An assessment by the World Bank prepared for the European Commission's Directorate-General for European Civil Protection and Humanitarian Aid Operations (DG ECHO) concludes that Malta's critical infrastructure is too centralised, making it vulnerable to cascading failures. Whether it is electricity generation, water supply, or transport networks, they all have limited redundancy, so that even moderate damage could trigger nationwide disruption affecting households, businesses, and essential services.

The report lists the country's reliance on a single major hospital, the absence of enforceable seismic and fire safety building codes, several weaknesses in the emergency response system, limited surge capacity for specialist treatment (particularly for burn victims in the event of large industrial fires), and the lack of legally enforceable seismic and fire safety codes, among others.

These shortcomings could result in "disproportionate national impacts" if the country were struck by a severe natural or technological disaster.  The World Bank warns that this concentration of critical infrastructure leaves the economy particularly exposed. Tourism, financial services, and logistics   ̶   all key pillars of economic growth   ̶   are especially vulnerable to coastal damage, transport disruptions and failures in energy or water supply.

The report draws attention to what it describes as "points of failure."  In some cases, the government and its entities (including the Civil Protection Department) have developed codes but never formally adopted them, leaving authorities without the legal powers to enforce them. Other resilience measures have been omitted from some critical government control rooms during construction because of cost considerations. Another example is that facilities intended to coordinate emergency response during an earthquake could themselves ironically become inoperable during one.

In another part of the report, the World Bank says that Industrial hazards present another concern.  The country's concentration of ports, fuel storage facilities, and industrial installations increases the risk posed by major fires and hazardous material incidents. The assessment even questions whether current stocks of firefighting foam would be sufficient to tackle a large oil storage tank fire.

Equally worrying is the finding that the lack of preparedness for low-frequency but high-impact events could prove dangerous as climate change increases risks across the Mediterranean.  Malta also lacks a permanent National Emergency Operations Centre bringing together all emergency agencies under one roof. Additionally, legislation has failed to keep pace with modern disaster management, the report argues.

Malta, like the rest of Europe, faces substantial losses and destruction from climate-related disasters as the climate warms faster than in any other region in the world.  In 2025, disasters across Europe totalled some €43 billion. The cost of damage from climate extremes has doubled over the last decade.  Under a 3°C warming scenario, economic losses are projected to increase to around €175 billion, or 1.38% of EU GDP.

Storm Helios (2023) and Storm Harry (2026), which caused widespread flooding, property destruction, and infrastructure damage, cost the Government at least €130m and private households €13.8m in insured losses.  Researchers from the European Central Bank and the University of Mannheim have projected that extreme weather in Malta will cause damages estimated to reach upwards of €600 million, or almost 3% of economic output.  By 2029, the long-term economic damage is projected to cost over €1,000 per person.

The Government must start adopting the recommendations made by the World Bank and develop a phased programme of reforms over the next few years.  This programme should try to take maximum advantage of the aid available from the EU Civil Protection Mechanism, rescEU, and the EU's Solidarity Fund.

Up and up, we go

The number of aircraft registered in Malta has rocketed by around 3,300%, from just 26 in 2000 to close to 1,000 today, according to Aviation Malta, a Maltese aviation sector guide.  Aviation Malta co-founder Melissa Lamb says the increase "speaks not only to Malta's growth as an aviation hub, but to the confidence international operators place in our regulatory framework and people."

At a recent breakfast meeting, BOV Bank CEO Kenneth Farrugia highlighted BOV's role in supporting the aviation industry.  I remember that BOV was the first Maltese bank to participate in the financing of Air Malta's new B737-300 aircraft in the 1990s, as part of an international consortium.  Regrettably, the Bank did not pursue that line of business in subsequent years, even though aircraft are one of the most mobile and value-retaining assets in the world.

Air Malta itself was instrumental in developing not just transport communications between Malta and other countries, but in launching aviation-related activities.  It was the national airline which got Lufthansa interested in setting up a maintenance base in Malta, and this was then supported by Government aid. The German airline's facility has expanded over the years and employs hundreds of Maltese technicians.

