Malta cannot afford to waste more time on political tribalism that is holding it back, Roberta Metsola said on Thursday as she highlighted areas where the country should be surging forward.

Speaking at the 15th annual conference of Finance Malta, the European Parliament president referred to the situation in Europe and said the challenge is not only to adapt to this new reality but also to use it as a catalyst for each country to emerge stronger.

"This means reforming. We cannot afford to be lulled into a false sense of security, we cannot afford to waste more time on political tribalism holding us back.," she said.

These were challenges that required a significant increase in public spending and European funding needed to become more readily available, she admitted.

“A revision of the EU budget, in addition to increased support on own resources, is required. That is why we cannot allow the servicing of our loans to weigh down our capacity for action. On the contrary, this debt can only be repaid if we manage to keep growing our economies.”

Malta, she observed, had created some impressive niches for itself, not least in the financial services sector.

. We need to dig deep into what makes Malta truly attractive for investment, and tax is only one element. It helps, of course, but if we keep fitting the stereotype of what people expect from a low-tax jurisdiction we will be the ones paying the price.

“When we adopted the Euro, we saw how we can come together as a country. We need to re-capture more of that spirit again now. We cannot keep kicking the can down the road. We need to dig deep into what makes Malta truly attractive for investment, and tax is only one element. It helps, of course, but if we keep fitting the stereotype of what people expect from a low-tax jurisdiction we will be the ones paying the price.

“We need to ensure effectiveness and efficiency of our judicial system, we need to end corruption. We have to fix the system to give confidence to investors that not only will they have recourse to justice, but will be able to do so without waiting decades.”

 When she looked at Malta, she said, she could see the potential for excellence in niche economic areas that sustain growth.

“Short-termism is what holds us back from reaching that potential. Mediocrity can never be an acceptable standard.

“We need to have the courage to understand that with 300 days of sunshine a year, we should be a solar power giant. It will mean energy security, cleaner air and cheaper bills. But we cannot do that if our building and construction policies mean every house or office block is in danger of being permanently in the shade. Vision takes courage.

“Overbuilding also means young people are struggling. I met with two accountants in their late 20s in Malta. They simply cannot afford to purchase property. Two professionals. It is unsustainable to price out a generation from the property ladder. The way we build, the manner in which arbitrary decisions have been taken, the unenforced laws, the perceived lack of proper process mean we are in danger of killing the goose that lays the golden egg for a quick injection of cash. It is short-termism and it is holding us back.

The way we build, the manner in which arbitrary decisions have been taken, the unenforced laws, the perceived lack of proper process mean that we are in danger of killing the goose that lays the golden egg for a quick injection of cash. It is short-termism and it is holding us back.

“My point here is that we can build but we can build better. If we build in a way that does not shade our island. That preserves our Maltese charm, culture and heritage. Trying to be something that we are not will never reflect the authenticity that makes our islands unique.”

Metsola referred to EU’s recovery and resilience facility, which put digitalisation as one of its focuses.

“As our societies and way of life have moved online so must our businesses - and we’ve been slower at transitioning than we should have. Private ambition has not been matched by the public investment we need,” she said.

“Gozo is uniquely suited for this. In the digital world, no country is an island. So what is stopping the next silicone valley from appearing here? The answers are regulatory and infrastructure. Our digital infrastructure is not where it should be. Our laws and the protection and support we give to start-ups are insufficient.

“There are so many opportunities that are ours for the taking in the next decade but we have to have the courage to go for it. So I worry when I see children still being taught to prepare for a reality that no longer exists.

"We cannot perpetuate outdated beliefs. We know our children will have to study, work, re-train, work, train again, work somewhere different. We need to adapt to the times and give children the opportunity to become critical thinkers. This is how we prepare our children to adapt, to be innovative, to become leaders. To think long-term,” she insisted.

She said the cynical and easy way out of using Malta's geography as an excuse is a weak one.

"We can excel. We can compete. We can lead. We have led. And that is why I remain unequivocally optimistic about the Europe and the Malta of tomorrow,” she concluded.