Morning Briefing
Finance Minister Warns Against Rushing into Mass Transport Project
Finance Minister Clyde Caruana has warned that Malta could be “royally screwed” if a proposed metro system goes wrong, citing huge financial risks. Speaking at a pre-budget business breakfast, Caruana said he was sceptical of both government and Opposition proposals for mass transport systems, including the PN’s trackless tram idea. He warned that large capital projects “always” run into cost overruns and could take several legislatures to complete, costing billions. “As a finance minister, I can’t keep a straight face and say this won’t affect finances,” he said, stressing the need for realism and warning that such schemes may fail if people refuse to give up their cars or walk the distances required to use public transport. The Minister also dismissed a number of PN proposals, including a four-day work week, lower corporate tax, and a VAT cut for restaurants, arguing that they are “not realistic” and would cost Malta around €600 million. During the same event, he revealed that the cost of living adjustment (COLA) will be of less than five euro. (Times of Malta)
PN Accuses Finance Minister of Excuses Over Budget Proposals
The Nationalist Party has accused Finance Minister Clyde Caruana of hiding behind excuses to reject its budget proposals, despite overseeing record national debt levels. Caruana dismissed the PN’s key measures — including a four-day work week, lower corporate tax, and reduced VAT on restaurants — claiming they would cost €600 million. The PN said the minister had no problem adding €1 billion to Malta’s €11 billion debt but “cannot find” €160 million to support businesses or €360 million to help workers achieve a better work-life balance. “We offer solutions, the government offers excuses,” the PN said, arguing that tax reductions would drive higher consumption and compliance, ultimately sustaining revenue while easing pressures on families and businesses. (Times of Malta)
Government has failed to end impunity and corruption – MEPs
European Parliament members have criticised Malta’s slow pace of reform eight years after the murder of journalist Daphne Caruana Galizia. MEPs from across the political spectrum said Malta’s government has failed to end the culture of impunity and corruption that led to her assassination. Slovakian MEP Veronika Cifrová Ostrihoňová urged Maltese authorities to “step up,” while Portuguese MEP Ana Miguel Pedro said justice “is still delayed” and that “impunity still governs the country.” Luxembourgish MEP Isabel Wiseler-Lima accused Malta of acting provocatively slowly, warning that “those responsible continue to enjoy impunity.” The European Commission’s latest rule of law report also highlighted stalled reforms and limited protections for journalists, prompting fresh calls for accountability. (Maltatoday)
Sharp Rise in High Earners Reported in Malta
The number of people declaring annual incomes above €60,000 rose sharply in 2023, according to data tabled in Parliament. Figures from the Finance Ministry show 17,300 individuals earned over €60,000 last year, up from 13,415 in 2022 — an increase of nearly 4,000. The data also reveal that 7,309 individuals declared earnings above €100,000, including 4,694 earning over €120,000. The €80,000–€100,000 income bracket also grew significantly, from 4,105 to 4,937. The figures reflect continued wage growth among top earners, even as many lower-income households face inflationary pressures. The data were presented in response to a parliamentary question by Opposition MP Jerome Caruana Cilia and highlight widening income disparities within Malta’s workforce. (Newsbook)
