Malta’s Reaction to Brexit is a Cautious OneMEDIA ROOM
Malta could effectively gain from Brexit in the long-run. According to James Satariano, the Institute of Directors president in Malta, Malta should be pushing towards being an alternative location for online gaming companies, insurance providers and international investment banks that are currently located in the UK.
Discussions were already initiated with the member states by EasyJet regarding their aviation regulators, and moving its headquarters from the UK, calling the move of its legal HQ as almost inevitable. EasyJet has also agreed to a five-year contract with SR Technics in Malta. The company will be going for another similar contract with Lufthansa Technik based in Malta. Thus, most of its aircraft maintenance will be done in Malta.
Moreover, according to James Satariano, it is Malta’s time to go ahead and capitalise, position itself, and get the most out of having a solid economy, and supportive tax legislation. Malta has classified along with Germany as the only two countries in southern Europe that withstood the recession. Furthermore, Malta also seemed to opt for a cautious approach, and seems willing to wait for the UK to make its position clear during negotiations with the EU before effectively promoting itself as a possible alternative base.
In addition, after the UK’s decision to leave the EU, Malta’s advantage pivots on citizenship. Passporting can grant British financial institutions like fund managers, banks and insurers to continue selling their services to all EU member states without having to attain consent from the EU nations.This would allow prospective banks to further expand their customer base, serving as a global financial hub.
The iGaming industry will also be taking a significant downfall, and could consequently be extremely beneficial for the booming iGaming market segment in Malta. James Satariano added that few are the people concerned about the gambling industry. Such businesses have a very valid reason to be uneasy due to the current situation as they cannot lose EU markets. Relocating to Malta would provide such companies and industries corporate services to get the best of both worlds.