The Malta Independent 31 July 2026, Friday
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TMID Editorial: Caruana needs to convince Abela first

Wednesday, 11 October 2023, 11:12 Last update: about 4 years ago

Finance Minister Clyde Caruana does not seem to have an idyllic relationship with the Prime Minister. Earlier this summer, there were reports that the two exchanged heated words during a Cabinet meeting.

It is clear that the two are not on the same page on important matters.

When, in April this year, Caruana said that the economy must rest on everything except construction, Abela did not repeat these words. This means that the government is not on board with Caruana’s idea.

When, two months later in June, Caruana said that Malta needs to change its economic model as otherwise it would need a population of 800,000 by 2040 if it is to sustain itself as it is, Abela must have winced.

Caruana had touched on two subjects, linked to each other, about which there in an increasing concern among the people.

The ever expanding construction industry has come about as a result of the population growth policy that the Labour government has endorsed since 2013, first with Joseph Muscat as Prime Minister, and later with Robert Abela.

Malta’s population has jumped to 550,000 from the 425,000 there were 10 years ago, which meant more confusion, more traffic problems, more environmental issues, more energy difficulties, more education trouble, more infrastructure struggles and so on and so forth.

Muscat first, and Abela now, deny, or at least ignore, that there is a population density problem in Malta. But it is evident to all those who want to see that the situation is not sustainable.

Caruana appears to be the only one in the Cabinet of Ministers who sees it as it is. The other ministers and parliamentary secretaries have not said anything about it, except for Silvio Schembri who had reportedly said that the model needs to be adjusted to reflect the country’s needs, but not changed. They may be grumbling among themselves, or else making their points in closed Cabinet and parliamentary group meetings, but Caruana is the only minister to have openly and publicly highlighted the matter.

But he has a huge mountain to climb, and this takes the shape of his chief, Robert Abela, who is not inclined to accept that there is a need to change Malta’s economic model.

Caruana has the backing of constituted bodies, in particular employers, who have expressed their concern about Malta’s current economic model, and are pushing for changes which only the government, as the country’s administrator, can implement.

The latest intervention came from the Chief Executive Officer of the Chamber of Commerce, Marthese Portelli who, in an interview with this media house, said the economic model must be changed from one which is input-driven to one which is growth-driven, and more based on value-added.

The economic model, she insisted, needs to be put on a more sustainable footing. Economic growth based on less labour input will help improve the quality of life and rein in the stress on Malta’s infrastructure at all levels.

For Caruana to have it his way, and in the way that is being advocated by entities like the Chamber of Commerce, he must first convince his own leader and Prime Minister.

The government is in the process of compiling its plans for next year, in what is commonly known as Budget Day. We will learn more about the government’s intentions when Caruana reads his speech on 30 October.

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