Negotiations on Gozo and the EU

Abstract

In 2000, Gozo's regional GDP stood at just 71.7% of Malta's national average, which in turn, is just over half of the EU average. This means that Gozo lags far behind when compared to EU countries. The EU Treaty acknowledges that island regions, such as Gozo, may suffer certain disadvantages which need to be addressed. Malta claimed that Gozo suffers from permanent disadvantages as a result of its status as a small island within an archipelago of islands (double insularity), its small population size coupled with high population density, its limited resources and its environmental fragility. Gozo also has an over-dependence on the primary sector (agriculture) and on the secondary sector (industry) of employment. All these factors have an impact on the economic and social development of Gozo. In order to address Gozo's disadvantages, Malta sought to negotiate a special arrangement for Gozo that takes into account both its funding requirements as well as its other needs.