Government Debt Climbs Despite Narrower Deficit Malta’s consolidated fund recorded a deficit of €151.7 million by the end of January 2026, an improvement on last year’s figure. Higher recurrent revenue, particularly from VAT and grants, helped narrow the gap. However, government expenditure also rose significantly, driven by increased social benefits, healthcare spending and operational costs. Capital outlays grew sharply, including investment in roads, digital services and military infrastructure. Despite the improved deficit position, central government debt continued its upward trajectory, reaching €11.37 billion, an €811.9 million increase compared to a year earlier. The rise was largely fuelled by higher Malta Government Stocks, alongside additional coin issuance. Reductions in savings bonds, Treasury Bills and foreign loans provided only partial relief. The figures underline that while short-term fiscal performance has strengthened, the country’s overall debt burden continues to expand at a notable pace. (Maltatoday)
Opposition Blocks Second Chief Justice Nominee The Nationalist Party has refused to back the government’s nominee for chief justice, Myriam Hayman, Justice Minister Jonathan Attard confirmed. Hayman is the second candidate put forward after the Opposition also rejected Prime Minister Robert Abela’s initial choice, Consuelo Scerri Herrera. Attard said he met shadow justice minister Joe Giglio, who indicated the PN would not support the nomination, again without giving reasons. The two sides have been in talks since January to replace outgoing Chief Justice Mark Chetcuti, who has reached retirement age but may remain in post until a successor is appointed. A two-thirds parliamentary majority is required for approval, yet consensus remains elusive. Meanwhile, controversy has deepened following reports that a judge sent allegations concerning the prime minister to Cabinet. Attard insisted the government is acting in good faith to secure broad parliamentary support. (Times of Malta)
Chef Warns Maltese Catering Sector at Risk Renowned chef Sean Gravina has raised concerns about the future of Maltese-owned catering businesses, warning the sector could soon be dominated almost entirely by foreign operators if no action is taken. He stressed he is not seeking protectionism but a fair balance between businesses. Although some establishments report healthy turnover, soaring costs since the pandemic — including rent, supplies, wages and utilities — are eroding profits. Gravina argued that a high VAT rate places further strain on operators, noting that other countries have eased tax burdens to support cash flow. He also highlighted disparities in taxation, with Maltese owners paying significantly higher rates than certain foreign structures originally designed to attract major industries. Without corrective measures, he cautioned, local businesses may struggle to survive in their own market. (Newsbook)
