Issue link: https://maltatoday.uberflip.com/i/1530962
3 maltatoday | SUNDAY • 29 DECEMBER 2024 2025 LOOKING FORWARD Disruption be more problematic, consid- ering that the EU's two largest powerhouses – Germany and France – are facing internal po- litical instability. Stable Malta These global headwinds could impact Malta as an EU member state with a very open econo- my. Although the Central Bank of Malta's forecast earlier this month revised economic growth upwards to 3.9% in 2025, it not- ed that the downside risks largely emanate from possible adverse trade effects related to geopolitical tensions, higher US tariffs, and the possibility of retaliatory measures. Nonetheless, Malta's headline figures remain largely attractive, with the CBM forecasting annu- al inflation at 2.2%, unemploy- ment at 3.2%, a deficit dropping to 3.5%, and a government debt ratio of 50.2% in 2025. The debt level is such that it allows the Maltese government significant leeway to leverage the economy if global trade is disrupt- ed by Trumpian tariffs or war. The winds of change On the energy front, Malta will continue to be dependent on fossil fuels, but the government will kick off the process of dis- rupting the traditional energy sector. In 2025, the process to invest in floating offshore wind farms will step up. The govern- ment will be expecting feedback from companies for the "design, construction, operation, mainte- nance, and decommissioning" of a floating wind farm situated 12 nautical miles away from shore. The government wants to pro- duce around 300MW of ener- gy from floating wind turbines and is willing to grant a 35-year concession in areas that lie with- in Malta's Exclusive Economic Zone. It will be some years before Malta gets its first wind tur- bines, but in 2025, the tender for the first battery energy storage units – at Delimara and Marsa – issued by Interconnect Malta, a government company, will be adjudicated. These units, with a combined minimum capabili- ty of providing 84MWh, will be crucial in the transition towards renewable energy since they help overcome the problem of inter- mittency. With the government keeping energy subsidies intact, Maltese consumers will continue pay- ing among the lowest electricity prices in Europe in 2025. How- ever, the indiscriminate nature of the assistance will also leave Maltese consumers oblivious to the need to make judicious use of electricity and invest more in energy-efficient processes and machinery. It also makes it po- litically harder to reduce or with- draw subsidies when they are no longer necessary. Political disruption The most exciting develop- ments are likely to occur on the political front, with two new po- litical parties aiming to disrupt the Labour-Nationalist duopoly. Arnold Cassola has pitched his tent in the middle, and 2025 will see the formal launch of his party. Cassola has already been hobnobbing with European cen- trists like French Prime Minister François Bayrou in what is like- ly to be an appeal to moderate, middle-of-the-road voters. The other political outfit is Partit Malta Progressiva (PMP), which is the brainchild of former Labour MEP Cyrus Engerer and former policymaker in Helena Dalli's European Commission cabinet, Silvan Agius. The party aims to position itself on the left of the political spectrum, trying to capture the progressive zeal that characterised the Labour Party between 2013 and 2020. If these two new formations have functioning structures, the political scene may experience some interesting twists and turns in 2025. For the two traditional big par- ties, 2025 will be a waiting game, a time when they will observe the potential impact of the new parties and start sharpening their knives before starting their elec- toral engines in 2026. Nonetheless, several factors beyond the control of the polit- ical parties could have a direct impact on the political arena in 2025. The long-awaited Yorgen Fenech trial is likely to take place in the new year, and this could be a disruptor, given the strong political undertones that char- acterised the murder of Daphne Caruana Galizia. The trial could reopen certain wounds for the PL, as could the impending arraignment of Keith Schembri over accusations that he breached the Official Secrets Act when he allegedly divulged sensitive information from the Caruana Galizia murder police investigation to third parties. Disruption can be unsettling because of the uncertainty it cre- ates, but it can also be positive, as it presents opportunities for innovation and change. The new year will be a test of resilience on several fronts for the traditional political parties, Malta, the EU, and the world. MIriam Dalli said that in 2025, government will step up the process to invest in floating offshore wind farms Arnold Cassola will formally launch his party in 2025 Donald Trump will use his second term in office to secure his legacy