2025 saw controversial reforms related to magisterial inquiries and planning, a major ruling regarding the hospitals' deal, and an internal leadership election take place within the Nationalist Party.
It was an eventful year which saw reforms to magisterial inquiries and proposals to amend planning laws, both of which saw uproar, a heist from the AFM barracks, and Malta recognising the State of Palestine.
A tragedy was also narrowly avoided when a building collapsed in Paceville, because people inside the building had been evacuated hours earlier. A school stabbing shocked the nation and in the last part of the year the minister responsible for affordable housing came under fire for his property deals.
Magisterial inquiry reform
The government reformed the magisterial inquiry system at the start of 2025. The move sparked controversy and saw disagreement from the Opposition on the grounds that it is now more difficult for people to request an inquiry, which works in favour of others who are potentially in the wrong.
Citizens must now file a police report before requesting an inquiry. Only if the police fail to act within six months can the matter be brought before a judge - bypassing magistrates altogether. In addition, admissible evidence must be presented: that is, material that would be accepted in a court of law, not just information pointing to suspicious or unlawful activity.
The reform bill passed a third reading stage vote in Parliament in April, with the PN voting against.
A number of NGOs, including Repubblika, Occupyjustice, Fondazione Falcone, Aditus, and the Daphne Caruana Galizia Foundation organised a protest outside of Parliament at the same time that the bill was being voted on. Professor Kevin Aquilina, one of Malta's foremost legal scholars, described the reform as a "fatal torpedoing of the rule of law".
AFM drug heist
This year also saw a drug theft from an AFM barracks in Safi.
The theft occurred between 22 and 23 February. The incident involved the theft of 132 kilogrammes of cannabis resin, previously seized by the Armed Forces following a large haul at Malta Freeport in June of the previous year. Initial investigations estimated the missing amount at 226 kilogrammes, but forensic analysis later confirmed the stolen quantity as 132 kilogrammes.
A number of people were arrested, and an administrative inquiry was also launched.
Home Affairs Minister Byron Camilleri offered his resignation after the incident, but Prime Minister Robert Abela refused it. The Brigadier of the Armed Forces of Malta, Clinton O'Neill, had been suspended. His suspension was later lifted following the conclusion of an inquiry that had taken place.
Six people were charged in court with carrying out the heist.
In addition, an administrative inquiry was also carried out, led by judge Geoffrey Valenzia. The inquiry had found that one soldier tasked with monitoring security cameras was watching a film at the time of the robbery while the second had been asleep. Following the conclusion of the administrative inquiry, an Armed Forces of Malta soldier was dismissed and another had been demoted, while others faced other penalties.
Malta recognised the State of Palestine
Internationally, the war in Gaza and the tragic deaths that occurred dominated news this year, and Malta joined a number of other countries in taking the decision to recognise the State of Palestine.
Malta's recognition of Palestine had been a topic of discussion for many years. In May, Prime Minister Abela told Parliament that he was determined to be the prime minister who will officially recognise the State of Palestine, but reiterated his stance that Malta was waiting for the opportune moment to do so.
The moment came later in the year, when Abela was speaking at a United Nations Conference on the Two-State Solution, which took place in New York in September.
Abela, in his speech, stated, "clearly and unequivocally that the Republic of Malta is proud to confirm our official recognition of Palestinian statehood. We do so as a demonstration of our concrete commitment to a genuine and peaceful two-State solution as the only solution that will secure the futures of both peoples. Malta is equally unequivocal in our support for the right of Israel to exist alongside a democratic Palestinian state".
PN leadership election
Bernard Grech announced his resignation as leader of the Nationalist Party in June, sparking a leadership campaign and election within the party.
His announcement came in the wake of a survey which placed the PN some 39,000 votes behind the PL.
In the beginning, there were many calls for EU Parliament President Roberta Metsola to contest for the role. Metsola, however, ruled herself out of the race. She said that she had been approached by many people encouraging her to run but firmly concluded that "my commitment and focus cannot be divided". The Maltese MEP, who was re-elected President of the European Parliament last year, said the responsibilities that come with her current role - both for the European Union and for Malta - require her "unwavering attention".
Then two PN candidates came forward and threw their names into the hat, former PN Leader and current MP Adrian Delia and MP Alex Borg.
In September, Borg was officially declared as the next leader of the party, beating Delia by a mere 44 votes - 20,795 paid-up party members were eligible to vote in the election and, the election had a turnout of close to 86%.
