Watch: ‘People can now afford luxuries thanks to Labour’

In his first interview with the independent media after winning a historic fourth term in government, Prime Minister ROBERT ABELA speaks to Mark Laurence Zammit about the political landscape, construction, incumbency and money in people’s pockets.

Robert Abela said people are buying more cars, boats and going on more holidays thanks to a Labour government that made luxuries accessible to many. He admitted, however, the new indulgences have come with a price that people must accept.

Speaking to Times of Malta in his first interview with the independent media since he was re-elected prime minister in a historic win last month, Abela said there is a price to newfound wealth and people cannot expect to have it all. “If a young person dreams of buying a new car, should I stop them from doing it? The reality is that people have money in their pockets. You can see this from the number of new boats that have been purchased. It’s massive,” he said.

“The greatness of the Labour government is that many things that were previously considered luxuries have now become affordable to many people. We went from a situation in 2013 where people were begging for jobs that pay €1,000 monthly to a situation where today they can buy a new car, a modest boat and maybe even go on holiday abroad twice a year. That’s how we elevated people’s quality of life.”

He pointed out, however, that people are paying a price in other ways.

“There are trade-offs in life. If you want a new car and a boat, you must accept they bring new realities with them. But that doesn’t mean the government should penalise car ownership,” he said.

“We’re trying to minimise those trade-offs, but we must accept that in life, you can’t have the cake and eat it. You can’t have it all.”

Throughout the interview, Abela defended the growing pains that come with a booming economy. Stopping the property market would be devastating and so would foreign worker influx, he said.

But there is a solution: grow the population at a slower rate. The government’s labour migration policy has already achieved that in its first year and it’s on track to do even better in the coming years, he said.

Abela also expressed satisfaction with his 22,000-vote victory margin and denied allegations of public sector bloating before the election, defending government hiring as strictly necessary.

The wide-ranging interview also pressed the prime minister on exactly when the promised €1,000 super bonus will be paid out, his timeline for the Manoel Island national park and the construction ban during planning appeals, and whether he plans to step down before the next general election.

He also explains why he is not following the World Cup and reveals a few things about his family’s secret love of animals. Many, many animals.

Read the full interview:

MLZ: You won in a big way. But despite a massive, expensive marketing campaign, you also lost half your majority (compared to the 2022 election). Are you worried?

RA: It was a historic win, the first time a political movement won a fourth consecutive mandate. And it happened after a term filled with unprecedented challenges: a pandemic, three wars, inflation and international crises. Despite all that, we won with a 22,000-vote margin – nearly double the largest win the PN ever had in its glory days. I’m very satisfied. Having said that, since June 1, my focus has been on working as if the election were yet to come. We kept pace and we’re working long hours meeting with people and we’re determined to deliver all the pledges in our manifesto.

MLZ: It is a big win, but you still lost significant ground. Did you expect it?

RA: Compared to the 2024 local council results, the Labour Party actually increased its lead. Considering we were vying for a fourth mandate, I’m very happy with the result. But we are working to increase that gap again. On the other hand, the PN has gone back to where it was under Simon Busuttil.

MLZ: But the PN gained votes in every district since the last election.

RA: They’re back to where they were under Simon Busuttil. If they think that’s a win, then good luck to them. Alex Borg said he’d win in a month, I gave him eight, he still lost by 22,000 votes and the PN is acting like they won. On the other hand, there’s us – we won by 22,000 votes and we’re acting as if the two parties are tied.

MLZ: How many government jobs did you dish out before the election?

RA: We only hired what was necessary.

MLZ: OK, how many?

RA: People retire and others migrate from the public to the private sector. And then there are nurses, doctors, police – these are all government jobs. We didn’t employ anyone unnecessarily.

MLZ: And yet, business people continue to tell us their workers are leaving them to take government jobs. You mean to tell me that these business people are lying? Or are they crazy?

RA: People move between sectors all the time. But it’s not fair to imply that government workers slack off. Everyone in this building (Castille), for instance, works long hours and that’s what I expect. We hire based on competence and need.

MLZ: One person told me, personally, that they were working from 6am to 8am every day in a government job they got before the election. They said they’re allowed to leave after 8am. So, are they lying as well?

RA: I cannot speak on individual cases but I can speak for what happens in here and inside government entities. When I visit, I see dedicated, competent people who work hard, and I’m proud of them.

MLZ: So, do you think they needed 13 men to fill a pothole in Gozo?

RA: I think you’re generalising.

MLZ: No, I’m talking about a video everybody watched and I’m sure you have too. Do you believe 13 people were needed to fill that pothole?

