This MoU contained the overall conditions and modalities agreed between Switzerland and the EU for a financial contribution by Switzerland as a compensatory measure to the latter’s participation in the economic and social dimensions of the EU internal market.

In a official ceremony in Berne, attended by ministers from the new member states of the European Union, Foreign Minister Michael Frendo signed a bilateral framework agreement with the Swiss Federal Council through which Malta will receive the sum of 2,994,000 Swiss Francs, equivalent to e1.8 million to be used for projects in the health sector. Dr Frendo said that “these funds, coming from Switzerland, which has a special relationship with the European Union, are an expression of solidarity and partnership and of a commitment to greater cohesion in Europe”,

The Swiss government obtained approval to distribute these funds in a referendum held in accordance with that country’s tradition of direct democracy. Malta proposed the area of human and social development covering the health sector, namely the modernisation of hospitals, reform of health insurance systems and preventive measures, to be aided through the Swiss contribution.

Other EU countries who benefited from the Swiss contribution together with Malta are Poland, Hungary, the Czech Republic, Lithuania, Slovakia, Latvia, Estonia, Slovenia, and Cyprus.

Speaking at the signing ceremony held in Berne, Dr Frendo recalled Malta’s longstanding diplomatic cooperation with Switzerland and made particular reference to Maltese Swiss collaboration with regard to the Mediterranean Academy of Diplomatic Studies (MEDAC), the Diplo Foundation and also the International Maritime Law Institute. He recalled the Swiss Federation President’s remarks, Swiss Foreign Minister Micheline Calmy-Rey, that these funds should also be a catalyst for stronger bilateral relations between Switzerland and each of the new member states.