Your Excellency,

Distinguished guests,

Ladies and gentlemen,

I am very happy to be here in this most beautiful and interesting city of Potgorica, capital city of Montenegro, a country which has gone through significant historic changes in recent years and it is an honour to be able to address you this afternoon at this first Montenegro/Malta Business Forum.  I wish to thank the Chamber of the Economy of Montenegro for organising this event and inviting me to speak here today.  

Thank you Mr President for your kind words.  Like you, I too share a sincere aspiration and desire to find ways to establish new partnerships and to expand trade and investment opportunities between the companies of our two countries.  I trust today's Forum will lay the foundation for improving our economic ties further.  

Malta and Montenegro share a common sea that historically has always been a stage for economic activity.  Strategically located in the centre of the Mediterranean Sea, between Sicily and North Africa, Malta's unique geographical position makes it an ideal hub for business transactions in the region complementing that of Montenegro at the crossroads between Europe and Asia.  Our common concerns as small southern Mediterranean countries make us the ideal partners to work together rather than act as competitors.  Moreover, Malta's membership of the European Union in 2004 has further enhanced Malta's Mediterranean vocation to collaborate with its Mediterranean partners.

I congratulate Montenegro on the recent coming into force of the Stabilisation and Association Agreement with the European Union.  This is a strategic step forward in the right direction and I want to take this opportunity to assure you of Malta's support to the process of EU enlargement and more specifically for the start of your accession negotiations with the European Union hopefully later on in the year.  Malta views favourably Montenegro's potential as a future EU Member State.  Malta also believes that it is in the interest of the Union as much as it is in the interest of the Western Balkan region to speed up the integration of this region into a dynamic Union which would help immensely to consolidate the security and stability of the region.

Our diplomatic relations established in July 2006 have been intensified further with the appointment of Malta's non-resident Ambassador to Montenegro just two months ago.  I am pleased to say that Ambassador Joseph Psaila Savona is also accompanying me on this State Visit and is here with me today.

In the years preceding EU accession, Malta went through a period of considerable economic restructuring and institutional and legal reform.  In more recent years, increased fiscal consolidation and economic adjustments paved the way for Malta's membership into the Eurozone.  Likewise for Montenegro, EU membership can successfully act as a catalyst and stimulus towards positive economic reforms and as an opportunity to upgrade and establish a most competitive environment.  I am pleased to note that a group of ten Senior Public Officers from Montenegro have attended a course in Malta in 2009 on Public Administration Reform and we look forward to continue cooperating with you on your road to EU Membership.

The Maltese economy has been substantially restructured in the last two decades.  We have shifted away from a labour intensive manufacturing base to high value added sectors that tap the best of our dynamic and flexible workforce.  Malta considers its human resources to be its major strength and has placed education and training high on its priority sectors together with financial services, information and communication technology, tourism, health, the creative industries and other upmarket ancillary services.  Malta's long-term vision is based on the potential of these sectors which can fully exploit our investment attractiveness and competitive advantages.

Trade relations between Malta and Montenegro are presently covered by the terms and provisions of the preferential Stabilization and Cooperation Agreement and it is clear that this Agreement can further improve and reinforce our bilateral commercial interests. The potential of this relationship can only grow in the years to come and intensify with Montenegro's EU membership.  Throughout this morning, I have noted the remarkable economic development registered in recent years and the increasing optimism and willingness to invest in Montenegro.  There are several areas where our two countries can, through their competitive and comparative advantages, work together and benefit from each others' experiences.  

Suffice to mention a few indicative areas where we can foster cooperation between our two countries.  These include tourism, the operation of cruise liners, hotel management, education, banking and other financial services, maritime activities and port development, electronics and information technology, software industries, telecommunications, infrastructural and other construction works, e-business, and issues relating to customs modernisation and product standardisation.  

In this regard, the visit to Montenegro by the Maltese institutional delegation is a step in the right direction.  The members of the institutional delegation are here to obtain a first hand experience of the business environment and I sincerely hope they will explore both trade and investment opportunities in Montenegro.  I also augur that today's forum will have a follow up in the form of incoming or outgoing business delegations so that we can start thinking of a long term profitable business relationship.

To conclude, I would like to thank again our hosts for their efforts in coordinating this Business Forum and I wish you all many fruitful discussions.

DOI  -  21.07.2010