It noted that operational and safety conditions for vessels carrying the Maltese maritime flag are less stringent than those generally applied to EU member states. It found fault with Maltese legislation regarding Product Liability, Misleading Advertising, Unfair Contract Terms and Distance Selling. It said Malta had no specific legislation on asylum and that it took only refugees of European descent , a gap which it declared must be rectified without delay. Malta's strict neutrality provisions, together with its particularly close relations with Italy were mentioned. On the basis of the commission's findings it would seem that Malta has an uphill path to travel before it can accommodate the EU requirements for membership.
Substantial work remains to be done in most fields examined in the report.
Further it was ominously concluded that as a result of Malta's decision to freeze its application for two years, it reduced its exposure to the acquis. The implication is clear. Those that leave the line cannot be expected to regain their slot without paying a penalty. Yet in spite of Malta's non-compliance the commission has recommended to the council that the screening of its legislation should begin as soon as possible, with the view to starting negotiations at the end of this year. The commission expects that when the European Council discusses the possibility of extending the accession negotiations, Malta will be able to join the candidate countries with which negotiations are already underway.