Copyright timesofmalta
Often, during international meetings, other prime ministers ask me how Malta is doing so well despite the global economic turmoil. My explanation tends to start with the phrase “when the roots are deep, there is no reason to fear the wind”. Strong families and strong businesses are the roots of our nation. Labour administrations have always understood this. That is why we have never accepted the austerity mantra. We believe that anything that hurts our families and businesses will in the end make our country weaker. Consistently since 2013, we have strengthened the roots of our nation. Our priority was to ensure that all who could work had the right incentives to do so. From the country with the second-lowest employment rate in Europe, we are now the nation with the second-highest rate. Our unemployment rate is the lowest in the EU, while there are about seven open vacancies for every person who is seeking work. Businesses have been given a solid foundation for their success. We were the only country that managed to keep energy and fuel prices stable and low during the last decade. Social security benefits have been increased in both generosity and scope. New benefits like the in-work benefit, tapering, the additional COLA, the carers’ grant, the birth bonus will be among our most prized legacies. Similarly, the repeated boosts of existing benefits such as pensions and children’s allowance, together with the increase in the minimum wage, annual leave and tax cuts have greatly boosted the welfare of families. With this strong foundation, we can resolutely look forward to building our new prosperity. Throughout this year, the government led a broad consultation on Malta Vision 2050. We brought together all strategies in place across government and merged them into one single programme of action. With the input of stakeholders, we have come up with three targets, namely that we join the global frontrunners in terms of human development, household income and life satisfaction. Budget 2026 is the first step in this direction and is in line with the four pillars of the Vision: sustainable economic growth, accessible citizen-centred services, resilience and education, and smart land and sea usage. Through the strong increase in social security benefits and the largest-ever tax cut for parents, we are bolstering the financial security of our families and attempting to address the demographic transition. After doubling the allocation for children’s allowance since 2020, we are continuing to strengthen this benefit, while directing more support to lower-income families both through the in-work benefit and the additional COLA. Robert Abela is prime minister.
