Barely two weeks have passed since the European Socialists were in Malta for their first ever physical meeting in two years. The theme for this year’s meeting, was “United for a more Social Europe”. And after last week’s budget, I was told by a colleague of mine: “No wonder Malta was chosen to discuss a more social Europe!”

The economic philosophy behind the measures announced last week is one that focuses on building the economy from the bottom up, and not from the top down. After all, it is useless to shower the rich with more money than they will ever need, when those at the bottom will spend all that they can get.

The list of social measures is an endless one. Both the increase in pensions, and the 10% increase in stipends, ensure that our pensioners and students continue to have more money in their pockets. The increased aid when it comes to persons with disability is also welcome, taking a load off the backs of those who really need it thanks to multiple increases vis-a-vis certain grants. As definitely is the extended free child care services  measure - a point I had been lobbying for since my days as an executive member of ‘Nisa Labursti’.

This budget, also promotes diligence, reducing the tax on those working part-time from 15% to 10% - another Keynesian measure which will also ensure a much needed economic multiplier effect. Investment in infrastructure was also promised; however it is not just roads we are talking about here. To the contrary, industrial infrastructure was also given a priority in this budget, ensuring the creation and upgrading of certain hubs which will continue to enable the private sector to invest more.

It has to be stated also that there is huge potential when it comes to innovative solutions, especially when taking into account the European Union’s Horizon Europe programme, a programme that incentivises  public-private partnerships to invest into research and development and address challenges and opportunites of our times. Malta and Gozo could indeed serve as test beds for projects and initiatives that later on could be taken up by larger cities and countries.

Arguably the most popular measure of the budget, however, was the Finance Minister’s announcement that from October of next year, public transport will be free for Maltese citizens and residents alike. This measure, goes a long way in encouraging a modal shift from private vehicles to public transport, and the government should be appluaded for putting it forward. However, it must also be recognized that free public transport by itself is not the only solution to reducing traffic. Interoperability of transport solutions and utilizing better sea, air and underground connectivity are also a must. Therefore I was very pleased to see that there will be investment in maritime transport, in the Xewkija heliport, and that the discussion on the introduction of a metro will continue in the months to come.

I was also pleased to see further investment in Gozo, with the public squares of Sannat and Munxar earmarked to be upgraded in the upcoming year. Naturally, it goes without saying that this investment will encourage the private sector to further invest in these localities, going on to strengthen the Gozitan economy as a whole, while giving regenerated space to Gozitan and visiting families where they can spend their leisure time.

I definitely also welcome the several green initiatives that were included in this budget, including the increase in grants for those who invest in electric cars. Moreover, whereas when first-time buyers buy a house in a Maltese village core, they will be getting a one time grant of €15,000, when the same kind of house is bought in a Gozitan village core, the buyers will be benefitting from a whooping €30,000 – double of what they would have got had they invested in Malta. And to think that the monotonous Nationalist Party, criticized the government for what they said was tantamount to “ignoring Gozo” in the budget of last week!

All in all, I would summarise the 2022 budget as a strong social budget with some well-deserved green focus.  Let us keep on working towards a more social Malta and Europe, whilst continuing the recovery with the targets of the twin transition in mind.

 

Josianne Cutajar is a Member of the European Parliament