In a significant development for Malta’s road transport operators, the European Court of Justice has annulled a rule that mandated trucks to return to their home country every eight weeks, a requirement imposed under the EU Mobility Package.

This decision marks a notable victory for peripheral EU nations like Malta, whose businesses argued that the rule placed unnecessary financial burdens on them.

The annulment was welcomed by stakeholders across Malta.

Kevin Mizzi

In comments to MaltaCEOs.mt, Kevin Mizzi, Head of Policy at The Malta Chamber stated: “The Malta Chamberof Commerce, Enterprise, and Industry welcomes the European Court of Justice’s decision to annul the eight-week vehicle return obligation for trucks. This ruling acknowledges the unique challenges faced by peripheral and island nations and marks a significant victory for Malta’s road transport operators. We see this as a crucial step towards fairer and more sustainable EU policymaking that aligns with the principles of the European Green Deal.”

The annulled rule, which required trucks to return to their home country every eight weeks, was originally designed to prevent “letterbox companies” from exploiting more favourable tax or regulatory conditions in other member states.

However, critics, including Malta, argued that it would lead to unnecessary and costly trips, increasing the environmental burden rather than reducing it, as trucks would need to make additional journeys solely to comply with the regulation.

However, Malta argued that the geographical challenges faced by island nations were not sufficiently considered. This was particularly true for operators who already faced high transportation costs when shipping trucks back and forth across the Mediterranean.

Anthony Schembri from Agritrans spoke to MaltaCEOs.mt and shed light on the practical difficulties faced by Maltese operators: “This was discrimination against us companies. Transporting a truck by ship is very expensive, and we don’t have any subsidies for it, but the EU did give us subsidies for the diesel. The ship business is a big monopoly. They sometimes do damage to your cargo and you never get paid for it—you have to open a court case.”

Rules on cabotage and driver rest periods remain in place

While the eight-week return rule was dropped, other controversial elements of the EU Mobility Package remain intact.

The cabotage rule, which limits the number of internal transport trips foreign trucks can make within another member state, was upheld. This has raised concerns about reduced flexibility and increased costs, especially for smaller operators. Despite these complaints, the European Court decided that the rule would remain in force, further limiting Maltese companies’ ability to compete with their larger European counterparts.

Additionally, the rest period regulations—which prevent drivers from spending their mandatory rest times in the vehicle—were also retained. The Maltese haulage industry has long argued that these restrictions impose further financial strain, as it forces companies to spend more on accommodation for drivers.

These remaining provisions continue to be a point of contention, particularly as the Maltese transport industry tries to maintain a competitive edge within the EU market.

A step towards fairer EU policies?

Despite the two remaining rules, the annulment of the eight-week return obligation is seen as a win for Malta’s ongoing efforts to push for EU policies that are more tailored to the needs of island and peripheral nations. As Kevin Mizzi highlighted, “The Malta Chamber will continue advocating for nuanced legislative processes that consider the specific needs of all Member States, especially those with unique geographical conditions.”

This ruling sets a precedent that might lead to more flexible, region-specific regulations that reflect the realities of member states with unique logistical challenges.

Malta’s transport sector will likely remain vigilant as it works with the EU to ensure future legislation considers the island’s unique geographical and economic constraints, while also aligning with the broader goals of the European Green Deal.

The discussion now shifts to how EU transport policies can evolve to support both sustainability and competitiveness for all member states, regardless of their size or location.

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