Issue link: https://maltatoday.uberflip.com/i/1510993
12 maltatoday | SUNDAY • 5 NOVEMBER 2023 Miriam Dalli Miriam Dalli is Minister for the Environment, Energy and Enterprise OPINION IN these challenging times of global economic uncertainty and rising inflation, the path forward for governments has never been more critical. Traditionally, gov- ernments respond to such crises by introducing austerity meas- ures, cutting essential services. However, as a nation, we have chosen a different path that fo- cuses on unwavering support for our people and businesses. This choice has been possible due to the robust state of our economy and the prudent priorities we have set over the past decade. Consider the significant im- pact of our decisions: Energy cost savings: A measure that ensures growth In times of rising inflation, we are making a crucial decision that supports the most vul- nerable and provides the right impetus for a better quality of life and economic growth. We know that supporting consum- ers is paramount and cush- ioning energy costs is a very effective measure to alleviate financial burdens, particular- ly for an island state like ours that has to face additional chal- lenges when compared to other states that are part of mainland Europe. As shown by the fol- lowing examples, government aid in the form of energy sup- port eased the financial strain in the most challenging of times. For a two-person household, the annual energy consumption averages €403, reduced from €822 thanks to government assistance. This translates to more than 67,000 households across the country collectively saving €28 million in energy consumption. Without government aid, a family of three with an average annual energy consumption of around €526 would be pay- ing €1,044 per year. This is the case for around 50,000 families across the country, collectively saving an impressive €26 mil- lion in energy consumption. In the case of a family of four, the average annual consump- tion is of approximately €672 for electricity, as opposed to €1,275 if there was no govern- ment aid. This leads to over 36,000 families who collective- ly are saving a substantial €22 million in energy consumption annually. These savings on energy bills directly impact households' financial well-being, allowing them to allocate resources to other expenses like food, hous- ing, and education and other expenses that can boost quality of life and help our economy grow. They should also be consid- ered alongside other measures introduced for Budget 2024, including the increases to the children's allowance, the cost of living adjustment mecha- nism, increase in pensions, stu- dents' stipends, housing sup- port and more. Economic prosperity through support and innovation Moving away from measures of austerity and supporting our families and businesses is bearing fruit. It is why the Mal- tese economy has flourished and grown 10 times the Euro- pean average. We have cush- ioned the blow to the economy, which other countries are ex- periencing. A healthy economy has allowed the Labour Gov- ernment to implement support measures across the years. Eight years ago, energy bills were cut by a remarkable 25%. For businesses, this meant an annual saving of €50 mil- lion. This allowed businesses to breathe and invest in their growth, rather than being bur- dened by exorbitant energy costs. Then came the vital decision to keep electricity bills stable despite international oil price fluctuations. For all types of businesses across Malta and Gozo, this meant savings of €370 million between June 2021 and June 2023. Savings that helped protect jobs and are being reinvested in compa- nies. The energy support will con- tinue next year – an allocation of €340 million against the rise in electricity, fuel, and LPG prices. This financial buffer is a life- line for businesses and house- holds, enabling them to weath- er the inflation storm. This support-driven poli- cy has played a pivotal role in propelling our economy, with growth rates surpassing the Eu- ropean average. While in Ger- many, the growth of Gross Do- mestic Product could shrink, in Malta, it is growing. Our political decision is about preserving our business com- munity's resilience – this gov- ernment will never agree to a policy that creates instability. Most of us remember still the years when Budget Day meant cuts to social support, and in- creases in taxes and utility bills. We also recall the times when drivers had to queue up at fu- el stations to fill up their cars, fearing an imminent price hike in fuel prices. I look forward to an economy that creates quality employ- ment, one that is more knowl- edge-based and driven by the workforce's skills and we are working hard to achieve this. Malta Enterprise's collabora- tion with INDIS and ST Mi- croelectronics, for research and development projects is a prime example of this. We are committed to making Malta a research and innovation centre in the field of semiconductors and microchips. This means more investments, knowl- edge-based jobs, and opportu- nities for businesses and indi- viduals. Our path is one of resilience, growth, and unwavering sup- port for our people and busi- nesses, all based on the princi- ples that investing in our future and the quality of our work- force is the key to prosperity for all. In these challenging times, our choices show clearly our commitment to the well-being of our citizens and our deter- mination to build an econo- my that thrives. As we face the complex challenges of the global economy and rising in- flation, our approach has been clear: we choose support over austerity, investment over cutbacks, and innovation over stagnation. A budget for all