RA: I saw government workers in Gozo do their job with great dedication and skill. My message to government workers is always: do not take the job if you’re not willing to give your 110%. And I’m glad to say I’ve seen that sort of commitment.

The PN is acting like they won- Prime Minister Robert Abela

MLZ: You promised that, in your first 100 days, you would change the law so that construction cannot start if there is a pending appeal on the permit. It’s been 30 days. When will this happen?

RA: We have started the process. The law will do three things: it will stop development before all planning stages are closed, it will tighten the time allowed for each planning stage to be decided, and if at any stage the permit is revoked, the applicant will get a refund of the application fees. We will table it in parliament in the first 100 days.

MLZ: Oh, so you’ll only table the draft in the first 100 days. You won’t have it approved. That’s quite different.

RA: Rest assured it will happen, and it won’t include any other bit of legislation from last year’s reform. If we don’t manage to get it approved in the first 100 days, it’s only because parliament is going out on summer recess later this month.

MLZ: What about the €1,000 super bonus? When will it be handed out?

RA: That’s coming soon too. I’m not saying it will necessarily happen by the upcoming budget but we’re working on it.

MLZ: Oh, so it’s not going to happen this year…

RA: I’m not excluding it either.

MLZ: Are we going to get it this year or not?

RA: The electoral manifesto is a plan that’s meant to be delivered on a span of five years.

MLZ: But you promised a €1,000 every year. I understood it would start from the year you got elected.

RA: It’s only natural.

MLZ: OK, so by this time next year we’ll have received the first bonus, right?

RA: If it’s announced in October’s budget, yes. It’s too early and disrespectful to announce any budget measures at this stage. You might be surprised to hear about it in the budget.

MLZ: Manoel Island. When will the national park be completed?

RA: I was there this morning and work is ongoing. We’re doing prep work and design work. There’s a lot that needs to be done. The most important thing is that we stopped the massive development that was planned and it’s now public property.

MLZ: OK, but when will the public park be completed?

RA: It’s hard to say because there’s a lot to be done. We’re already cleaning it up and making it safe for the public.

MLZ: But you promised to deliver a national park, not just to clean it up.

RA: We first need to decide what we want out of the national park. Work will start as soon as possible.

MLZ: Will it be done by the next election, at least?

RA: Yes, of course, but there are massive restoration works as well, and those will take longer.

MLZ: To what extent do you intend to commercialise it?

RA: It’s too early to say. It shouldn’t become a commercial hub, but it shouldn’t be a dead place either. We want a green hub for relaxation.

MLZ: Let’s talk construction and population.

RA: There’s a popular narrative that the country doesn’t need the real estate sector. It’s not the engine of the economy but it’s one of its lubricants. We wouldn’t be in a good place if we had to stop that sector. But we can calibrate it.

MLZ: The reality is that we built so many flats, that if we don’t find a way to fill them up, the whole sector will collapse.

RA: That’s not going to happen. I can guarantee you that because the economy will continue to grow.

MLZ: In this country we build 6,000 new flats every year. For whom are we building them?

RA: For the needs of the country.

MLZ: I don’t think so. I think the country needs to bring in many foreign people to fill those flats every year, because if the flats aren’t filled, they aren’t sold, and if they aren’t sold, developers stop making money.

RA: You’re wrong. Since we introduced the labour migration policy last year, we saw the second lowest population growth since 2017. The policy worked. Our economic sectors are growing and businesses need to expand. We shouldn’t stop them, but we’re calibrating the economy.

MLZ: Will the population continue to grow?

RA: It will continue to grow, but at a slower rate than before.

MLZ: By how much will it grow every year?

RA: In 2025 we saw a net addition of only 14,000. If we keep around that figure I think the country can take it. The population is at 588,000 right now.

MLZ: So, by the next election the population could grow to around 650,000. Can Malta take that much?

RA: It depends if we can maintain a 4% economic growth like we promised people. There is a balance and we can find it.

MLZ: So, if ultimately, we’ll have a slower population growth, why do you need to keep dishing out permits for 6,000 flats every year?

RA: People have a right to build on their land according to local plans. I can’t just take away people’s rights.

MLZ: That’s because you built an economy in which people make money by building flats.

RA: That’s not the only way people make money. We simply can’t stop people from developing their land according to their rights.

MLZ: OK, fair enough. So, you must look at people and be honest and tell them: ‘I didn’t tell you this before the election, but there’s nothing to do about this issue. You have no option but to sit there and take it’.

RA: God forbid we take people’s development rights. No sane democratic country can do that. It would bring anarchy.

