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Public Enterprise Implications of Malta’s Entry into the European Union

Before its accession to the European Union in 2004, Malta had long enjoyed a paternal system of government with a large public sector and strong welfare-state characteristics. The sometimes bitter debates about the merits of joining the EU explored the pros and cons of privatisation at length. Adopting a market economy was one of the EU’s declared requirements, but it ran counter to the Maltese sense of ownership of their own state. After several hesitations and compromises, Malta did join the EU and the old patterns were severely fractured. Now the debate is about whether Malta might have done better to stay out.