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NEWS
maltatoday | SUNDAY • 26 NOVEMBER 2023
very little about the need to re-
duce consumption. Not by re-
ducing the standard of living,
but measures to improve energy
efficiency."
Indeed, the blanket subsidy on
energy contradicts other efforts
to push for sustainable energy
sources and decarbonisation,
with Malta now subsidising car
and boating use by cushioning
the price of petrol and diesel.
But Charles Mangion, Labour's
former finance spokesperson
while in Opposition and until
recently a chairman of energy
utility Enemalta, says the fuel
subsidies are an important sta-
biliser that safeguards business-
es, consumers, and families. "I
think that, as long as the country
can tolerate it, those subsidies
should continue. Whether mod-
ification will be needed, only
time will tell."
Malta's real growth in 2024
could be 3.5%, among the high-
est growth rates in Europe, with
record low unemployment lev-
els, but with inflation expected
to remain above 2% till late 2025.
It is expected that the country
will still be reeling from wage
and inflationary pressures.
In turn, fiscal deficits in Malta
will see a small decline to 4.5%
in 2024, with energy subsidies
tagged at 1.75% of GDP – 40% of
gross domestic product.
subsidies must be wound down
Central Bank governor Edward Scicluna (above) last Friday joined the EC and the
IMF in saying that subsidies should be targeted and temporary
"…the power
of a key policy
tool that is
geared towards
dampening
demand
and hence
inflationary
pressures is
severely diluted
in Malta"
