“Ukraine’s accession could cost €136 billion to the EU budget, new report estimates…”

Ukraine’s potential accession into the European Union could have an impact of between €110 billion and €136 billion on the bloc’s seven-year budget, according to a new report by the Bruegel think tank.

This would represent 0.10% and 0.13% of the EU’s gross domestic product (GDP).

The projection uses the existing rules and design of the 2021-2027 budget to extract a projection of how much money the war-torn nation would be entitled to after obtaining the coveted membership. Ukraine was first declared a candidate in June 2022 and was given the go-ahead for accession negotiations in December 2023.

The findings exclude the enormous costs of reconstruction, estimated to be at least €450 billion over the next decade, and assume Ukraine would eventually regain all the territories in the East that Russian troops have occupied.

Bruegel forecasts Kyiv would be entitled to:

• €85 billion from the Common Agricultural Policy, the bloc’s massive envelope of subsidies for farmers. As the programme is rolled out according to hectares (farmed land), Ukraine, with its mighty agricultural sector, would become the biggest recipient.

• €32 billion from the Cohesion Policy, which finances development projects. The allocation of cohesion funds is capped at 2.3% of a member state’s GDP. Without this cap, Ukraine would be entitled to about €190 billion, six times more.

• €7 billion from other programmes.

In total, Ukraine would receive roughly €136 billion (at current prices) over a seven-year budgetary period. This is much lower than the €186 billion that the Financial Times reported in October based on a leaked study drafted by the EU Council.

However, if the country fails to win back the occupied East and suffers a permanent reduction of its territory, population and economic resources, Bruegel estimates the allocation would fall to €110 billion.

Malta:

Malita’s Investments plc – Rights issue

Malita Investments plc recently announced a strategic move to expand its portfolio and reinforce its financial foundation through a rights issue, approved by the Malta Financial Services Authority (MFSA).

This initiative marks a significant step in the company’s journey since its listing on the Malta Stock Exchange in 2012, following a fully subscribed initial public offering.

The government, as the majority shareholder with an 80% stake, showcases its ongoing support and confidence in Malita’s strategic direction and its pivotal role in national real estate projects.

Malita’s investment strategy is centred on the acquisition, development and management of immovable property, focusing on national, strategic and commercial real estate opportunities.

The company’s revenue streams are primarily derived from long-term ground rent and lease agreements with high-quality tenants, including significant government projects like the Malta International Airport, Valletta Cruise Port, and notable landmarks in Valletta like the open-air theatre and the parliament building.

The rights issue

The rights issue, set for shareholders on record as of February 20, offers up to 65,825,806 new ordinary shares at a price of €0.50 each. This offering is structured to allow existing shareholders to subscribe to four new shares for every nine shares they currently hold. Moreover, the issue opens doors for potential third-party investors and existing shareholders to apply for additional shares beyond their initial entitlement.

Importantly, the government has committed to subscribing its full entitlement, with a provision to renounce a portion to accommodate subscriptions from institutional investors, existing shareholders seeking additional shares, and other applicants. This ensures that while the government remains a significant stakeholder of no less than 70 per cent, there is room for increased participation from the public and institutional investors, thereby potentially allowing for increased liquidity in the aftermarket.

Malta Company Announcements:

IHI plc

IHI plc announces that it has leased the Corinthia Hotel in Prague to Czech Inns from Prague for the latter to operate this hotel as from 1 April 2024.

The hotel will henceforth be marketed under a new name by Czech Inns, following a de-branding period.

IHI has owned the 550-room high rise hotel since 1998.

The decision to appoint a third-party lessee to operate the hotel is in line with IHI’s direction to focus its Corinthia brand solely on ultra-luxury operations whilst seeking other brands and solutions for its upscale and mid-market owned hotels. The rebranding of the Prague hotel comes at a time of rapid expansion for the Corinthia Brand, with luxury hotels under construction and scheduled for opening in the next couple of years in New York, Rome, Brussels, Bucharest, Doha, Riyadh, and the Maldives, adding to its current operations in cities and resorts such as London, Lisbon, Budapest, and the brand’s home base in Malta.

Czech Inns is the largest operator in Prague with over 2600 rooms under management. As landlord and property owner, IHI looks forward to a strong and successful relationship with Czech Inns over the term of the lease.

Malta Properites Company plc

The Board of Directors of the Company is scheduled to meet on Thursday 21 March 2024:

1. To consider and approve the Company’s Audited Financial Statements for the financial year ended 31 December 2023;

1. To consider the declaration of a final dividend to be recommended to the Company’s Annual General meeting

Shoreline Mall plc

The Company is pleased to announce that following months of planning and unwavering commitment, Shoreline Mall has, today, opened its doors to the public, with the formal opening scheduled for the 8th March 2024.

All retail spaces have been successfully leased out following collaborations with numerous brands in Malta, showcasing retail, fashion, catering, entertainment, and leisure establishments.

The Company remains committed to elevate the Shoreline Mall as a primary shopping destination in Malta whilst providing a multifaceted shopping experience to its customers.

The launch and completion of the Shoreline Mall forms part of the Company’s Project which also includes the development of a number of foreshore luxury residential units and car spaces.

GO plc

The Board of Directors of the Company is scheduled to meet on Wednesday 20 March 2024:

1. to consider and approve the Company’s Audited Financial Statements for the financial year ended 31 December 2023, and;

1. to consider the declaration of a final dividend to be recommended at the Company’s Annual General Meeting

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