“No Such Thing as Free Money”: Employers Warn Against Election ‘Bidding Wars’ 

The Malta Employers’ Association today launched its Memorandum to Political Parties ahead of the general election, presenting a clear, values-driven framework for Malta’s future. The document demands a shift away from short-term electoral “giveaways” toward a sustainable economic model built on competitiveness, responsibility, good governance and the national interest.

The Association emphasized that the choices made now will shape Malta’s economic resilience and the quality of life of its citizens in the coming years. Announcing the launch of the electoral proposals, Association President Ivan Refalo stated:

“Elections should be a moment for serious reflection about the future we wish to build. This document was articulated with a clear sight of our long-term vision whilst seeking timely solutions to short-term challenges. Our proposals are anchored in traditional values: responsibility, fairness, accountability and respect for work and enterprise.”

Strategic Priorities for a Resilient Malta

Malta Employers’s proposals target twelve strategic pillars designed to transform the current economic landscape.  These include:

Economic Transformation & AI Readiness: A decisive move away from low-value, labour-intensive activities. The Association calls for a reduction in the dependence on imported labour through investment in high-value sectors and education to ensure Malta is prepared for the AI revolution.

Labour Market & Productivity: A focus on a balanced market that promotes flexibility and work-life balance without compromising operational realities through a labour-force rationalising strategy that seeks to increase supply of hours worked via flexible work arrangements.

Demographic Sustainability: Addressing Malta’s low fertility rate as an “existential challenge” by implementing a holistic support plan for families.

Environmental Protection: Shifting away from degradation, overdevelopment and pollution. Economic progress must incorporate environmental protection, which is central to citizens’ morale, well-being and to Malta’s attractiveness.

Governance & Institutional Trust: Strengthening governance structures to restore faith in national institutions through non-negotiable transparency and ethical standards.

Fiscal Responsibility: Ensuring that today’s political spending does not become tomorrow’s tax burden on business and future generations.

Active EU Participation: A more assertive stance with the EU to ensure regulations reflect the realities of a small, peripheral, island state, avoiding “gold-plating” of EU directives in local laws.

The Association also expressed deep concern over the “populist tone” of the current campaign. It warned against the “bidding approach,” where political parties compete with poorly costed and unrealistic promises to win votes.  Once again, it referred to the €1,000 annual bonus promised to all full-time employees which is to cost €200 million – equivalent to almost twice the annual contribution to the University. 

 “The temptation to win short-term support through eye-catching pledges is deeply irresponsible,” Mr. Refalo warned. “There is no such thing as free money. Every unaffordable promise ultimately translates into higher debt, higher taxes, or reduced opportunities for the next generation.”

The Association appealed to the political parties to join forces and together with the social partners, seek consensus on matters of national priority. Demographic challenges, economic transformation and protection of the natural environment are amongst the key issues that call for a more collaborative approach between political forces, social partners and the civil society to set the right direction for Malta.

“Leadership is not measured by how much one promises, but by how responsibly one governs,” the Malta Employers concluded. “Malta deserves policies that are realistic, coherent and anchored in a long‑term vision that serves both today’s society and tomorrow’s citizens” concluded Mr Refalo.

The Malta Employers Association reaffirmed its commitment to engaging constructively with all political parties and stakeholders and expressed its readiness to contribute its expertise and practical insight in the national interest.

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