The economic measures announced by the government are part of a strategy to get Malta beyond the COVID-19 emergency. The mantra is to ensure continued confidence and to save jobs while creating the economic envirornment to create new ones.
The economic regeneration plan shall inject €900 million and is affordable because of the way the economy was managed before the crisis struck. Malta recorded some of the strongest growth figures in Europe, turned a deficit into a surplus and delivered virtually full employment. All these improvements were achieved without introducing or increasing taxes.
The actions taken on a national level to tackle the pandemic have been successful. We achieved the right balance between protecting health and avoiding a full lockdown. Malta suffered far less than other countries and credit has to be given to citizens, young and old, who followed the guidelines, working from home and keeping their distance from each other.
The government’s package of economic support, including the wage supplement of up to €800 per month, kept businesses going, preserved jobs and provided the route to recovery. The opposition insisted on a total lockdown but the measured approach of the government, protecting people’s health and jobs, proved to be the right one.
The strategy now is not only about kick-starting the economy but providing a springboard for success in the medium and long term. We are taking action in the most extensive way. Malta is adept at attracting investment but it is important that we have the capacity to accommodate those who want to set up business here.
The plans include the largest industrial infrastructure project in the country, amounting to an investment of €400 million over eight years, including an upgrading of the Kordin Business Incubation Centre and turning the former Marsa landfill into an industrial park for small enterprises.
Actions taken on a national level to tackle the pandemic have been successful
The assistance to hard-hit businesses, including a 50 per cent refund on utility bills, as well as assistance to all businesses, namely tax deferral, grants, credit guarantees and an extension of the COVID-19 wage supplement, is built on a belief that they have the ability to get back on their feet and repeat their previous successes.
Other measures to help families are part of a well-thought-out plan to increase consumer confidence. Providing every adult with €100 worth of vouchers to spend primarily in the hospitality and tourism sectors not only encourages consumer demand but directs it to priority areas.
The reduction in stamp duty, from five to 1.5 per cent, will mean a tax saving of thousands of euros, and this too is part of the strategy as it assists families and the wider economy, feeding through to increased consumer confidence. Now is also the time for us to continue to progress on updating our economic targets. The Digital Malta strategy, launched in recent years, certainly paid off during this crisis and we need to decide how we make the best use of technology in the future.
We have learnt many lessons in the recent past and have realised the various new opportunities that are available. Furthermore, the government will be delving further on new opportunities in various sectors, including the aviation sector while taking all the necessary decisions to achieve a green economy..
The stimulus package is home grown. Nonetheless, we will negotiate diligently to get the best deal from the EU Recovery Plan and the MFF (Multiannual Financial Framework). The funds from the EU budget will serve as further means to regenerate the economy and additional investment for the future.
We argue that the specific circumstances of individual member states need be taken into consideration when calculating the level of recovery aid being attributed. All these efforts will provide additional investment and will help us achieve the goals we have set in a myriad of areas, including digital transformation, tackling environment concerns and climate change and preventing social exclusion.
Stefan Zrinzo Azzopardi is Parliamentary Secretary for European Funds