Many articles have been published about economic progress expected in the 2026 snap general election. Months ago, Opposition leader Alex Borg, predicted that a future PN in government would explore the idea of introducing a four-day workweek in the public service.

The Opposition party prefers to start a public sector pilot, then if successful introduce incentives for the private sector. They received both criticism and support for the proposal, which has since been notably absent from the PN's election campaign, but ADPD seems to be embracing a practical solution by chairperson Sandra Gauci and deputy chairperson Dr Melissa Bagley, to test a four-day workweek pilot scheme. They do not propose immediate legislation or a fixed model (example mandatory 32-hour week), but advocate starting a broad debate involving social partners, employers, unions, and the public. This fits ADPD's broader progressive platform: social justice, sustainability, solidarity, and moving beyond traditional left-right politics.

Improve work-life balance, especially for parents (linked to their parental leave proposals). If enacted, this will help address the gender wage gap and promote more equal sharing of family care responsibilities. ADPD's discussion-first approach may aim to build consensus and address these issues through dialogue.

The Labour party has a different focus and prefers the concept of a compressed week, that means same hours, but fewer days. The Malta Employers Association (MEA) supports compressed workweeks, that is, 40 hours over four longer days, where it suits individual businesses, as this maintains total labour input and costs while improving work-life balance.

The party Momentum, on the other hand, has no specific high-profile pledge on a four-day or compressed week, instead focusing on broader worker protections and measures aimed at improving work-life balance.

The MEA remains sceptical of a four-day workweek, warning of risks to competitiveness and productivity. The MEA is cautious and largely opposed to blanket or legislated reductions in working hours, including a true four-day week with fewer total hours (example 32 hours with full or pro-rata pay). They view it as risky for Malta's economy given acute labour shortages, high reliance on service sectors, demographic challenges (low birth rates), and competitiveness pressures.

In their opinion, a blanket approach could raise labour costs, reduce output, harm competitiveness, lead to job losses, or increase reliance on foreign workers. Employers in general are of the opinion that any meaningful reduction in hours must be linked to higher productivity (via technology, AI, skills, and digitalisation).

The general opinion by employers is that a four-day week must result in higher flexibility and contain compressed options on a case-by-case basis but strongly warns against this new concept without proven productivity gains. Proposals are still evolving as the short election campaign unfolds, and fuller details may emerge once parties publish their complete manifestos.

However, it is reasonable to predict that events and trends, which made the headlines this coming election, can help us foretell the events on the notion that some continuation occurs. As always, hard work matters. Integrity matters too, and as the election approaches, political parties must reaffirm that Malta's reputation as an island nation remains paramount. Mediocrity has no place in Malta's political strategy for the future. Meritocracy and credibility must remain the foundations of a strong economy and a trustworthy country. To us islanders, since Independence, there was nothing we could not aspire to achieve. Hindsight reminds us of a dream that drove the island by a tiny majority to join the European Union.

This helped immensely to transform our economy from a fortress economy to a modern state. Blessed with generous EU funds since 2004, these helped us to enjoy a higher standard of living and improve infrastructure. As a corollary to this benevolence, one cannot omit to mention State subsidies on energy and food prices.

Castille apologists remind us that Malta's economy remains resilient together with a vibrant labour market. Unemployment of 12,000 remains at a record low and well below European averages. But what is in store for a new government once elected? One may rejoice that in the advent of AI, and associated generative powers, these will give us a faster transformation in the industrial and professional sectors. Anthropic recently launched Mythos, aka Project Glasswing.

This is a defensive programme giving limited, vetted access to select organisations (tech giants, critical infrastructure providers) so they can use Mythos to find and fix vulnerabilities in their own systems before bad actors get similar tools. This has sparked global discussions on AI safety, cybersecurity preparedness, and the offence-defence balance in an era of powerful models. Mythos identified thousands of high-severity bugs across browsers, including decades-old flaws.

On the upside, AI has the potential to significantly enhance productivity even in our minuscule economy. This will increase our national income, on the other hand, the question that keeps coming up is whether it will disrupt the labour market to such an extent that jobs will be lost and they will not be readily replaced, thereby dumping the golden egg nest of licenced agencies who now recruit low paid labour from third countries. HR experts warn that it is unrealistic to upskill workforces quickly enough to meet the demand for new high-tech jobs created by the AI revolution.

As a result of the above-mentioned electoral promises, labour redeployment comes on a scale that involves changes in workforce demography, which one hopes will be addressed under the remit of the new migration law. But the fly in the ointment is whether the AI revolution will disrupt our recruitment drive. This may trim some desk-bound jobs, like working on Excel spreadsheets, accounting, the drafting of letters and reports, regular legal advice and standard correspondence. By 2035 (if not earlier) mundane office tasks and some teaching facilities may be replaced by the likes of AI bots.

This will reduce the staff headcount and hence the need to vacate desks. In recognition of the hard work by all employees, the PN (once elected) promised a €1,200 extra annual bonus.

In conclusion, ADPD has resisted a blanket approach towards a four-day workweek, yet it advocates that a discussion-first approach may aim to build consensus and address these issues through dialogue. 

George M. Mangion is a senior partner at PKF Malta