The end of the Golden Passports
In April, the European Court of Justice handed down its decision regarding Malta's Golden Passports scheme.
The European Commission had taken Malta to court over its citizenship by investment scheme, which was first launched in 2014 under the name of the Individual Investor Programme. The scheme was later rebranded as the Maltese Citizenship by Naturalisation for Exceptional Services by Direct Investment.
The Commission asserted that the scheme, which granted naturalisation in return for predetermined payments or investments to "persons without a genuine link with Malta", constitutes an infringement of the rules relating to Union citizenship and of the principle of sincere cooperation. The Court found that the scheme was in violation of European Union law.
In June, the government tabled a bill in Parliament which regarded Malta's citizenship. Then in July, with both sides of the House in agreement to revoke the Golden Passport scheme in favour of expanding the citizenship by merit avenue, Parliament sprinted through the bill looking to enact the changes following the European Court's ruling.
Minister for Home Affairs Camilleri, when he presented the bill, said that it would enact the revocation of the country's Golden Passport scheme and replace it with expanding the already existent attainment of citizenship by merit. It was explained that the amendments aim to strengthen present laws relating to citizenship by merit and would emphasise the need for providing added value and job creation to the Maltese islands.
Trapping infringement proceedings
Passports were not the only issue over which Malta was in conflict with the European Commission this year.
The European Commission in November initiated infringement proceedings against Malta concerning the research derogation related to the seven species of wild finches.
A judgment delivered by the Court of Justice of the European Union in 2024 had resulted in amendments being made for Malta to comply with that ruling. But, the amendments were not enough for the Commission, and the Commission has now initiated proceedings against Malta.
"Despite (government) efforts, the Commission has decided to open fresh infringement proceedings as it questions whether Malta's derogation, as applied in the new legislative framework, genuinely fulfils a research purpose. The Maltese government takes note of this decision and remains committed to the ongoing constructive dialogue with the European Commission," the Maltese government said.
The government said it will continue to defend this research derogation, "ensuring compliance with EU law while protecting the cultural identity and long-standing traditions of the Maltese and Gozitan communities".
17 Black
Former chief-of-staff Keith Schembri, former Minister Konrad Mizzi and businessman Yorgen Fenech, among others, were charged with various criminal offences linked to the controversial Electrogas power station project in February.
Charges were filed against seven individuals and four companies, as Brian Tonna, Karl Cini, Paul Apap Bologna and Mario Pullicino also appeared in Court.
This comes following the conclusion of a criminal inquiry into allegations concerning illicit payments linked to 17 Black, owned by Fenech.
All accused pleaded not guilty to all charges brought against them.
Planning reforms
Information regarding the highly controversial planning reforms first became public in July, after two bills were tabled in Parliament.
The two bills in question are the Environment and Planning Review Tribunal Bill and the Development Planning (Amendment) Bill.
There have long been calls to halt the implementation of approved planning applications while they are under appeal. While the bills implement such a change, they also propose a number of legal measures which NGOs quickly flagged as being "disastrous" and expressed outrage. For instance, one point of contention in the bills regards the Court of Appeal, where as per the proposal, annulled cases would be re-sent to the Environment and Planning Review Tribunal. This point has been the source of controversy, with activists arguing that this will remove the court's power to revoke development permits. Another of the controversial points was that the bills also propose changes to the hierarchy of planning documents, where latest documents (approved plans, policies, etc.) override older ones regardless of position in hierarchy.
Moviment Graffitti had described the reforms as a "disaster for Malta's environment and democracy".
"These bills were introduced without any public consultation and without engaging NGOs. They effectively represent a developer's wish list, dismantling nearly all remaining legal safeguards," it said. Many other NGOs quickly condemned the bills.
The first government explanation regarding the reforms came days after they were tabled in Parliament.
Following public outcry, the government announced that a public consultation on the reforms would take place. Aside from the two bills forming part of the consultation, the proposed reforms also included legal notices, in which the government is proposing that illegal developments built prior to 1994 on land located Outside the Development Zone (ODZ), and illegal developments built before 2016 within the development zone, will become eligible for regularisation. They also proposed that illegal developments carried out up to 2024 be eligible for a concession.
The consultation closed on 7 September, and the government said that it received over 1,500 submissions.
Thousands of people took part in a national protest in October. The government has indicated that certain proposals in the reforms would be removed, and that the government is reviewing the submissions received in the consultation process, however NGOs continue to call for the outright revocation of the reforms and for the process to begin anew "with a comprehensive planning reform which has the well-being and quality of life of the Maltese and Gozitans at heart, with the protection of the environment as an essential prerequisite to this end".
