Updated 1100
ECB Raises Interest Rates as Energy Costs Keep Inflation in Focus: The European Central Bank will raise its three key interest rates by 0.25 percentage points from 16 September, citing persistent inflationary pressures, particularly from rising energy costs. While the increase does not automatically mean higher loan rates in Malta, commercial banks may adjust borrowing costs. Professor Philip Von Brockdorff warned that higher energy prices could further drive up consumer and production costs, while governments and businesses may face more expensive borrowing. Malta’s inflation rate stood at 2.1% in July, below the euro area’s 2.9%. He said the rate hike is not a sign of crisis but an effort to contain inflation. (TVM News)
Rangers Warn of “Full Impunity” in Malta’s Illegal Tuna Trade: The Malta Ranger Unit (MRU) says three months of monitoring revealed widespread illegal bluefin tuna fishing in Malta, with known offenders operating openly and largely escaping enforcement. Rangers documented illegal activity near fish farms and said illegally caught tuna is routinely landed during closed seasons and sold locally, sometimes within hours. The MRU stressed this is a commercial operation rather than subsistence fishing, with individual tuna fetching hundreds of euros. After raising concerns with Malta’s fisheries authorities, the MRU also alerted ICCAT, calling for stronger enforcement and an end to the perceived impunity. (Newsbook)
Climate Action Must Start With Citizens, Malta’s Climate Ambassador Says: Malta’s Climate Ambassador Simone Borg says citizens must play a greater role in cutting fossil fuel use and emissions, alongside government action. She highlighted Malta’s limited land and renewable-energy options, stressing that technology alone cannot solve the climate crisis. Borg said Malta must accelerate both emissions reductions and climate adaptation, particularly as global warming approaches the 1.5°C threshold. While Malta has made progress, she believes more can be done, especially in transport, buildings and renewable energy. She called for stronger collaboration, arguing that climate change requires a collective global effort. (The Malta Independent)
Morning Briefing
Diesel subsidy bill surges, warns Finance Minister
Government’s forecast cost of subsidising diesel in 2026 has risen from €30 million to around €75 million in just three months, Finance Minister Clyde Caruana has warned. The sharp increase has raised concerns ahead of next year’s Budget, with global fuel prices continuing to put pressure on government finances. Caruana said the forecast had stood at €30 million in April and May but had climbed to about €75 million by three weeks ago, with no clear end to the upward trend. The government had set aside a €250 million energy subsidy buffer earlier this year to shield households and businesses from international price increases. Caruana said keeping energy prices stable remained a priority, but maintaining the fiscal deficit below 3% was “sacred”. He indicated that spending in other areas could have to be reviewed if fuel subsidy costs continue rising. (Maltatoday)
Borg pledges anti-mafia laws after Fenech acquittal
Opposition leader Alex Borg has pledged to push for anti-mafia and unexplained wealth laws following Yorgen Fenech’s acquittal over the murder of journalist Daphne Caruana Galizia. Borg said the proposed legislation would implement recommendations from the public inquiry into Caruana Galizia’s assassination and could be presented as an “omnibus” law. He said unexplained wealth orders would be modelled on similar UK legislation, arguing that some people in Malta appeared to live beyond their declared means. Borg criticised the government for failing to introduce the inquiry’s recommendations after five years but said he was willing to work with it on the legislation. He also said testimony during Fenech’s trial had highlighted institutional shortcomings and links between political and business interests. Borg acknowledged concerns over his proposal for journalist warrants, saying he would drop it if journalists believed it would harm the profession. (Times of Malta)
Rain and thunderstorms forecast as Malta’s 118-day dry spell ends
Rain, strong winds and possible thunderstorms are forecast across Malta this week, bringing an end to 118 consecutive days without significant precipitation. Temperatures are expected to fall, with cooler winds and isolated showers bringing maximum temperatures down by 3C to 4C to around 28C. Minimum temperatures are forecast at about 23C. The change will end an exceptionally dry period in Malta, which the Met Office said on Friday was the first summer in six years during which the islands recorded not a single drop of rain. Malta normally receives an average of 15.6mm of rain during September. (The Malta Independent)
