These recent years have seen large shifts in our economies. We have seen the rise of China and other major economic giants. We have all experienced the monumental rise of technological advancements around the world.

On the demographic side, populations continued their trajectory of further ageing and more pressure on pensions and the opening of the labour markets for more female participation.

Environmentally speaking, these last few years saw the crescendo towards greener economies with emphasis on renewables, electric vehicles and more emphasis on recycling and re-using of things we use every single day.

Last, but not least, the financial world saw huge monetary support through central banks around the world to help financial institutions build back their balance sheets following the financial crisis of 2008.

We, Socialists and Democrats (S&D) at the European Parliament understand these global and European challenges brought about by these huge economic shifts. We understand that changes always translate into winners and losers in society. We also understand that challenges must be understood from the ground up, from the local level going up to the regional, national and European levels.

As an MEP close to what is happening in Malta, I listen to what people go through daily, their likes and dislikes, their concerns and hopes. Considering such changes, I understand that, like all other dynamic economies, Malta is at a crossroads.

We recently celebrated 10 years of a Labour government. I am proud to say that these years were characterised by continuous economic growth. Without any shred of doubt, the government succeeded in expanding the economy with several initiatives that enlarged existing industries and brought new industries in the higher value sectors like technology.

This translated into higher incomes for all Maltese and Gozitans, more support for pensioners, lower utility bills, more infrastructure projects in roads and educational centres, higher quality jobs, a low unemployment rate, a more diverse labour force and higher female participation in the workforce.

These improvements modernised the Maltese economy, an economy that pushes forward at full speed ahead, making it one of the fastest growing economies in the European Union.

On the other hand, people are looking beyond the price of objects and services and are appreciating more the importance of convenience, a better quality of life and higher expectations across the board. There are also people who did not benefit in the same way as others did over these last 10 years and there are also those who are struggling too.

As we can all imagine, all these life expectations and people who did not benefit as much as they expected create new challenges for the government. All the results we see today are the effect of past decisions. However, the biggest mistake that we can do now is to be defensive and to stop here. We must look forward, reform and find new solutions to changes that we are going through today and, more importantly, in the future.

These last 12 months saw the pressure of a high inflation rate on the Maltese economy, especially on daily items like consumables. People start questioning everything and the challenge for the government is to find short-term solutions that help people go through their daily lives while building a future based on different economic realities in Europe and beyond.

This brings me to the recent debate in Malta about construction, the move towards a greener Maltese economy, less dependence on low labour costs and the corporation tax changes that the government is planning to undertake in the next few years.

People are appreciating more the importance of a better quality of life- Alex Agius Saliba

Accepting such changes is difficult enough let alone leading, acting and succeeding in taking this country to the other side of the bridge. Moving towards more quality and less quantity in construction buildings mean that standards must continue to rise not only in terms of construction per se but also in terms of the type of living we aspire to and also in attracting higher income and spending tourists.

Higher quality of life implies giving more importance to public spaces, better public transport options and the leveraging of technological solutions that increase competition and convenience at the lowest possible prices.

Heading towards a minimum corporation tax of 15 per cent will challenge our existing economic Maltese model based on a low tax regime and low labour costs, which served us very well over these last few decades in attracting certain types of industries like finance and gaming.

These important decisions imply building on what we already have and placing more emphasis on attracting innovative industries and manufacturing which can help us increase our national productivity. Moreover, less dependence on low taxes means we can attract industries based on higher levels of education and productivity levels.

On the other hand, the government should lead by example in making sure to tackle inefficiency, in incentivising all young, middle-aged and older people to improve themselves through continuous education, in balancing economic and environmental progress and in delivering policies that promote good governance, create jobs, growth and social protection.

The next 10 years will be different from the last decade. The world we operate in as Maltese and Europeans will be totally different. There will be more technological advancements in artificial intelligence, more pressure on pensions due to ageing, more emphasis on a quality of life and the environment around us, better distribution of wealth, more emphasis on workers’ rights, higher inflation due to less dependence on cheap Chinese products and a smaller labour force due to retirements, to name just a few.

For this reason, we as politicians must continue to push for reforms, for the re-thinking of existing practices and to find the right short-term and long-term solutions. Whether we like it or not, change is continuous and today’s decisions will have big implications on the future of our societies, including in Malta.

Choosing a sustainable path needs courage, leadership and coordination between us all.

As part of the S&D group in the European Parliament, I will continue to support the creation of long-term prosperity for us all by building strong and balanced European economies that support economic growth, quality jobs, social protection and poverty reduction. Making sure that our European economies are flexible enough to work for everyone is key to our sustainable European success in the years to come.

We have recently celebrated May 1 and the Labour government’s initiatives in supporting Maltese workers over the years. However, May 1 is not only a one-day celebration. May 1 is a celebration of an economy that works for everyone throughout the whole year.

Alex Agius Saliba is a Labour MEP.

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