someone has to bear in mind that when it comes to islands the minimum living structures, and the structures to overcome insularity are in any case a multiple of the minimum necessary number in mainland. It is obvious that every island needs at least one health unit, at least one doctor, at least one school, at least one harbor, at least one public servant at least one teacher, at least one policeman etc. For those public servants, in this special living conditions, there has to developed special motives, for the stuffing of this units. Our government has already set special motives but still are not enough to solve the problem. Today is the turning point to reverse isolation and use island s comparative advantage. It s a critical point if we want to transform insularity s disadvantage into opportunity. We only need to understand that islands ask for an alternative development model as well as a smart management of natural and environment human capital.
Let s move on, from hard implementation of one size fits all rules and drive ourselves from the common need of equal access for all citizens of Europe on development and equality opportunities. What is the alternative development model for islands? Islands are easier to become smart development clusters for edge technologies. Their size and limited space may become unique technological advancement laboratories. This will add to their energy competence, water sufficiency and integrated environmental management. At the same time, based on their natural beauty and cultural heritage, economy on quality tourism can be developed. Special motives should be introduced for this framework in order to develop agricultural and processing industry in support of sustainable economy. Main concern is monoculture of mass tourism. This creates extremely vulnerable economies. Islands development is totally depended on the coastal shipping. Costal shipping is similar to the cities avenues but for islands. It must be considered as a public good as long as this remain basic factor for economic survive. This cannot be considered strictly as business. This is a service that has to be provided with the same cost set the continental distance, ensuring quality means of transport and satisfactory frequency. How can EU contribute? It is clear now that European islands are in need of EU support. Although European Treaties (55/Amsterdam) (174-175 Lisbon) recognize the need for European support in insular policies, in fact, nothing substantial is done. The request nowadays, is to set all European Institutions (Parliament, Council, and Commission) in front of this need. This
target should be accomplished by adopting insularity clause and support of relevant policies in all legal texts. In every policy implementation, flexibility should be recognized, or even exceptionality in order to insure islanders equal treatment. GDP alone, should not be taken into account when it comes to rules related to structural and cohesion funds allocation since this creates false projections. When reviewing structural and cohesion funds, for current Regional Policy framework, pillars of financing insular policies should be introduced. Concerning next Regional Policy framework, there is a necessity for a new fund dedicated to islands cohesion and development. This would act as our common will for insular policy implementation Why EU needs a Common Insular Policy? EU funding principal is common benefits and obligations for all EU citizens. Equity is acquis communautaire Guided by these principals and overcoming its contradictions, Europe is heading to integration. Every time Europe is recognizing group of citizens or trade sector in danger or marginalization, protection policies like CAP are implemented. As for today, implementing common rules on insular territories regardless of special and structural impediments as lack of access and market inefficiencies, tend to prevent and finally exclude island citizens from acquis communautaire. Implementing common rules as a dogma on isolated territories created second class citizens. As a conclusion, Europe has to make a choice. Continue implementing common rules by creating unequal citizens or introduce flexibility on
implementing rules and achieve equity.