As Malta prepares to identify the course it wants to take in the years and decades ahead, it is worth stepping back from the political noise and assessing where the country truly stands. The past years have brought achievements that merit recognition: robust headline growth, resilient core sectors and a workforce that has demonstrated adaptability despite economic uncertainty.

Yet among larger businesses, smaller firms and families, a growing concern is emerging. Malta's economic model is showing signs of strain. Acknowledging the positive while being honest about the challenges is essential if we are to chart a sustainable and competitive path forward.

The economy has continued to expand at a pace that outperforms the EU average. Tourism, financial services, digital gaming and advanced manufacturing remain resilient pillars. These sectors did not grow by coincidence; they stem from long-term strategies pursued across legislatures, built on a shared belief that Malta must compete globally through specialised, high value niches. The Nationalist Party is proud to have contributed to shaping these sectors, and we also acknowledge the government's efforts to sustain them.

But no business leader defines success solely through GDP. Persistent inflation is eroding consumer confidence and compressing business margins. The government's own Economic Survey confirms inflation remains above the EU average, with food prices a major driver.

At the same time, businesses are struggling with daily productivity obstacles that cut across sectors: delays caused by congestion, slow or inconsistent administrative processes, difficulty finding skilled staff and rising operating costs tied to infrastructure strain. These issues reduce efficiency on the ground, making it harder for firms to plan, serve customers and scale. For many businesses, the challenge is no longer growth potential, but the growing time and resources wasted on avoidable bottlenecks.

Labour market dynamics point to notable challenges. Unemployment remains low at around 3%, yet approximately 10,000 individuals are registered as jobseekers. At the same time, employers face acute skills shortages, prompting growing reliance on non-EU labour. Skills mismatches weigh heavily on Maltese businesses. This is no longer a sectoral issue. It is a systemic one, affecting productivity, service quality and Malta's long-term competitiveness.

Raising productivity must therefore be a central national priority. While Malta has registered impressive headline growth, the underlying engines that sustain long-term competitiveness are not keeping pace. Productivity gains across key sectors have slowed, weighed down by skills gaps, infrastructure bottlenecks and an economic model that increasingly depends on expanding the labour force rather than improving efficiency and value creation. If Malta is to remain competitive, it must transition toward an economy fuelled by innovation, higher skill intensity and smarter use of technology - not volume alone.

Achieving this requires coordinated reform. Businesses need a regulatory environment that rewards innovation and reduces administrative burdens, while workers need access to continuous upskilling pathways that match emerging sectoral demands. By aligning education, workforce policy and enterprise support, Malta can unlock the next wave of productivity growth, one that strengthens competitiveness and raises living standards for families while enabling firms to scale sustainably.

Competitiveness indicators reflect this reality. EY's Attractiveness Survey offers a mixed bag: it highlights strong taxation and digital infrastructure, yet investors repeatedly flag weaknesses in skills availability, infrastructure capacity, governance and strategic planning. These are not abstract concerns. They shape investment decisions, operational costs and relocation strategies. Businesses demand clarity, predictability and efficiency, qualities that Malta has not consistently delivered in recent years.

The labour market, for instance, needs urgent intervention: targeted education reforms, sector specific upskilling and a strategic approach to talent attraction. Infrastructure development, from transport to digital government, must match our aspirations. Reputational concerns remain an economic vulnerability, directly affecting foreign investment, market access and sectoral growth.

As an Opposition, our role is to be constructive. Where the government takes steps in the right direction, we support it. Where policies fail to address long-term challenges, we speak plainly. My party believes that Malta's economic model can and should evolve toward one that emphasises value over volume, skills over sheer numbers, and investing more in research, development and innovation. The PN has already put forward practical proposals to ease pressures on households and businesses: making the COLA non-taxable, supporting employers through tax credits so that wage adjustments do not translate into price hikes and establishing a national fund to cushion import- and export-dependent industries from global shocks that feed inflation.

But beyond immediate measures, Malta must think long term and act accordingly. Economic visions and strategies mean little unless backed by implementation, transparency and measurable targets. Our ambition should be to build an economy that attracts talent not only because of tax incentives but because it offers a high quality of life, a green and modern infrastructure, and a labour market built on skills, fairness and productivity.

However, a vision on its own, just like the budget, changes nothing. Implementation determines credibility. Malta cannot afford another strategy that gathers dust while immediate economic pressures intensify. Cost of living pressures, overstretched infrastructure, bureaucratic bottlenecks, never-ending traffic jams and institutional weakness cannot be deferred to 2030 or 2040. They require decisive action now. Moreover, alignment is fundamental, we do not afford spending years where stakeholders are not in sync.

Jerome Caruana Cilia, PN MP and Shadow Minister for the Economy and Enterprise

Maltese families and businesses do not expect miracles. They expect seriousness, competence and clarity. They expect a vision that retains what works but has the courage to change what does not. The PN stands ready to play its part: to safeguard our strongest sectors, to modernise the foundations of competitiveness and to ensure that economic growth is not only sustained but shared. This should not be a partisan ambition. It is a national one and it is the standard our country deserves.