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Central Bank says Public Spending Growth Far Exceeds EU Benchmark: A Central Bank report shows Malta’s government spending grew by 14% in 2024—more than double the EU’s recommended pace of 5.9%. Even without one-off costs tied to Air Malta’s closure, spending still rose 10.7%. While expenditure is expected to dip slightly in 2025, the two-year increase remains well above EU limits. However, Brussels will not impose penalties, as the deviation remains within its tolerance threshold. The Bank projects spending growth to stay below EU benchmarks from 2026 onward, though lower tax revenues from recent cuts may constrain finances. Despite this, Malta’s outlook is positive: GDP growth is set to exceed 3% in 2026–27, debt will remain around 49% of GDP, and the deficit should fall to 3% next year.
Scrap Proposed Planning Reform, Restart Process with a White Paper – NGOs: Nine NGOs, led by Moviment Graffiti, have demanded that Bills 143 and 144 on planning reform be scrapped entirely and replaced with a new process beginning with a White Paper. They argue the proposals dismantle safeguards, limit appeals, and reward illegalities, accusing the Planning Authority (PA) of secrecy and siding with developers. The NGOs urged the public to submit objections by September 7. Momentum chairperson Arnold Cassola condemned the PA’s refusal to answer his Freedom of Information request on who was consulted during the drafting phase, alleging the process involved “cosy insider sessions” and unnamed, taxpayer-funded advisors. He accused the PA of hiding key details, calling the consultation a sham and the legislative package harmful to citizens’ rights and the environment.
ReLeaf Opposes Cannabis Roadside Tests, Saying They Don’t Detect Impairment: ReLeaf Malta has criticised the government’s plan to introduce random roadside drug and alcohol testing, warning it will unfairly penalise cannabis users. President Andrew Bonello said cannabis can be detected hours after use without causing impairment, unlike alcohol breathalysers that show real-time fitness to drive. He argued the lack of an impairment assessment risks creating injustice for over 60,000 users. The reforms, announced by Prime Minister Robert Abela and Home Affairs Minister Byron Camilleri after a spate of fatal road accidents, aim to tighten penalties and expand te
Morning Briefing
Police to Gain New Powers on DUI Testing
Police officers will soon be empowered to conduct random roadside drug and alcohol tests, under new amendments to the Traffic Regulation Ordinance announced on Tuesday. The reforms, outlined by Prime Minister Robert Abela and Home Affairs Minister Byron Camilleri, follow a string of fatal accidents this summer and strong calls from professionals and lobby groups for tougher enforcement. Under the proposed law, police will no longer need “reasonable suspicion” to test drivers. Anyone found guilty of causing a fatal crash while under the influence will face a mandatory prison term, removing the option of a suspended sentence. The bill, tabled in parliament last June, will be debated once sittings resume in September. (Times of Malta)
Tourism Growth Accelerates in Q2
Malta’s tourism industry registered strong growth in the second quarter of 2025, with collective accommodation guests rising 8.1% year-on-year to 761,184, National Statistics Office data showed Tuesday. The increase was fuelled by foreign visitors, up 9.2% to 704,604, while resident tourism fell 4.1% to 56,580. Total nights spent surged 9.9% to 3.3 million, with average stays lengthening to 4.4 nights. Occupancy rates also improved, reaching 71.8% overall. Four-star hotels remained the leading segment, accounting for nearly half of all guest nights and achieving a 76.4% occupancy rate. (The Malta Independent)
