Joseph Muscat promised to create a new middle class, which would feel like a “little rich man” (sinjur żgħir).

There are certainly people in Malta today who feel better off apart from the well-rewarded cronies and persons of trust. But the feeling of new affluence and security is largely based, the experts say, on a mirage.

Muscat and, now, Abela, did not create a new middle class. They’ve created and enlarged a new under-class, based on an economic model of importing workers to Malta.

It may have created a perception of upward mobility among the Maltese. But this model has had significant implications for the socio-economic fabric of Malta. It has led to a shift of class boundaries that camouflages the true dynamics at play.

The Muscat-Abela strategy has undeniably driven economic growth in Malta. By importing workers to fill labour gaps, especially in sectors such as construction, hospitality and care, the economy has expanded. Unemployment has dropped. And Maltese who were once part of the lower class may now think of themselves as part of the much promised middle class.

It’s an illusion. The conditions of the original lower class have not substantially improved. Rather, a new lower class – largely consisting of immigrant workers – has been created.

The perceived prosperity of the Maltese depends on exploiting a marginalised class of foreign workers

These workers are often paid less, face poorer, more precarious working conditions, and have less access to social security benefits. The economic model hinges on this imported labour, which is exploited for low wages.

The Maltese citizens who were once at the bottom of the economic hierarchy are not, realistically, much better off. In some ways they are even worse off.

With the higher cost of living, they are struggling to make ends meet. The higher property prices are making it impossible for young Maltese couples to buy their first property. When they opt to rent out a place, they find themselves competing with foreign workers.

Ironically, the high rentals have become more affordable for the bigger groups of foreign workers, crammed together in squalid conditions, than for the newly graduated young couples.

The perceived prosperity of the Maltese, therefore, depends on exploiting a marginalised class of foreign workers. The economy has grown but not diversified. None of this is sustainable economically.

It’s a short-term solution that fails to address systemic issues such as wage stagnation and economic inequality.

And it is not sustainable in terms of basic human decency, either. This model has created social tensions. It has exacerbated xenophobia and racist sentiments, as native Maltese citizens perceive immigrant workers as threats to their jobs and culture. The Labour government is fostering an environment that is fuelling social conflict and making scapegoats of marginalised groups.

No society can be brutal with one group without becoming brutal with everyone. And we’re seeing this play out as well in schools, on the streets, and especially in the callous decisions taken by those who should be public servants.

The real challenge for Malta is to achieve sustainable growth that benefits all residents, not just those fortunate enough to be close to those in power.

The Muscat-Abela model is a failure. It lacks foresight. As automation and AI continue to disrupt industries, the demand for unskilled workers is likely to decrease. By basing the economy on a model that exploits unskilled foreign workers, Malta is potentially setting itself up for future economic instability.

The recent national crisis, brought about by the total failure of our electricity system, is a clear sign of how unprepared our country is. Ten years since the birth of the Muscat-Abela economic model, the government has clearly failed to invest in the much-needed infrastructure of our country.

The social partners have long been indicating that Malta needs to work towards a new economic model which would really make a difference and steer the country towards a more sustainable and durable economy.

We need an economic model where diversity, innovation and real long-term growth are the preferred choice, not the short-sighted quick fix.

Claudette Buttigieg

Claudette Buttgieg is a PN MP.