Addressing Parliament for the first time as Shadow Minister for EU Funds during the Budget 2026 Estimates debate was a moment of genuine significance for me. This is not a portfolio that can be reduced to paperwork and procedures. EU funding shapes the quality of life in our communities, the competitiveness of our businesses, and our country's long-term direction within the European Union.
I bring to this role years of hands-on experience in the financial services sector - a profession where accuracy, accountability and forward planning are non-negotiable. My previous responsibilities as Shadow Minister for Finance made one truth abundantly clear: the health of our public finances and the management of EU funds are inseparable. A country that does not plan its finances responsibly will almost certainly struggle to harness the opportunities that Europe makes available.
The state of our finances
To speak credibly about EU funds, we must first acknowledge Malta's current financial reality. Budget 2026 projections show that recurrent expenditure will rise by €355 million next year, while capital expenditure will fall by €100 million. In practical terms, we are spending more on maintaining the day-to-day running of the state and investing less in the projects that secure our long-term prosperity.
Recurrent expenditure keeps the system functioning; capital investment builds the future. When these two drift apart, the country is choosing short-term ease over long-term resilience.
Simultaneously, debt continues climbing and is forecast to exceed €14 billion by 2028. Our interest bill alone is expected to reach more than €383 million annually - over a million euros a day simply to service existing obligations. This is not an abstract accounting issue; it is a structural weakness that future generations will have to shoulder.
Some dismiss these concerns by comparing Malta to countries in worse fiscal condition. But that mindset is precisely what leads countries into crisis. Economic shocks do not materialise overnight - they accumulate gradually. Serious governments act before they reach the point of no return.
Why EU funds matter now more than ever
It is in this context that the strategic value of EU funds becomes even clearer. These funds are not a "bonus"; they are development tools. When deployed well, they reduce pressure on national finances and help finance the kind of investment a small country might otherwise struggle to afford.
The advantages we enjoy today stem from a national decision that transformed Malta's trajectory: EU membership. The vision of a modern, outward-looking Malta - championed and implemented by the Nationalist Party-opened access to the single market and to European programmes in research, education, innovation and infrastructure.
Over the past two decades, EU funding has supported a wide range of transformative projects: energy security infrastructure, cleaner energy initiatives, upgrades to medical services, educational programmes, research and innovation schemes, community regeneration efforts and support for SMEs and start-ups. These are not theoretical achievements; they are visible improvements in the daily lives of Maltese families.
But the crucial question is whether we are leveraging today's opportunities with the seriousness required.
Cohesion policy and the role of investment
Between 2021 and 2027, Malta has access to significant cohesion policy funding. These funds are intended to strengthen infrastructure, promote innovation, support the green and digital transitions and reinforce social inclusion. At a time when capital expenditure is contracting and debt is rising, these resources are indispensable.
Failing to use them strategically would mean missing an opportunity to reinforce our economy, build resilient communities and support families and businesses at a moment of fiscal strain.
Recovery funding: meant for transformation, not maintenance
The same logic applies to the Recovery and Resilience Facility (RRF). Malta received substantial grants to implement reforms and transformative projects in the wake of the pandemic. But the value of these funds depends entirely on how effectively they are used.
The RRF was not designed to patch up old systems or buy time. It was meant to drive renewal-modernising public services, strengthening our energy sector, improving education and transport systems and accelerating digitalisation. If projects are slow, unfocused or diverted into short-term fixes, the country will lose the long-term economic benefits this fund was intended to secure.
The Central Bank's warning on this matter is clear: unless public investment is efficient and well-targeted, Malta will not reap the full economic gains of this historic instrument.
A call for clarity, capacity and ambition
Across sectors - agriculture, fisheries, youth programmes, research, sports, local councils, NGOs-EU funds remain a lifeline. Yet farmers, fishermen, local councils and voluntary organisations often struggle with excessive bureaucracy and limited technical support.
My commitment is to strengthen Malta's capacity to manage and access these funds effectively. While EU procedures are necessarily rigorous, our national systems must be streamlined, coordinated and responsive. I would like to recognise the important work carried out by the team at SEM in supporting applicants navigating these complexities.
Strong communities do not develop by chance. They require investment in modern public spaces, accessible infrastructure, cultural vitality and the opportunities that allow people to thrive.
Looking ahead: the next EU budget cycle
As Europe prepares for the next Multiannual Financial Framework (2028-2034), Malta must enter these negotiations with a clear strategy. We must defend cohesion policy, ensure that the green and digital transitions are socially fair and make investment in people - workers, families, students and vulnerable groups-the core of our national priorities.
EU funds are the means. People are the purpose.
That is the Malta I want to build: a country that plans ahead, invests wisely and uses every tool available to empower its citizens and safeguard its future.
Graham Bencini
Shadow Minister for Social Security and EU Funds