Updated 1225
Foreign direct investment stands at €460.8 billion, direct investment abroad at €447.5 billion
As of the end of 2022, Malta’s Foreign Direct Investment (FDI) stock reached €460.8 billion, with a €38.0 billion increase compared to the previous year. FDI flows in Malta during 2022 rose by €18.9 billion, predominantly driven by financial and insurance activities, contributing 88.8% to the total. In December 2022, financial and insurance activities accounted for 97.7% of FDI stocks. Direct investment abroad in 2022 amounted to €23.4 billion, primarily in the form of equity and investment fund shares/units. The FDI stock abroad stood at €447.5 billion in December 2022, reflecting a €37.1 billion increase from 2021, with financial and insurance activities constituting 99.3% of the total FDI abroad. (NSO)
Social security has overpaid €2.4m in children’s allowances, NAO finds
A recent audit revealed that the Department of Social Security (DSS) does not scrutinise potentially suspicious income declarations from parents receiving children’s allowance. The Auditor General suggested that the DSS should consider recommending investigations into specific income declarations by the Inland Revenue when necessary. This would not only ensure accurate children’s allowance distribution to eligible individuals but also contribute to the proper collection of income tax. Despite this recommendation, the DSS argued that it lacks the authority to investigate income declarations. The audit also criticised the government for making insufficient efforts to recover overpayments to parents, amounting to €2.4 million as of January 2023. (Times of Malta)
Significant fossil water discovery beneath Sicily
Researchers, led by Professor Aaron Micallef from the University of Malta, discovered a significant amount of fossil water below the Hyblean Mountains in southeast Sicily. This groundwater, estimated at 17.3 cubic kilometres and located at depths between 800m and 2,100m, could provide a crucial resource by extracting and distributing it, similar to the Great Man-Made River project in Libya, along the Mediterranean coast. The project has gained recognition at the UN Water Conference, and the team aims to assess a development plan to utilise this ancient water source. The research received funding through a Marie Curie Grant project, in collaboration with the University of Malta, Roma Tre University, and INGV. (Maltatoday)
Morning Briefing
Malta bucks EU trend in reducing deficit – Moody’s
Malta stands out as one of the two European Union member states that successfully reduced its deficit without resorting to eliminating energy subsidies, as outlined in Moody’s economic outlook for 2024. According to the credit rating agency’s report, the majority of fiscal improvements across the EU in the past year resulted from a reduction in energy subsidies, as countries scaled back measures implemented during the pandemic. In contrast, Malta and, to a lesser extent, Greece, deviated from this pattern. Moody’s report highlights that Greece experienced a deficit reduction of over 1%, while Malta’s deficit decreased by approximately 0.5% between 2023 and 2024, despite the financial challenges associated with energy subsidies.
(Times of Malta)
PM normalising corrupt connections, activists claim
Prime Minister Robert Abela is seeking to “normalise the corrupt connections between the government and Yorgen Fenech” by permitting the return of Joseph Cuschieri and Rosianne Cutajar.
“Joseph Cuschieri and Rosianne Cutajar are unsuitable for public office. They have not been held accountable for leveraging public positions for personal benefit and engaging in corrupt activities. The removal of individuals with evident corruption ties from public service is not punitive for them; rather, it serves as a safeguard for citizens to prevent the abuse of public trust,” remarked NGO President Robert Aquilina. PM Abela yesterday noted that both individuals had paid “a high political price” and should therefore not be excluded forever from public life. (Maltatoday)
UM to meet UHM to address worker grievances
University of Malta representatives are scheduled to meet with UHM in the coming days to address the unblocking of negotiations and discuss conditions for workers represented by the UHM. The initiative follows a series of directives issued by the UHM Voice of the Workers for administrative, technical, and industrial workers at the University of Malta, effective from January 5. The union took this step due to an industrial dispute recorded on November 27 of the previous year, arising from delays in finalising the renewed collective agreement for these workers, which had expired in December 2021. (The Malta Independent)
