Despite the Government’s attempts to present the Stabbiltà scheme as a solution, it is clear that the decrease in inflation has been driven by external factors, namely the broader reduction in inflation rates across Europe, rather than any real domestic policy success, the Nationalist Party said Tuesday.
The recent Cost of Living Adjustment (COLA), predicted to be between €5 to €6 for 2025, represents a stark drop compared to last year, a statement signed by Ivan Castillo, spokesman for the Maritime Sector, Social Dialogue, and the Fight Against the Cost of Living, said.
While the Government claims that this decrease reflects their successful stabilization efforts, the reality is that inflation decreased across the continent, not because of local government policies, but due to macro-economic improvements within the eurozone. The slight relief in inflation is a consequence of European market conditions, market competition and not the result of any specific intervention through the Stabbiltà scheme, the PN said.
In fact, both the Malta Chamber and the Chamber of SMEs have expressed concerns over the Government’s approach. The Malta Chamber criticised Stabbiltà as an overly simplistic response to the complex issue of inflation, failing to address structural economic weaknesses. The Chamber of SMEs has questioned the sustainability of such interventions, noting that temporary schemes like Stabbiltà provide no long-term solution to the challenges faced by local businesses and households.
Rather than addressing the root causes of inflation, Stabbiltà was a desperate, last-ditch effort from a Government lacking both ideas and the financial means to implement substantial reforms. The Government’s inability to effectively manage the taxpayer’s contribution is evident as it fails to finance the much-needed proposals of the Partit Nazzjonalista, including the non-taxation of COLA, a proposal which was backed by all social partners.
Instead of deploying resources in a strategic and transparent manner, the Government has squandered hundreds of millions of euro in taxpayer money on corrupt deals and wasteful spending. This reckless financial mismanagement has left the Government with limited options to genuinely tackle the cost-of-living crisis, the PN said. As a result, they have resorted to short-term band-aid solutions like Stabbiltà, which do little more than paper over the cracks of a deeply flawed economic strategy. Rather than continue to help families get through difficult times.
The Opposition remains committed to implementing effective measures to alleviate the burden of rising living costs. We propose real, sustainable solutions such as tax relief on COLA increases, without burdening others with additional unnecessary schemes. The PN’s approach would ensure that citizens feel the benefits of economic growth directly in their pockets, without relying on temporary and ineffective government interventions.
It is time for a government that not only understands the intricacies of inflation and the cost of living but also has the vision and financial discipline to address these issues in a way that benefits all Maltese citizens, the PN said.