Introducing a four-day working week in Malta would cost the public sector alone around €360 million, Finance Minister Clyde Caruana has cautioned, arguing that such a shift is unrealistic without a major boost in productivity.

Speaking during a Times of Malta business breakfast at Xara Lodge in Rabat - less than a week before unveiling the 2026 Budget - Caruana said he understands the appeal of a shorter working week but insisted that "money doesn't fall from the sky."

"I understand that people want to enjoy more leisure time, but for the economy to sustain a four-day week, productivity must rise significantly," he said. "When productivity goes up, I would consider it - but not now."

Caruana said the move would be too costly at present, noting that the €360 million estimate applies only to the public sector, without factoring in the private sector impact. "That money has to come from somewhere," he added.

The finance minister, who jokingly referred to himself as "the opposition in government," was outspoken on several other issues, including the proposed mass transport system, car ownership, and national airline KM Airlines.

He poured cold water on plans for a metro or tram network, warning that Malta could be "royally screwed" if such a massive capital project went wrong.

"I'm the only person who has voiced scepticism over mass transport proposals," Caruana said, stressing that projects of this scale typically suffer from cost overruns and would need to span multiple legislatures. "As a finance minister, I can't keep a straight face in public and say this won't affect our finances," he added.

He also questioned whether enough people would give up their cars to make the system viable. "If we get it wrong, we're royally screwed," he warned, while ruling out measures such as new taxes or paid street parking to discourage car use - describing such policies as "political suicide."

Turning to other matters, Caruana said families will be the main beneficiaries of the upcoming Budget, promising a hefty pension increase, prioritising health, and revealing that the Cost of Living Allowance (COLA) will rise by less than €5.

On KM Airlines, he confirmed that the government will remain the majority stakeholder but insisted the airline "must run on commercial lines" and involve the private sector. The company's workforce has already been cut from 1,000 to 400 people, he noted, and "we have open channels" with private investors.

Clyde Caruana once again contradicts Robert Abela on mass transportation - PN

The PN said that after long years in which the Government dismissed every idea of a Metro system, now, as another general election approaches, Robert Abela has changed his tune and declared that Malta needs to invest in a mass transportation system - but noted that Finance Minister Clyde Caruana does not agree with this direction.

"Clyde Caruana once again contradicted the Prime Minister. He said that he does not agree with what Abela stated, and that it would be a major mistake for Malta to invest in a mass transportation system," the PN said.

The PN said that just a few days ago, party leader Alex Borg invited Robert Abela to sign an agreement between the two political parties so that, regardless of who is in government, this long-term investment can be made.

"Now we understand why Robert Abela refused to accept this invitation. It seems Clyde Caruana didn't allow him to. The Maltese and Gozitans have every right to ask: what exactly is the Government's position? Is it Robert Abela's or Clyde Caruana's?," the party said.

"The people expect a government that understands their needs and proposes concrete solutions to real problems, not a government divided on the most important decisions concerning the future of our country." 

Labour Government guarantees a realistic and viable future

A Labour Government is a responsible and serious, and does not come up with costless proposals like those proposed by the Nationalist Party, the Labour Party said in a statement.

“The Labour Party believes in sustainable solutions that are costed and delivered. They are not empty promises that end up putting pressure on the people, unsustainable proposals or even populist proposals, like those described by certain entities in relation to recent proposals issued by the Nationalist Party,”

The Finance Minister mentioned how the PN's proposals amount to around €600 million in expenditure that the Nationalist Party has yet to explain how it will pay, whether by cutting off social measures, pensions or business aids.

“We already know that the PN said it will reduce the energy subsidy, meaning that Maltese and Gozitan families will face higher bills again, but that will not be enough to finance their expenditure either,” the party said.

“The Labour Government is the guarantee for the future of the people because it has a realistic and viable plan in the field of mobility, based on studies and economic feasibility that will be presented when they are completed. This is how the Labour Party leads – wisely, seriously and putting first and foremost in the interest of the country”