The government will continue to intervene aggressively but sustainably to protect people’s livelihoods and expand the economy, Prime Minister Robert Abela pledged on Thursday. 

Speaking in a One Radio interview, he said the Maltese could enjoy serenity and tranquillity this summer thanks to decisions taken by the government over the past two years, not only to save lives during the pandemic but also to safeguard the productive capacity to ensure the economy can quickly recover and return to growth.

It was a process that was continuing, evidenced particularly by the fact the price of energy and fuel had not shifted for 111 weeks.

It was thanks to such decisions that Malta was now at the top of the EU’s forecasts of economic growth.  

Despite all the challenges, Malta now had the lowest unemployment rate ever with just 920 looking for a job – nine times fewer than when the PN left government, Abela observed.

A major challenge for the private sector was to find the workers needed. It was for this reason that he had presided over successive meetings in the past week to reform Identity Malta and the processes to grant visas and work permits, among other issues.

Cost of living

Thanks to government measures, he said, inflation in Malta was the lowest in Europe, no mean achievement considering this was a peripheral island heavily dependent on logistics and imports.

The situation would have been catastrophic for ordinary people and the economy if energy and fuel prices were allowed to rise and fluctuate as they did abroad. The average family bill for families would have risen by €700-€800 for families had there been no subsidies.

While in Malta, €20 would get you 15 litres of petrol, in Greece and Spain one could only get eight litres at that price, and in Italy even less, he said.

Inflation in Malta was currently running at 6.5% because of factors the government had no control over, such as the rising prices of food imports, he added.  

Abela hailed Malta’s removal from the greylist of the Financial Action Task Force, saying this was the country that had spent the least possible time on the greylist. The recommendations of Moneyval and the FATF had been taken on board, he said, so Malta could project itself as a reputable financial and investment destination.