Malta’s approach to tackling traffic congestion questioned in new EU report

An EU report has questioned Malta’s carrot-not-stick approach to tackling traffic congestion, arguing that incentive-based measures have been “largely ineffective”.

The European Semester Report, which traces Malta’s progress across a range of sectors, was presented to MCESD on Wednesday.

The report points to a raft of measures unveiled earlier this year, singling out proposals to offer cash incentives to people willing to give up their cars or driving licences, or those willing to switch to small motorcycles.

These measures “still favour rewards over sanctions,” the report says. Meanwhile, promises to create new parking facilities “will further encourage car use, leading to increased congestion”.

The report notes that “measures to tackle congestion by disincentivising the use of private cars…are not foreseen”.

“Policies in place to address traffic congestion have been predominately incentive-based and largely ineffective,” the report says.

Its authors also say that measures to improve public road transport and alternative modes of mobility “seem to be systematically lacking,” with a 2024 ban on rental e-scooters further reducing options for alternative mobility.

Government figures say the proposals unveiled earlier in the year are short-term, voluntary initiatives intended to encourage a cultural shift towards alternative modes of transport, with longer-term measures (including a mass transit system) set to follow.

Meanwhile, recently announced plans to extend Malta’s sea transport network have broadly met with public approval.

The report explores several other areas of Malta’s social and economic development, heaping praise on the country’s economic performance but flagging several broader concerns.

Economic growth is expected to continue, with Malta’s low unemployment figures likely to remain stable. Meanwhile, the country’s deficit is likely to dip at a faster rate than expected, with the country’s debt-to-GDP ratio well within the EU’s recommended margins.

However, Malta remains highly dependent on fossil fuels, with one of the lowest rates of renewable energy uptake across the EU. Malta’s blanket energy subsidies “hinder electrification” and should be phased out in favour of further investment in green investments and strengthening grid capacity, the report says.

Meanwhile, poverty is rising among specific groups, including children, non-EU nationals, and older adults. Policy measures to address poverty among vulnerable groups have yet to yield results, the report suggests.

And Malta still faces long-standing problems of court delays and skills shortages, with “systemic shortcomings” in Malta’s educational system resulting in “persistently insufficient basic skills,” as well as low enrolment of tertiary students in STEM subjects.

Positive report but several 'areas for improvement': MCESD

In a statement, MCESD said the report highlights “a strong and dynamic Maltese economy but points to areas requiring improvement”.

The Council outlined the call for Malta to invest more in research and development, as well as to cut transport emissions and tackle traffic congestion.

Meanwhile, Finance Minister Clyde Caruana welcomed the report, describing it as “a moment of satisfaction but also of motivation”.

“We must continue working together to invest in crucial areas such as research, innovation, and training, and create a sustainable and inclusive economy for all,” he said.