Issue link: https://maltatoday.uberflip.com/i/1511791
ent Malta' must have been like, to actually live in… but like Herbert Ganado before me: I, too, have seen this country 'change' in other ways, since then. And one aspect that has consist- ently struck me, in all the changes I have ever witnessed, is this: most often, it tends to be the apparently 'trivial', 'minor' incidents, that end up ushering in all the truly 'major milestones' of historical progress. In Ruzar Briffa's time, it might have been a rousing spontaneous rendition of the 'Innu Malti', in defiance of a contemptuous Brit- ish Governor. Today, it might be a small, spontaneous protest, in Mosta's Rotunda Square, against the removal of a handful of Ficus trees… Consider, for instance, how one activist (Marie-Claire Gatt) de- scribed the aims of last week's 'Mosta Trees' protest, when ad- dressing the crowd at Rotunda square: "We do not want a paternalistic political class, where justice is on- ly served by political intervention as though they are doing the pub- lic a favour. We demand author- ities that prioritise public welfare and environmental protection, re- sisting the whims of those wield- ing power…" Later, a press release would add: "[This issue] highlights a trou- bling scenario where the public must oversee authorities to en- sure that common sense prevails. It is also reflective of a political system that enforces the idea that politicians need to intervene to serve justice when they feel their popularity is at stake." Already, then, it can be seen that those protests were NOT, in ac- tual fact, only about the removal of those individual Ficus trees, themselves. As the Malta Cham- ber of Psychologists explained, far better than I ever could: "Trees are a home for nature, and a daily connection with nature is critical for our mental well-being." In other words: those people were protesting against the dam- age that had been caused, not just 'to the trees'; but also… 'TO THEMSELVES!' Now: I've left myself with too lit- tle space, to illustrate just why that sentiment may amount to a truly historical milestone, in the way people view politics in this coun- try. Something tells me, however, that Maltese politicians will have received a very clear, very power- ful message, from those words. To their ears, it will have sound- ed a lot like: "We, the people of Malta (or enough of us, anyway) have finally seen through all the games that politicians play; we've finally had enough, of a 'paternal- istic political class' that has only ever betrayed our interests…"; and it all points in one direction; and one direction only. As a certain Oxford philology professor might have put it (you'll never guess who I'm 'Tolkien' about): 'The Tree-Huggers of Malta are going to wake up, and find out that they are STRONG!' And if that's not a milestone his- torical moment, for Ruzar Brif- fa to write a poem about: I don't know what is, quite frankly… ON the morning following the budget, the Opposition swiftly reverted to their usual post-budget narrative, claiming yet again a disregard for the middle class. However, the essence of what consti- tutes the middle class, according to their perspective, is becoming increasingly nebulous. This is particularly evident as Budget 2024 incorporates measures that affect a broad swath of individuals on the island. The assertion that Malta and Gozo's middle class remains unaffected by the assistance on fuel – given the prices in Malta are a third below the EU average – seems quite implausible. Similarly, it's hard to believe that there are middle class families not reaping the benefits from the comparably low energy prices in Malta, which are about half the EU average. During his address, the finance minister provided conservative esti- mates demonstrating that a two-earn- er household with two children would save €672 on their energy bill and €468 on petrol per car driver, courtesy of these subsidies. Moreover, it's challenging to argue that measures like the increase in chil- dren's allowance by €250 per child won't benefit middle class families. The same holds for the introduction of a €500 per year allowance to par- ents whose children pursue education beyond the obligatory age. Aren't most middle class families likely to benefit from this measure? Additionally, families will see a €50 per child increase in their in-work ben- efit. While it may be contended that this benefit targets low-income earners, this might have been the case initially, but the scope has since broadened sig- nificantly. Now, a single parent or a couple with one earner, with a salary of up to €35,000, is eligible for this benefit. When both parents are employed, they also qualify if their combined earnings are up to €50,000. Given the average wage is €22,000, these thresholds en- compass a large portion of the middle class. To address the elephant in the room: the supplementary mechanism against inflation, also known as the additional COLA. Initially aimed at low-income households, the eligibility for this ben- efit has expanded to include nearly half the families in Malta. A family with two children earning €38,000, a couple with one child, or a single parent with two children having an income of €32,500, all now qualify. Once more, these households are not low-income, but rather reside within the middle deciles of the income distribution. Let's delve into three practical exam- ples: A two-earner household with an in- come of €38,000 and two school-age children will see their in-work bene- fit rise from €460 to €560, and chil- dren's allowance increase from €900 to €1,400. Additionally, they will receive an inflation benefit of €360. From just these three budget measures, this mid- dle-class family will gain €960. Consider another two-earner house- hold, including a full-timer earning a wage that is one and a half times the av- erage salary, and a part-timer earning half the average wage, with three chil- dren. This household is eligible for an in-work benefit of €600, rising to €750 next year, and a children's allowance of €1,350, increasing to €2,100 next year. They also qualify for an additional in- flation mechanism payment of €450, leading to a net gain from the budget of €1,350. Consider a family with one earner on a salary of €45,000 and two young adults still living at home. While ineligible for the in-work benefit or the children's al- lowance, this household will receive an additional inflation payment of €360. So, were there any middle-class groups left untouched by the budget? Individu- als living alone or couples without chil- dren might not receive child-related benefits, yet they still benefit from en- ergy and fuel assistance. First-time buy- ers utilising a mortgage gain from the first-time buyer scheme and a €1,000 annual grant. If their purchase was in a UCA, they receive €15,000, or €40,000 if the property is in Gozo. Alternatively, if they choose to rent and their income doesn't exceed €33,000, their rent sub- sidy will increase from €5,000 to €6,000. While this budget heralds numerous improvements in social security bene- fits for low-income individuals, along- side a significant rise in the minimum wage, it also offers substantial advan- tages to those in the middle income brackets, especially those supporting children in full-time, post-secondary education. Instead of burdening the middle class with higher energy and fu- el costs, the government is augmenting their purchasing power. This strategy is a primary driver behind the ongoing progress of Malta's economy, even as larger economies, like Germany's, ex- perience setbacks. maltatoday | SUNDAY • 19 NOVEMBER 2023 OPINION 11 Daniel Attard is a Labour Party candidate for the European Parliament election A budget not for the middle class? Daniel Attard