Why European Parliament Elections Matter For Ship Supply

Mr. Karl Aquilina from the Maltese Ship Supply Association reflects.

The 2024 European elections significantly impact the ship supply industry. The new Parliament, under President Roberta Metsola from Malta, will make decisions on customs, VAT, sustainability, and port infrastructure that will shape the regulatory environment, affecting daily operations and future growth.

As we reflect on the outcomes of the 2024 European elections, it’s essential to understand the profound implications these elections have had on the ship supply industry. In my role with the Maltese Ship Supply Association, I have seen first-hand how decisions made in Brussels reverberate across the Mediterranean and beyond. Here’s why every maritime professional should pay close attention to the outcomes of these elections.

Reflecting on the Outcomes of the 2024 Elections

The backdrop to this year’s European Parliament election has been particularly challenging. This was the first European Parliament election following Brexit, the COVID pandemic, the eruption of war in Ukraine and the Eastern Mediterranean, and the disruption of Red Sea trading routes.

We were interested in the June 2024 EP elections, as the composition of the new Parliament will strongly impact the EU’s priorities for the next years, both in terms of legislation and budget. As a co-legislator with the Council of the European Union, the Parliament will also influence the EU’s response to crises at its borders, its international agreements, and the level of the EU’s commitment to reducing climate change.

As citizens directly elect the European Parliament, its 720 Members of Parliament are entrusted to represent the interests of over 450 million people from 27 member states. This election also coincided with several other elections in some European Union member states.

It is interesting to note that the European People's Party won the most seats in the European Parliament, while the pro-EU centrist, liberal, and environmentalist parties suffered losses and anti-EU right-wing populist parties made gains. This may result in a shift of focus, with increased attention given to economic recovery, job creation, sustainable growth and the EU’s single market, whilst possibly slowing down the introduction of new environmental legislation. 

The re-election of Ursula von der Leyen as President of the European Commission is welcome, as this continuity in leadership will provide a stable environment for implementing key policies affecting the maritime industry. On a personal note, I am particularly proud that European Parliament President Roberta Metsola has been re-elected for a second term. This is a testament to her leadership qualities, and—as she is a Maltese national—her appointment brings Malta and its shipping sector into the spotlight at the highest levels of European decision-making.

Impact on Ship Supply and Maritime Industry

The ship supply sector, crucial for ensuring that vessels can operate efficiently and safely, relies heavily on a stable regulatory environment. European legislation on customs, VAT, excise, veterinary laws, and sustainability directly influences our day-to-day operations.

Customs and VAT

The European Parliament’s customs regulations and VAT decisions have streamlined processes across member states, reducing administrative burdens and ensuring smoother operations for ship suppliers. This harmonisation facilitates the movement of goods, ensuring that ships receive timely and efficient services - but more work remains to be done over the next four years, and leadership of the European Parliament is crucial.

Excise and Veterinary Laws

Excise duties and veterinary regulations are crucial for ship suppliers, especially those handling food and beverages. European policies ensure that standards are consistent across member states, simplifying compliance and ensuring the quality and safety of supplies provided to ships. Again, OCEAN has excellent relations with EU lawmakers in this space, and we need EU Parliamentarians to play their role, too.

Sustainability Initiatives

The EU's ambitious sustainability initiatives, such as the Carbon Border Adjustment Mechanism (CBAM) and the European Deforestation Regulation (EUDR), are steering the EU industry towards more sustainable practices. These regulations promote environmental responsibility and encourage innovation in sustainable ship supply solutions. The EU's stringent emissions and waste management regulations have pushed our industry towards greener practices, setting a global standard for maritime operations. While this is all applaudable, EU Parliamentarians can help us find the right balance in environmental & economic sustainability. For instance, the Malta Maritime Forum has recently expressed concern that the methodology being used by the EU's new Emissions Trading System (EU ETS) may discourage shipping lines from calling at EU ports because of the increased costs involved.

Infrastructure and Port Development

Policies on port accessibility and infrastructure development are vital for our business. The European Union’s investment in modernising port facilities and enhancing connectivity across member states has opened new avenues for trade and commerce, boosting the maritime supply chain’s efficiency. These investments ensure that ships can dock, load, and unload with minimal delays, keeping global supply chains robust and resilient. We need MEPs to work with us to ensure speedy access to vessels. 

Conclusion for Ship Supply Businesses

In conclusion, the outcomes of the 2024 European elections profoundly impact the ship supply industry. From customs and VAT regulations to sustainability initiatives and infrastructure development, European Parliament decisions shape the environment in which we operate. Understanding and engaging with these policies is essential for ensuring our industry's continued success and sustainability. We look forward to working with the elected members under European Parliament President Roberta Metsola’s outstanding leadership – and we wish them all the very best. 

Karl Aquilina
Maltese Ship Supply Association