Budget 2020 is arguably the most powerful budget in years – for a myriad of reasons. But it is also structured around a concept which holds a power that we are yet to truly grasp: sustainability, in every aspect of our economy. 

As we have grown accustomed to in the past seven years, this budget adds no new taxes and adds further aid for those most in need – while rewarding hard work and investment.

Differently from past years however, this budget brings about a further dimension which will lead to a serious culture change, as government shifts its focus on making the future more sustainable.

The focus on green transition should not come as a surprise to our entrepreneurs, economists, and citizens. But most importantly it should not be a cause for concern. 

Sustainability is not an inhibitor to growth: in today’s changing landscape and climate, it is an enabler. The only way forward. 

Sustainability will not only enable us to strengthen Malta’s competitiveness but will increase it and will guarantee it for generations to come.

Moreover, government incentives and aid schemes will work to mitigate the pain of change.

It is only through sustainable measures and practices that as a country we can create prosperity and sustain growth, which is why the budget for 2020 has some of the strongest pro-environment measures which will strengthen our fight against climate change, revolutionalise our practices for the better, improve business, and continue to better the quality of life for everyone. 

A progressive government is pushing for a radical shift

It is rarely a matter of contention that climate change has an effect on the economy and on business – particularly in sectors such as tourism, energy, insurance and agriculture. 

It comes as no surprise, therefore, that a forward-thinking government would adopt an uncompromising approach towards climate change mitigation in its budget for 2020.

Perhaps most notably – the prohibition on the importation of single-use plastic products along with the beverage container recycling scheme, complemented by an aid scheme for merchants who create green corners in their establishments.  We are also looking at a national strategy for carbon neutrality by the year 2050, which means a total overhaul of the world as we know it today.

Malta Enterprise itself, traditionally government’s business arm, is taking a role towards cleaner solutions by giving incentives to the construction industry to scrap old machinery for more environment-friendly machinery that will decrease pollution, with assistance that can go up to €200,000 as part of our climate action strategy. 

The pay-off is significant.

Pro-environment is pro-business, pro-growth, and pro-family. This is an idea which receives little applause but unjustifiably so – and this polarisation is dangerous.

It is dangerous because it puts us at a competitive disadvantage when compared to economies which are well on their way to sustainable solutions. 

The reality is that innovative sustainable activities inevitably expand the market, create new business opportunities and new employment, but most importantly ensure that their practices are viable in the long-term. 

Understanding this allows us to continue to build on to the phenomenon that is this government’s success, one budget after another. 

This is because we are not after growth for growth’s sake, but a long-term plan that propels emerging markets and generates prosperity for the long-term – all the while maintaining our reputation as trailblazers in various sectors. 

Needless to say, the main purpose of these efforts is to build a better Malta for current and future generations. Success for government would be meaningless if not to provide more opportunities, help those in need, improve the island’s infrastructure and future-proof our strong economy.

Each and every measure listed in the budget is part of this plan: new rent laws, new medicines, new roads, new housing projects, and over a hundred others. 

Many would say this budget is ambitious. I would say that it should come as no surprise that a progressive government is pushing for a radical cultural shift – without fear of facing the challenge of change. 

Kurt Farrugia is the CEO of Malta Enterprise.