A recent article in the Wall Street Journal addressed how the British Prime Minister Keir Starmer was described at the time that he was elected as a European litmus test for pragmatism over populism, but who unfortunately has so far failed to deliver on several fronts. 

Populism is defined in politics as being the readiness to listen to the people, rather than just an elite group, and striving to address their concerns through policies and actions for the common good.  In recent years, there has been a noticeable shift in the nature of political promises on a global scale.

Rather than focusing on solutions that promote long-term sustainability and the overall well-being of society, there has been an emerging trend of pledging things that are not truly deliverable. More concerning is the increasing emphasis on short-term gains, which are often prioritised at the expense of enduring prosperity and responsible governance. This change in approach risks undermining the foundation required for lasting societal and economic health.

Malta is no exception of course, where we have seen an increasing need by politicians, possibly partially driven by the disproportionate amount of Member of Parliaments per capita, to outdo their opponents and even colleagues in coming up with recommendations which are populist in nature.  One might argue that this is the very basis of democracy, an opinion which I do share, as long however as they are responsible, fact-based, researched and sustainable suggestions.

Having represented The Malta Chamber on the Employment Relationships Board (a tri-partite consultative body dealing with legislation relating to employment and changes thereto), I have observed that when there is a demonstrated need supported by evidence, stakeholders typically work collaboratively to address matters that impact employees and their well-being. For example, The Malta Chamber advocated for legislative changes to regulate temping agencies and their activities, aiming to establish fair market conditions and prevent potential abuses.

However, one notes with concern the continuous assault on the country's competitiveness resulting from the introduction and proposals, of non-researched and uncosted initiatives in the forms of various leave types, by politicians, and other social influencers.  Whether they are justified or not, can only be established if based on holistic, fact-based research, taking into account all contributors to the problem at hand and the effects, positive or negative, of the proposed solutions.  In such cases, we definitely do not need to re-invent the wheel.

It is a well-known fact that Malta is already facing a labour and skill shortage. While The Malta Chamber is adamant against any form of abuse, it cannot but insist that there is a limit of how much businesses can absorb without critically jeopardising their competitiveness and growth.  While the challenges associated with rising operational costs and restrictive policies are particularly acute for companies that are export-oriented and those competing on the global stage, it is important to recognise that local businesses are also significantly affected.

The pressures of increased expenses and limitations on growth are not confined to international players; rather, they extend across the domestic market as well. These factors can have a range of direct and indirect negative consequences, not only constraining the ability of businesses to expand and innovate but also adversely impacting the broader economy and the population at large. Ultimately, such challenges undermine economic vitality and societal well-being, highlighting the need for balanced, evidence-based policymaking.

As the country strives to adapt its economic model towards a high value-adding one, generating high quality jobs, we need to stop thinking in terms of short-term populistic gains and focus on long term strategies, as highlighted in The Malta Chamber's pre-budget document.  Anything short of that might result in immediate popularity at the expense of longer-term prosperity. 

Ruben Cuschieri - BOM and Council Member at The Malta Chamber of Commerce, Enterprise and Industry.