Having been forced to set up a Shannon-registered aircraft leasing company due to the lack of proper legislation in Malta, Air Malta spend several years pushing the idea of emulating Ireland in developing aircraft registration and leasing here

Eventually, in 2010 Air Malta and other stakeholders prepared amendments to the Aircraft Registration Act in an effort to make the Maltese flag more attractive to aircraft owners. These included the adoption of the International Cape Town Convention as a way for aircraft owners to have better protection of their assets.  That was the beginning of the aircraft registration business in the country.

In 2020, the government amended various other pieces of legislation to position the country as a primary European aviation hub alongside Ireland. The strategy was to leverage Malta's competitive tax system, strategic EU location, and existing aviation cluster to attract financial leasing companies.

The Malta Financial Services Authority has now devised a dedicated, light-touch regulatory framework for aircraft financial leasing companies. This is an important opportunity to support continued growth, and to strengthen and innovate Malta's aviation ecosystem.

It was good to hear recently that BOV is working with such banks as Citibank, Lloyds, and UBS to improve its capacity to support cross-border transactions, which are essential to the aviation sector.  The lack of local aircraft financing facilities has been a negative in our offer so far.

We still have work to do.  To compete properly with Ireland, we need to have the soft infrastructure that the Green Tiger has in support of its leasing companies.  I'm talking of having a pool of highly qualified contract managers, aircraft managers, inspectors, accountants, and regulatory compliance experts.  We already have some, but all too few.  These are jobs that are highly paid.  If we cannot find enough local professionals, then we must provide the incentives for foreign ones to come here.

Digital detox

Screen addition is a modern-day plague. In recent years, dozens of companies have started selling products that allegedly cure the addiction. There are gadgets that will lock you out of your mobile device, and subscriptions that will swap your smartphone for a flip phone.  Young people are increasingly using these types of friction-inducing tools to pull away from technology.  Three out of every five Gen Z say they are intentionally trying to disconnect from their devices.

Meanwhile, New York was the venue for the "Summer of Ludd," an anti-smartphone festival where there was no Instagram, TikTok or website, and adverts were on "wheatpasted monochrome posters."  Absolutely no phones, recording, or photos were allowed.  The organisers wanted to promote a gentle longing for analogue fun - reading big books, dreaming, making things, being silly.

It seems that what one might call a neo-luddite movement is gathering impetus. Examples of this include gen Z prioritising In Real Life (IRL) socialising, "going 90s," and adopting offline, old-fashioned hobbies.

The movement is also inspired by a strong strand of techno-pessimism - a feeling that we are teetering on the brink of AI-engineered oblivion.  The new Luddites believe that smartphones and social media are tools of oppression and surveillance, and that tech companies are engaged in "systematic fracking of human beings."  I am not sure that we are round the corner from extinction, but it's increasingly evident they're right about the rest.

After all, the negative effects of excessive screen time are becoming clearer every day. Dr Kostadin Kushlev, associate professor of psychology at Georgetown University, says that too much screen time can lead to negative mental health outcomes and take time away from more important activities, such as exercise, social encounters, and hobbies.

In an experiment involving 500 students, Dr Kushlev found that digital detoxes positively affect well-being and mental health, as measured by established indicators such as positive emotions, negative emotions and symptoms of anxiety and depression. Participants halved their average screen time to about two-and-a-half hours.

The improvements were similar to what one sees with established treatments like cognitive-behavioural therapy, and larger than the typical effect of antidepressants in clinical trials.  People not only felt better but their anxiety and stress decreased. Moreover, participants also slept 20 minutes more per night on average after they detoxed.

In Malta, social media and mobile phone addiction is high, particularly among youth. International research ranks Maltese teenagers second out of 44 countries for problematic social media use.  An HSBC study revealed that almost 28% of 13-year-old girls show addiction-like behaviours.

An ESPAD 2024 European survey found that 47% of Maltese students aged 15 to 16 scored in the "risky use" category for social media. This indicates that their online habits are beginning to interfere with daily life, school performance, or mood.  The data also shows a clear gender difference, with 54% of girls and 41% of boys reporting high perceived risk.

Meanwhile, the Government continues to procrastinate on legislation to control social media and mobile use among the very youngest.

Quote of the week

"The way I see it, if you want the rainbow, you gotta put up with the rain."  Dolly Parton, the legendary singer and song-writer, who died last week aged 80.