Prime Minister Robert Abela announced Friday that Malta’s fiscal deficit is set to fall below the 3% threshold well before the deadline agreed with the European Commission, insisting that the country’s economic performance remains robust despite opposition claims of excessive government spending.
Speaking at a political rally marking six years since he took office, Abela said the anticipated reduction in the deficit demonstrates the resilience of Malta’s economy. He said this comes at a time when, according to government figures, Malta recorded its largest budget surplus in the third quarter of last year, the strongest performance in six years.
The Prime Minister rejected criticism from the Opposition that public finances are under strain, arguing instead that the Nationalist Party is attempting to “spread pessimism” while failing to address its own financial position. He said government policy has prioritised stability while continuing to invest in people and infrastructure.
Abela pointed to several economic indicators which, he said, underline this stability, including public debt falling below 47% of GDP and Malta registering the lowest unemployment rate in the European Union for the first time. He also highlighted last year’s €9.3 billion Budget, the largest in the country’s history, which he said included the most significant tax reductions for workers and parents.
During his address, Abela also outlined a number of regeneration and heritage projects which he said will increasingly be directed towards public and family use. Among these, he announced plans for Fort San Salvatore in the south of Malta, which had previously been used as a concrete plant and is currently abandoned. He said the fort should be reclaimed from private ownership, restored, and reopened to the public.
He also referred to White Rocks, Manoel Island, Fort Campbell and Fort Tigné as major sites that will be returned for public use, stating that the country’s economic strength allows government to take what he described as bold decisions in favour of quality of life and open spaces.
The Prime Minister reiterated the government’s commitment to sports infrastructure, stating that around €120 million has been invested so far. He listed projects including the Cottonera Sports Complex, facilities in Gozo, the car racing track, the horse racing course, and a new sports investment inaugurated in Marsa earlier this week.
Looking ahead, Abela said a detailed regeneration plan for the Grand Harbour will be launched in the coming weeks. The plan will include the Menqa area and surrounding zones, which he said are expected to be transformed into what he described as one of Malta’s most attractive areas. Implementation, he added, will begin shortly after the plan is published.
On social policy, Abela said the government remains focused on supporting families in their various forms. He referred to reforms in IVF legislation, stating that these changes are expected to result in the birth of 1,000 babies. He also spoke about forthcoming labour measures aimed at improving work-life balance, including increased flexibility and expanded worker rights.
The Prime Minister also announced that following wage increases for public sector employees, government will now incentivise private employers to raise wages, with the state covering up to 80% of the cost of pay increases.
Referring to the current geopolitical situation, Abela said Malta requires steady and experienced leadership during what he described as sensitive and uncertain times. He said the country’s leadership must be capable of navigating international challenges that directly affect Malta.
Abela concluded by reiterating the government’s long-term Vision Malta 2050, which aims for the average Maltese and Gozitan family to earn an income one-third higher than the European average, while ensuring economic growth translates into sustainable careers and an improved quality of life.
