While informing the Parliament on Monday about his recent European Council meeting at the end of last week, Prime Minister Robert Abela stated that this year’s annual budget – which is scheduled to take place next week on Monday, 26 October – will spread one message: “that we will keep providing peace of mind, direction, and investment in our people.”

Hinting on what people can expect next week, Prime Minister Abela shared that pensioners can expect more money to remain in their pockets with measures awaiting to be announced in Budget 2027.

Abela was giving a rundown on what was discussed among the leaders of the EU-27 in last week’s summit when he said Malta’s “strong” energy and fuel policies should be appreciated more, especially for such a small country.

He told Parliament on Monday that other European leaders asked him how Malta is keeping financially afloat with its energy subsidies that froze energy and fuel prices in 2022. Abela told the Chamber that he stressed that economic burdens must not fall on the shoulders of families and small businesses in response.

He noted that his government decreased fuel price by €0.07 and froze electricity price while still retaining a stable economy, economic growth, and positive job creation rates.

The Prime Minister added that in Monday’s annual budget, value-added tax (VAT) will remain untouched and social security contributions will not be increased.

He also rejected Opposition criticism that Malta’s economic model is based on population growth, stating that he “cannot accept” this argument.

On the subject of national finances, PM Abela mentioned that EU support for Ukraine in its war against Russia was among the several agenda points discussed last week between Europe’s leaders.

While reiterating Malta’s support for Ukraine’s territorial sovereignty and confirming that Malta is in favour of providing Ukraine with more financial support, Abela said that he cannot help but have questions with the EU already providing Ukraine with €160 billion in support since Russia’s invasion in 2022. He noted that another €70 billion is expected to go to Ukraine, financed by EU citizens, even after Slovakia and Hungary have opted out of providing Ukraine with this financial assistance.

Other themes discussed during this European Council meeting were the EU’s competitiveness, energy prices, the European Union’s long-term budget (2028-2034), the situation in the Middle East, the EU’s cohesion policy, and immigration.

In some comments towards the Opposition leader, Prime Minister Abela told PN leader Alex Borg to reign in MEPs David Casa and Peter Agius to stop damaging Malta’s reputation as Maltese officials stationed abroad. He appealed for all Maltese representatives abroad to be a united front ready to defend the nation, rather than be focused on “attacking ourselves to win political points.”

Opposition leader Alex Borg stated that Malta must be ready to influence the EU’s decisions, not simply be present when they are taken.

The PN leader said that in order for Malta to maximise the potential behind the EU’s long-term budget (2028-2034), while it is currently being discussed, he extended a hand of cooperation to the Prime Minister, remarking “I will not wait until the PN is in government, I expect every financial package to be better than the one before.” He told PM Abela that he is ready to work alongside him to help Malta gain the best financial package it can out of these negotiations.

Borg said he hopes for Malta’s economy to be measured not by its growth, but ultimately by how much money remains in people’s pockets.

In response, PM Abela noted that energy and fuel subsidies have meant at least €2,000 remaining in people’s pockets since their introduction four years ago. On this, he criticised that the PN has no single position on national energy subsidies, commenting that “not even Belgium has as many coalitions as the PN does.”

Borg appealed for the Maltese government to assist local businesses “as much as possible,” so that local consumers do not suffer economic burdens. He said that many families are not keeping up with the increasing cost of living, that there are Maltese youths out there who cannot buy a home for a reasonable price, and that some senior citizens are on the verge of poverty as their pensions are barely financing them for a whole month.

“We mention nice statistics, and unfortunately, these people are being swept under the rug, but we must assist these people,” he said.

On energy in Malta, Borg reiterated the need for Malta to invest heavier in renewable energy for both environmental reasons as well as to bolster energy security. He said that Malta’s frequent power cuts affect the country’s attractiveness for foreign investment, though unfortunately, guaranteed energy provision has become a “luxury” in the Maltese islands.