The next budget is the Labour government’s 12th since 2013. However, this time around, the anticipation transcends standard economic and financial considerations. For many, there is a growing sense of urgency as key questions, which have lingered for years, remain unanswered.
Is Malta’s economy growing in the right direction? Why has the government failed to seek a broader consensus with the social partners to shift away from labour-intensive sectors towards high-value-added growth and employment? Should the government initiate an overhaul of the education system to support a sustainable economic model essential for the nation’s transformation?
Malta’s economy stands at a crossroads, requiring decisive government action to address issues that affect the daily lives of its citizens. Despite the government’s frequent claims of job creation and economic growth, the reality for many citizens is that their standard of living and quality of life have declined. The promise of prosperity remains elusive as citizens grapple with rising costs, stagnating wages and growing inequality.
Compounding these issues are numerous corruption scandals involving the government, which have drained hundreds of millions of euros from the economy. These scandals are not just about political accountability; they represent a serious threat to Malta’s economic health and the well-being of the people.
The Nationalist Party believes that the lack of transparency and governance failures have severely compromised Malta’s ability to attract foreign investment and have eroded public trust in the institutions that should be safeguarding the nation’s interests.
Social partners have repeatedly called for a shift away from the current economic model, and, belatedly, the finance minister seems to have accepted this reality. Yet, progress towards genuine change has been slow. The government’s investment in critical sectors like infrastructure, digitalisation and healthcare remains insufficient and productivity levels must be increased for Malta to stay competitive.
The Nationalist Party has consistently argued for the transformation of Malta’s key economic sectors to produce greater value-added benefits. We believe the government must foster new sectors, such as renewable energy and technology, to reposition Malta globally and attract both local and foreign investment in Malta and Gozo.
Innovation and diversification are no longer optional but necessary to secure the country’s future.
One of the most pressing issues is healthcare. The growth of Malta’s population has exposed major weaknesses in the healthcare system, and investment is urgently needed. The government must allocate substantial resources to improve healthcare facilities and ensure that every citizen has access to quality medical care. Healthcare is a cornerstone of any prosperous society and the state must address these deficiencies with urgency.
The 2025 budget represents a critical turning point for Malta
Equally critical is Malta’s transition to a sustainable energy model. The Nationalist Party supports the call for a radical shift towards renewable energy and energy-efficiency initiatives that benefit both the environment and the economy. The Labour government has made only half-hearted efforts in this regard while other nations are forging ahead. We cannot afford to lag in the global race to decarbonise as this is not just an environmental issue but a fundamental economic one.
Malta’s infrastructure also requires significant attention. The island’s roads, public transport and utilities are struggling to keep up with the demands of growth, leading to congestion, inefficiency and frustration for citizens. The upcoming budget must present a comprehensive infrastructure plan that enhances connectivity and raises the standard of living for all Maltese residents. This includes investing in new roads, modernising public transport systems and upgrading utilities to ensure they can cope with future demands.
However, investment in infrastructure must go together with policies that support the private sector. The government should incentivise private investment in emerging sectors such as green industries, technology and high-end tourism while also supporting small- and medium-sized enterprises (SMEs), which remain the backbone of the economy. The Nationalist Party has long argued that SMEs are not being given the attention they deserve and we believe the upcoming budget presents an opportunity to correct this oversight.
At its core, this budget must offer a clear vision for the future. The Nationalist Party envisions Malta as a leader in technology adoption, environmental protection, improved healthcare and educational opportunities.
These are the pillars that will not only secure Malta’s future but elevate its standing in the international community. Reducing bureaucracy, addressing transport challenges and strengthening national security should also be top priorities.
Most importantly, we must rebuild confidence in our governance structures. The Labour government remains embroiled in scandals involving ID cards, health benefits and road penalties, to name just a few. As a society, we need answers on how the government plans to restore confidence in its authorities. The upcoming budget must directly address these concerns and lay out concrete plans for restoring public trust. Without this, no economic plan, however ambitious, will succeed.
The 2025 budget represents a critical turning point for Malta. It must steer the country toward sustainable economic growth, investing in high-value sectors and, most importantly, restoring public confidence in the country’s future. This includes preparing Malta’s younger generation for the jobs of the future, particularly in emerging industries such as technology and renewable energy.
The Nationalist Party stands ready to lead Malta towards a more prosperous, transparent and equitable future. The choices made in this budget will determine whether we seize that opportunity or remain mired in stagnation and scandal.
We firmly believe that Malta deserves better and we are committed to providing the leadership required to realise this vision.
Ivan Bartolo is the Shadow Minister for Employment and the Creation of New Economic Sectors. Jerome Caruana Cilia is the Shadow Minister for the Economy and Enterprise.