Updated 1100
Iran Conflict Adds €100m Pressure to Malta Energy Subsidies, but Deficit Path Unchanged: Finance Minister Clyde Caruana expects Malta to overshoot its energy and fuel subsidy budget by €80–€100 million in 2026 due to higher oil and gas prices linked to the Iran conflict and disruption risks in the Strait of Hormuz. He stressed this will not derail plans to keep the deficit below the EU 3% threshold. Annual subsidy spending currently stands at about €150 million, down from €350 million in 2022. The impact is cushioned by a €250 million contingency reserve and partly offset by a €73 million one-off cost in 2025. (Newsbook)
Malta Film Industry Delivers €1.2bn Boost as Growth Surges: A new report by the Malta Film Commission shows Malta’s film industry has expanded sharply, increasing its economic contribution sixfold between 2018 and 2025 to over €1.2 billion. Employment rose fivefold, from about 500 to 2,500 jobs annually, while the sector shifted to year-round activity. Government revenues from film productions exceeded incentives, generating a €12 million surplus. Growth has also supported related industries, including tourism, transport, and entertainment, reinforcing the sector’s role as a key economic driver. (TVM News)
Malta Police Flag Rise in Organised Poaching and Exotic Dangerous Animal Ownership: Organised poaching for profit and increasing ownership of dangerous exotic animals are among the key environmental crime trends in Malta, according to Environmental Protection Unit (EPU) inspector Elliot Magro. He said poaching has shifted from isolated offences to coordinated activity targeting wildlife, particularly birds, while exotic animal ownership, including big cats and primates, has grown in recent years. The EPU, formed in 2020 from the former ALE structure, focuses solely on environmental crime and works with local and international agencies. In 2025 it received 528 reports and charged 183 individuals, highlighting ongoing enforcement challenges and resource constraints, including limited facilities for seized animals. (The Malta Independent)
Morning Briefing
Labour opens Gozo congress with economy and ‘peace of mind’ pitch
Labour launched its pre-election congress in Gozo on Sunday, with Prime Minister Robert Abela framing the island as central to the party’s vision and a symbol of stability. Addressing delegates, Abela said a Labour government offers “peace of mind” at a time of international uncertainty, pointing to stable energy prices despite global volatility. He highlighted strong economic growth in Gozo, saying the island’s economy has tripled since 2013 and now generates around €1 billion annually, while unemployment has dropped sharply. Abela also outlined ongoing and planned projects, including an airstrip, a new fast ferry link and student facilities. He stressed that development would respect Gozo’s village character while remaining sustainable. The congress comes amid speculation of an early election, though Abela has played down suggestions that a vote is imminent, insisting the timing remains open. (Times of Malta)
Borg accuses Abela of fuelling uncertainty over election timing
Opposition leader Alex Borg has criticised Prime Minister Robert Abela for creating uncertainty by refusing to clarify when the next general election will be held. Speaking at a Nationalist Party event, Borg said the speculation is unsettling businesses and families, arguing there is no justification for an early vote given Malta’s current economic position. He accused Abela of acting in his own political interest rather than prioritising national stability. Borg said he is prepared for an election whenever it is called and is aiming for victory, not merely narrowing the gap. He pledged a people-centred approach, promising support for those struggling while building on existing strengths. On energy, Borg said a PN government would retain subsidies but invest more heavily in renewables, criticising the lack of progress on offshore projects and warning Malta risks falling behind Europe. (Times of Malta)
Malta keeps A (high) rating as growth remains resilient amid risks
Morningstar DBRS has affirmed Malta’s long-term sovereign credit rating at A (high) with a stable outlook, citing continued economic resilience despite rising global risks. The agency noted that growth slowed to 4.0% in 2025 from 6.2% the previous year but remains strong by European standards, driven by domestic demand and a buoyant services sector, particularly tourism. Growth is expected to stabilise at around 3.7% in the coming years, supported by employment and planned tax cuts. However, the outlook is tempered by uncertainty linked to geopolitical tensions and potential energy price shocks. While Malta’s fixed energy pricing policy protects households, it increases fiscal pressure through higher subsidy costs. Public finances have improved, with the deficit narrowing, though risks remain from sustained subsidies, infrastructure spending and external economic headwinds. (The Malta Independent)
