The regulation of ship registration and finance in Malta : a European perspective

Abstract

The local political scene is currently dominated by the frenzied debate as to whether Malta should become a member of the European Union or not, a decision that will eventually be taken democratically by way of a referendum on the matter. Most sectors of the economy have carried out impact assessments in order to foresee the effects of EU accession and these are very often strongly linked to the harmonization of Maltese law with the laws and mechanisms of the European Union. One of the sectors reserving particular debate and attention to itself is the Shipping sector, vital to the economic interests of the Maltese islands and one of the most evident success stories of Malta, particularly in respect of ship registration and finance. Following a brief introduction to the subject, Chapter One of this thesis introduces the intricacies of modem-day ship registration vis-a-vis fundamental principles of public international law. Chapter Two initially outlines the development of EU Shipping law and later concentrates on what could be regarded as the turning point in respect of the European Union's role in the shipping world. This occurred in the aftermath of the sinking of the Maltese-flagged 'Erika' in December 1999. The Erika break-up was given prominence in this thesis not only because it left an indelible stain on the Maltese flag in the eyes of the public at large but also due to the far-reaching Commission proposals that resulted, duly discussed in Chapter Three. The thesis then goes on to tackle the Maltese ship registration and finance scenario. Chapter Four is a discussion and analysis of the major amendments relevant to this thesis which took place by virtue of the recent amendments to the Merchant Shipping Act, Cap. 234 of the Laws of Malta. Chapter Five then analyses what, in the author's view, is to be expected from Malta's accession to the European Union vis-a-vis certain elements that have proved to be fundamental contributors to the success of the Maltese Registry in attracting foreign shipowners to the Maltese flag. Finally, the conclusion wraps up the discussions raised throughout the thesis.