School stabbing
A 14-year-old boy was taken to hospital after he was allegedly stabbed by a fellow student at St Clare's College in Pembroke at the beginning of December.
The incident took place early in the morning, before lessons began. Police said that both the accused and the victim were Libyan nationals who had been living in Malta since they were three.
A 14-year-old student has since been charged in court, pleading not guilty to attempted murder, causing grievous injury, carrying a weapon and keeping an explosive substance.
A police inspector told the court that they found the accused inside the school near a water dispenser, and that he still had a knife in his hand when the police approached him. Later, police found two containers of liquid, "a Molotov-like substance", in the accused's school bag.
The victim had suffered multiple stab wounds and was initially in danger of dying, but his condition improved.
In court, the defence team claimed the accused had been severely bullied for several months, "if not years", and had even self-harmed.
The Ministry for Education, Sport, Youth, Research and Innovation appointed an Advisory Board in light of the incident that occurred. The board's aims is to provide strategic and operational recommendations to the Ministry for Education, Sport, Youth, Research and Innovation regarding a Framework on Behaviour Management. It will ensure that all implementation is aligned with national legislation, educational standards, and the principles of student and educator well-being, in accordance with the National Education Strategy.
Gaza aid ship
In May, Freedom Flotilla reported that drones attacked one of its Gaza aid vessels in international waters off Malta.
A nearby tugboat responded to a distress call from the Conscience, which authorities said experienced a fire that was brought under control. The vessel was carrying 12 crew members and four civilians, the Maltese government said, adding that those aboard refused to leave the ship. The tug arrived on scene and began firefighting operations. By 1.28am, the fire was reported under control. An Armed Forces of Malta patrol vessel was also dispatched to provide further assistance.
The ship remained outside territorial waters. While the vessel requested entry to Malta, this had not been granted, however the crew and passengers of the vessel were offered entry, which they eventually took and were repatriated on outbound flights. The vessel itself had no flag or valid insurance policy, it was said.
Prime Minister Abela had said that Malta offered to carry out and pay for repairs to the aid ship, but only after a maritime surveyor would be allowed onboard to assess the damage to the vessel. The surveyor dispatched by the government described the damage as "minor" and the government offered to pay for repairs just as long as they were done at sea.
Eventually it was announced that the Conscience was to be towed to another port in the Mediterranean for repairs.
Steward arbitration decision
On Monday, 3 November, the government issued a statement saying that an international arbitration tribunal had rejected Steward Healthcare's claim that the government had unlawfully terminated the hospitals' concession agreement.
But it also said that the arbitration decision awards no damages to either side.
On Friday of that week, the government published the ruling itself, and according to the ICC award, the total benefits received by the Government of Malta stand at €889,434,091 while the benefits received by Steward Healthcare stand at €884,644,629, with a shortfall of €4.78 million owed to Steward Health Care.
Prime Minister Abela said Malta had paid Steward for services actually rendered, not for the upgrading of the hospitals. "For every euro paid to Steward, we received the required services," he said.
Meanwhile, the government was heavily criticised by the Nationalist Party. PN leader Borg lambasted the government for the outcome of the international arbitration tribunal case, saying that not only did Malta come away with nothing, but it has been asked to pay Steward another €5 million. Borg said that the decision had simply confirmed that the government had not managed to get back a single cent from the hospitals' deal, mentioning the lack of investment that had been made in the three hospitals.
Exchanges between the government and the Opposition ensued over the issue.
Manoel island, White Rocks and Fort Campbell
The government this year announced plans to create three major national parks.
The first was on Manoel Island. A petition had been circulated by citizens calling for Manoel Island to be turned into a park, which received thousands of signatures. The Prime Minister originally seemed unwilling to explore the possibility, saying that retaking the land would cost hundreds of millions, but then in June the message changed, and the Prime Minister said he wanted to return the land to the people. Midi, which holds the lease for the island, said that it is committed to continue to act in good faith to find a solution in order to implement the government's stated objective for Manoel Island to revert to the government.
The government has filed legal proceedings against the Midi consortium over the Manoel Island concession, which are still ongoing.
In an update later, Abela said: "We already got a clear and written commitment that the massive development that was planned for Manoel Island will not take place. Instead of development there will be a national family park. We are working to finalise the agreement so that this land would be returned to the people," he said.
