Updated 1130
Abela Pledges Continued Investment in Welfare, Pensions and Youth in Budget 2027: Prime Minister Robert Abela has pledged continued investment in social welfare, pensions and young people in next year’s Budget, while confirming that fuel and energy subsidies will remain in place. Speaking during pre-budget consultations with the Forum Unions Maltin (FUM) at Auberge de Castille, Abela said Malta continued to enjoy economic and social stability despite international challenges. He highlighted the country’s highest-ever credit rating from DBRS and National Statistics Office figures showing increased exports between January and August compared with the same period in 2025. Abela also emphasised the government’s commitment to strengthening the labour market, expanding skills development and improving opportunities for students and young people. He said continued fuel and energy subsidies would help protect households and businesses from international economic pressures while supporting economic growth. (The Times of Malta)
Borg Calls for Tax-Free COLA and AI Skills Investment Ahead of Budget 2027: Nationalist Party leader Alex Borg has proposed exempting the Cost of Living Adjustment (COLA) from tax and investing in artificial intelligence training during pre-budget talks with the General Workers Union (GWU) in Valletta on Monday. Borg said the Budget 2027 should prioritise future generations, highlighting shared proposals with the GWU on tax-free COLA, exploring shorter working hours, and strengthening workforce upskilling and reskilling, particularly in AI. He also called for greater investment in renewable energy to improve Malta’s energy independence, noting the country generates just 16% of its electricity from renewable sources, the lowest share in the EU. Borg urged the government to build on its Vision 2050 strategy. Meanwhile, the GWU advocated a people-centred budget focused on mental health, transport policy and a long-term population strategy. The meeting formed part of the PN’s consultations with social partners ahead of Budget 2027. (Newsbook)
Malta Owed Nearly €1.2 Billion in Unpaid Taxes, Parliament Told: Malta is owed nearly €1.2 billion in uncollected taxes, with €495.2 million due from individuals and €701.1 million from companies, figures tabled in Parliament by Finance Minister Clyde Caruana show. Of the total, €412.9 million is considered recoverable, while €212.9 million is subject to payment plans and €2.3 million is contested or under appeal. Caruana also revealed that 27 individuals and 89 companies owe between €500,001 and €1 million, while nine individuals and 43 companies owe between €1 million and €5 million. Three companies owe more than €5 million. The figures emerge as the government prepares to use an AI-powered system to identify potentially suspicious income declarations. (Maltatoday)
Morning Briefing
MUT says Education Ministry lacks expertise to lead curriculum reform
The Malta Union of Teachers has criticised the Education Ministry’s handling of a proposed school curriculum reform, warning that the department lacks the expertise and structures needed to lead the process. Education Minister Byron Camilleri recently confirmed that a curriculum review was under way following Malta’s poor performance in the 2025 Programme for International Student Assessment, in which pupils scored below the international average in reading, mathematics and science. The union said the last curriculum review was published in 2012 and agreed that changes were necessary, but questioned how they could be implemented without a head of the Curriculum Department, subject specialists and functioning curricular boards. It also criticised the absence of consultation with educators before the reform was reported in the media, stressing that teachers’ involvement was essential to changes affecting schools, pupils and families for years to come. (The Malta Independent)
Unions body propose 36-hour working week and changes to pensions
Forum Unions Maltin has called on the Government to retain energy subsidies and introduce a series of measures to improve workers’ conditions ahead of the October 26 Budget. Its proposals include gradually reducing the standard working week from 40 to 36 hours over three years without loss of pay, starting in the public sector, and revising pension capping. The confederation also wants higher income thresholds for reduced taxation on part-time work, tax exemptions on the first €30,000 earned by young people during their first three years of employment and a legal right to disconnect. Other recommendations include greater access to flexible working, stronger protection against workplace stress, extended paid study leave and €500 annual government contributions towards individual learning accounts for up to 10 years. Forum also called for measures to address the misuse of fuel, electricity and water. (Times of Malta)
Planning appeals reform to go before Cabinet today
A Bill reforming planning appeals will be presented to Cabinet today before proceeding to Parliament for its second reading. The central proposal is that construction or demolition cannot begin while a permit remains subject to appeal, addressing a long-standing concern that contested developments can proceed before the appeals process is completed. Prime Minister Robert Abela said the reform would provide greater certainty by establishing clearer timeframes for decisions by the tribunal and Court of Appeal. The measure follows a pledge made in 2023, although the original proposal was later incorporated into a wider package of controversial planning reforms. Abela said further consultation had taken place over the summer and maintained that the legislation balances competing interests. The Nationalist Party, which conducted its own consultation on the reform, said that it supports it and has been urging government to advance it for years. (Maltatoday)