MLZ: Tourism is also reaching four million people a year when the government’s own studies have previously warned the country can’t take more than 3.2 million tourists. How many more tourists can we take?

RA: People invested in tourist accommodation, and they put all their savings into these projects.

MLZ: So now we’re now forced to flood Malta with tourists because we need to fill them up.

RA: Not at all. If the country continues to invest in road and medical infrastructure, in clean beaches – and mind you, our beaches are clean – we can sustain it. But that doesn’t mean it’s free for all. The new tourism law reduces inconveniences in short lets, caps the number of rooms in new hotels and prohibits the development of hotels under three stars.

MLZ: That’s fair. OK, so how many can Malta take?

RA: I believe we have reached the critical mass we need. We’re at around four million and I believe the country can sustain those numbers.

MLZ: Can it take five?

RA: You can’t see it that way, because tourism in the past was concentrated in the three months of summer, whereas it’s now spread over many more months, so the infrastructure is less strained. The numbers can change as long as they can be sustained.

People have money in their pockets. You can see this from the number of new boats that have been purchased. It’s massive- Prime Minister Robert Abela

MLZ:  You talk a lot about leading with the carrot and not with the stick. And you’ve introduced some very good measures. You added buses and ferries and offered free public transport to all, you launched carpooling and cycling schemes and initiatives for people to renounce their licence. And we’re still in traffic. By now everyone seems to have realised this hasn’t worked. Except for you, it seems.

RA: I don’t agree. Traffic remains a struggle, but the stick won’t solve anything. Even worse, it creates an injustice on the have-nots. The haves will continue to live their lives normally and that wouldn’t be fair.

MLZ: 46,000 vehicles were added on the roads since the 2022 election. Will there be another 46,000 vehicles by the next election?

RA: We’re working to reduce vehicles from the roads and to improve infrastructure, but again, you seem to be suggesting a stick approach. If a young person would like to buy a new car, should I stop them from doing it? And the reality is that people have money in their pockets. You can see this from the number of new boats that have been purchased. It’s massive. The greatness of the Labour government is that many things that were previously considered luxuries have now become affordable to many people. We went from a situation in 2013 where people were begging for jobs that pay €1,000 monthly to a situation where today they can buy a new car, a modest boat and maybe even go on holiday abroad twice a year. That’s how we elevated people’s quality of life.

MLZ: And they’re paying a price for it in other ways, mind you.

RA: There are trade-offs in life. Sometimes the media tries to paint pictures of utopias…

MLZ: No, you’re painting a picture that makes it seem like it’s all good now.

RA: I’m realistic. There are trade-offs. If you want a new car and a boat, you must accept they bring new realities with them. But that doesn’t mean the government should penalise car ownership. People have earned more money and I’m glad to see people affording new cars, but there are trade-offs. We’re trying to minimise those trade-offs, but we must accept that in life, you can’t have the cake and eat it. You can’t have it all.

MLZ: About the big projects you promised. In the past you shelved big projects when international crises soared and you needed to pump more money into energy subsidies. If it happens again, which project or election promise will you drop first?

RA: I can guarantee you energy prices will remain stable. Because the economy is growing even more than our projections.

MLZ: But something must give at some point if the global situation worsens.

RA: We have enough elbow space to sustain subsidies without compromising any project we promised.

MLZ: So, you mean to tell me that this small country of ours is so strong that it can shield whatever global energy price hikes hit us while also delivering on all the manifesto, no matter what happens?

RA: It’s hard to believe, but it will happen under a Labour government, and we have that certification from the European Commission and the IMF.

MLZ: It just feels a bit hard to believe.

RA: It was hard to believe that a Labour government would succeed in 2013. But our track record speaks for itself.

MLZ: Will you still be prime minister by the next general election?

RA: The people gave me a strong mandate and I’m here to deliver on it.

MLZ: So, you don’t have plans to step down before the election?

RA: I’m here to work and deliver on our manifesto.

MLZ: Most people don’t believe the date of the election wasn’t influenced by the fact that the trial of Yorgen Fenech was happening this summer.

RA: It was never a consideration. I have nothing to do with the jury and neither do any of my ministers. I didn’t need to consider it.

MLZ: You did, because the trial could have created a sentiment in the country that would have lost you votes.

RA: I don’t think it would have influenced voters’ judgment in the election.

MLZ: I think most people don’t believe you.

RA: It’s up to them, but the truth is I took that decision over the ongoing global crises.

MLZ: Who are you supporting in the World Cup?

RA: I’m not following to be honest. We’ve been working late meeting people after the election, and I don’t have much time left for football.

The interview was edited for clarity and brevity.