Later in the year, Prime Minister Abela announced that the government will turn White Rocks into a national park. "We will be cancelling the public call that was issued for the development of this land, and instead we will give this land to the people in the form of an open and green park," he said about White Rocks.
The third and final announcement was about Fort Campbell. Fort Campbell will be restored and will become an open space for Maltese and Gozitan families, Abela said.
The government has invited the public to submit their ideas for the three parks.
HSBC
HSBC Malta had, in 2024, issued a statement announcing that HSBC Holdings plc (the majority shareholder) informed the board of directors that it will undertake a strategic review of its indirect 70.03% shareholding in the bank.
Speculation and reports regarding banks interested in taking over HSBC Malta began to emerge. But in August, it was announced that HSBC had chosen a Greek bank as its preferred bidder to take over its Malta branch.
"The bank has been informed by HSBC Holdings that it has identified a preferred bidder and has entered into exclusive discussions with CrediaBank S.A. (formerly known as Attica Bank) with regard to its majority shareholding in the bank. HSBC Holdings advised that no agreement has been reached yet and the strategic review remains ongoing," the company said. CrediaBank is Greece's fifth largest bank.
HSBC Malta said that the sale of 70.03% of its shareholding to CrediaBank would be for the price of €200 million. The bank later said that it has signed an acknowledgment of a put option agreement. The potential transaction is subject to an information and consultation process with HSBC Continental Europe (HBCE) employee works councils in France, in accordance with HBCE's obligations under French labour law, the company announcement read.
"If, following the finalisation of the information and consultation process, HBCE decides to proceed with the Potential Transaction, then, HBCE and CrediaBank will enter into a definitive agreement for the sale and purchase of HBCE's shareholding in the bank; and the Bank (HSBC Malta), HBCE and CrediaBank will enter into a cooperation agreement to govern their respective obligations in relation to the Potential Transaction."
Paceville building collapse
On 11 June, a building on Triq Paceville in St Julian's collapsed.
Thankfully, there were no injuries. The building was empty at the time of the collapse, with residents having been evacuated earlier in the day.
Before the collapse, an architect identified damage to the building that had not been present during a condition report conducted the previous November. The architect's report was submitted to the Building and Construction Authority on 9 June on behalf of his clients, understood to be owners of part of the collapsed property, and reportedly prompted the evacuation of residents, averting a tragedy.
The building in question was next door to a construction site. The Chamber of Architects had said that following its inspection of the building collapse site in Paceville, there was no evidence of excavation work having been conducted on the adjacent site.
In the wake of the collapse, St Julian's mayor Guido Dalli had urged authorities to take immediate action on development control, emergency preparedness, and infrastructure coordination.
Minister under fire
Towards the end of the year, Housing Minister Roderick Galdes came under fire over two issues.
Firstly, former Labour MEP Marlene Mizzi claimed that her 2024 removal from the chairmanship of Malita Investments plc occurred shortly after she confronted Housing Minister Galdes over what she described as improper interference in the company's affairs. Galdes quickly responded by saying "the company has its own managerial structure, and as minister my role has always been one of general political oversight, not operational intervention". Malita Investments' board of directors later said it "categorically refutes" any allegations that its decisions and actions were influenced by ministerial intervention.
Momentum leader Arnold Cassola had asked the Standards Commissioner to investigate Minister Galdes over the allegations that were made by former PL MEP Mizzi. PN MPs requested that the Auditor General investigate the Malita situation.
Separately, Galdes also came under fire regarding certain property transactions he had undertaken. Firstly, it was reported that Galdes purchased a penthouse and garage in Victoria, Gozo for a price of just €140,000. The minister had defended this acquisition, saying that he had "reserved" this price from its 2021 pre-construction phase. But the contract for this property was signed this year. Concerns were raised over the low price of the transaction.
It was later reported that Minister Galdes had also bartered a flat in Xagħra in return for a plot of land in Għarb from the same real estate company as his Victoria penthouse - Excel Investments Ltd. Excel Investments is a company owned by development giants Joseph Portelli, Mark Agius, and Daniel Refalo.
"While Galdes continues to prosper, our children and families struggle every day to afford their first home," the PN stated. "The two properties reported on by the media in recent days are just two from a much longer list of properties acquired by Galdes over the past years, including properties in Sicily and in the UK," the party said. The PN has called for Galdes to resign.
Former MP Jason Azzopardi filed a criminal complaint with the police commissioner regarding the minister's property deals, and Azzopardi said he expects the commissioner to request a magisterial inquiry.