Prime Minister Robert Abela today defended the Labour government’s record in Parliament, emphasising higher tax-free income thresholds, near-zero taxation for middle-class families, and long-term investments in education, technology, and sustainability.

Addressing Members of Parliament, Abela highlighted the financial support Malta’s families now receive under Labour, contrasting it with the levels available under the previous Nationalist administration.

Single individuals earning below the tax threshold now take home €1,000 a month, compared with €708 in 2012 under the PN. Couples with one income benefit from €1,250 tax-free, up from €992. Single parents with one child see their tax-free income rise from €992 to €1,875, while single parents with two or more children can now claim €3,083 tax-free. For parents with one child, each child’s allowance increases from €775 to €1,500, and for parents with two or more children, from €775 to €2,500.

Abela stressed that these figures are part of a broader commitment to improving the standard of living for working families. “Under the previous PN government, middle-class parents faced an average tax rate of 35%. Today, under Labour, this rate is effectively zero,” he said, framing the increase in disposable income as evidence of the government’s pro-family and pro-middle-class policies.

He linked these financial measures to the government’s long-term strategy, Vision 2050, designed to secure Malta’s economic growth and sustainability. Abela defended Labour’s investments in workforce development, highlighting initiatives in lifelong learning, re-skilling, and up-skilling, intended to prepare both new graduates and experienced workers for a modern economy increasingly shaped by artificial intelligence and technology.

Abela pointed to €100 million allocated for AI-focused programmes, which he argued positions Malta as one of the most AI-friendly countries in the European Union. These programmes aim to help employees stay competitive in a rapidly evolving job market, and Abela defended the government’s emphasis on continuous training, saying that businesses investing in employee development are essential for sustained economic growth.

Environmental and infrastructure projects were another key area referred to by the Prime Minister. He cited investments in renewable energy, interconnectors, and the electrification of the Gozo Channel fleet, all of which he said are critical to achieving carbon neutrality and sustainable development. Abela pointed out that the government has moved away from heavy fuel oil and diesel, reducing environmental harm while supporting economic expansion.

Abela also defended urban development projects, such as the Victoria Park investment in Gozo, allocated €20 million from the sustainable urban development fund. Smaller initiatives totalling €6 million aim to improve local infrastructure, traffic management, and safe transport alternatives, promoting walking and cycling. These projects, he argued, reflect the government’s commitment to balanced, sustainable urban growth.

Education and youth support remained a central theme. Abela highlighted that students pursuing priority courses now receive support equivalent to half the national minimum wage, giving them the skills to contribute to a highly skilled and adaptable workforce. He framed this as part of a broader effort to ensure Malta’s economy remains competitive at a European level, producing highly trained graduates and a workforce capable of meeting future challenges.

Abela also drew comparisons between government budgets, defending Labour’s fiscal policies by noting that the 2012 PN budget of €3.1 billion has grown to €9.3 billion in 2026, reflecting increased investment in social support, education, infrastructure, and innovation. He argued that these increases show the government’s ability to balance social priorities with long-term economic planning.

Throughout his speech, Abela presented Vision 2050 as a roadmap developed through extensive consultation with citizens, businesses, and stakeholders. Intermediate targets are set for 2035, with the full vision projected for 2050. “These measures are not pledges; they are actions already taken to strengthen families, grow the economy, and protect our environment,” he said.

He also noted how the Nationalist Party’s feedback on Vision 2050 was both late, and poor and contradictory in its content – symptomatic of a party which does not know what it stands for.

Abela’s speech combined immediate financial relief with long-term planning in technology, education, and environmental policy, highlighting the Labour government’s achievements. By reducing the tax burden for families, supporting students and workers, and investing in renewable energy and infrastructure, the Prime Minister argued that Malta is well-positioned for a sustainable and competitive future.

Abela concluded by reaffirming the government’s overarching goal: an economy that is sustainable, inclusive, and capable of delivering high-quality jobs and opportunities for all citizens, while meeting Malta’s environmental and technological ambitions.

He stressed that families, students, and businesses are already benefiting from these policies and that Vision 2050 represents a practical plan rather than a series of promises.