Robert Abela hinted at government plans to address Malta’s low fertility rate through targeted incentives when he spoke at a Labour Party activity on Sunday.

He was replying to a point mentioned by the audience at a discussion organised by the Labour Party at the Inspire Foundation in Marsascala.

In 2022, the fertility rate, which reflects the number of live births per woman, significantly varied in the EU, ranging from 1.79 in France to 1.08 in Malta according to Eurostat, the statistical office of the EU.

Abela acknowledged the country’s demographic challenges and ageing population and stressed the importance of increasing the birth rate to maintain a sustainable labour force. 

He highlighted the need to reduce reliance on foreign workers who, he said, place additional pressure on Malta’s infrastructure.

The prime minister tied the issue to the broader goals of Malta Vision 2050, a strategic plan that aims to guide the country through the next 25 years, launched last week.

He said this long-term vision encompassed key sectors such as the economy, social policy, the environment, renewable energy, and fiscal policy. 

Abela underscored that Malta Vision 2050 is a 'living' document with intermediate targets that must be met by 2035, offering a roadmap for sustainable development across various sectors. 

The document is expected to be updated periodically, reflecting the evolving needs of the nation.

The prime minister also highlighted the resilience of Malta’s economy, noting that it continues to grow at a strong rate despite economic challenges faced by other European countries. 

Abela credited this growth to the government’s fiscal and energy policies and its commitment to avoiding new taxes. 

He pointed to Malta’s creation of new digital economic sectors and indicated that the upcoming budget would further reduce income tax, marking the largest reduction ever seen in the country.

On public welfare, Abela emphasized the government’s commitment to addressing poverty and social inequality. 

He spoke about the importance of ensuring that the country’s economic prosperity reaches those at risk of, or already living in, poverty. 

‘This is where our social conscience must come to the fore,’ he said, calling for more efforts to support vulnerable individuals who may not yet have benefited from the government’s economic success.

Abela also touched on Malta's ongoing transportation challenges, advocating for policies that incentivise rather than punish. 

Earlier, during the event, academic Angela Abela proposed measures to address Malta's traffic congestion, alluding to a system of alternating number plates, with odd/even numbers circulating on different days.

‘We should stop being afraid of being tough with people.  It is not about being popular.  And the people will understand,’ she said.

George Vella, an expert in the financial sector, said the time has come for more investment in public transport solutions, as despite efforts to improve the situation, traffic and frustration levels continue to rise.

But the prime minister reaffirmed the government's focus on using the carrot rather than the stick, promoting public transport, including free bus services, and highlighted the significant uptake of this initiative by both Maltese citizens and Gozitans, not just foreigners.

Addressing the labour event, President Emeritus Marie Louise Coleiro Preca urged the government to honour its commitment to conduct social impact assessments for national projects. 

It was a promise made in the Labour Party's 2013 electoral manifesto to which Coleiro Preca said she had contributed.  

Coleiro Preca also highlighted concerns that the Maltese economy is ‘overheating,’ warning of the potential consequences if no action is taken.

She emphasised that while the economy is booming, it has become detached from the real needs of the people. 

This, she argued, would ensure a balance between economic development and the well-being of the population.‘What we are seeing is an economy that is thriving, but it's the people serving the economy, rather than the economy serving the people. This is the crux of the matter,’ she stated.

Speakers at Sunday morning's labour event called for a change in direction: 'we want an economy for the people'. Photo: Partit Laburista

"It’s pointless having pockets full of money if you lack satisfaction and happiness," she remarked.

Coleiro Preca concluded by thanking the Labour Party for ‘tolerating’ her directness and frankness.