Issue link: https://maltatoday.uberflip.com/i/1539233
MALTA'S economy continues to demonstrate resilience. The latest fig- ures published by the National Statistics Office show growth regaining momen- tum, unemployment staying low, and government finances broadly stable. These are positive signals, particularly when set against a European backdrop where many economies are still strug- gling to regain pre-pandemic dynamism. Yet the numbers also invite reflection on how Malta can sustain this performance in the years ahead. In the second quarter of 2025, Mal- ta's GDP rose to €6.1 billion, recovering from the slowdown earlier this year. This growth is supported by a combination of consumption and services. But as is of- ten the case in small, open economies, questions of sustainability matter as much as the headline numbers. Growth built on expanding inputs is different from growth driven by efficiency gains, and the long-term trajectory will depend on strengthening productivity alongside scale. The fiscal data for the first seven months of the year reflects this balance of strength and challenge. Recurrent revenue is higher than last year, but growth has been modest. At the same time, expenditure commitments remain significant, reflecting the rising demands of a growing population and the gov- ernment's investment priorities. While Malta's public finances remain in rel- atively good health, they highlight the need for careful stewardship to ensure that growth in spending is matched by resilient sources of revenue. Unemployment data provides anoth- er important angle. In March 2025, the total seasonally adjusted unemployment rate stood at 2.65%, one of the lowest in Europe. Youth unemployment has also fallen sharply, dropping from above 9% last summer to below 7% today. These are encouraging trends that underline the strength of Malta's labour market. At the same time, a deeper reading of the numbers suggests that job creation continues to rely heavily on population growth and foreign labour, which brings benefits but also creates pressures on housing, infrastructure, and services. The real test for the labour market will be to sustain low unemployment while also improving productivity and job quality. Taken together, the GDP, fiscal, and labour data point to an economy that is performing well but facing important choices. Growth is strong, employment is buoyant, and government finances are broadly stable. Yet the composition of growth, the balance between revenue and expenditure, and the drivers of em- ployment all raise questions about the model that will carry Malta forward over the next decade. The opportunity lies in building on today's strengths to prepare for tomor- row's challenges. Investing in skills, re- search, and technology can help Malta move further into higher-value sectors that offer more resilience and broader benefits. Developing strategies that bal- ance population growth with produc- tivity gains will ease fiscal pressures and strengthen household prosperity. Ensur- ing that fiscal and labour market policies support innovation and inclusion will make growth more sustainable. The latest numbers tell a positive sto- ry, but they also encourage us to look beyond the present. Malta's economic resilience is clear. The task ahead is to translate that resilience into long-term strength, ensuring that growth today be- comes prosperity tomorrow. 8 maltatoday | SUNDAY • 7 SEPTEMBER 2025 OPINION & LAW The law does not allow actions against companies in liquidation, in order for the liquidation to be carried out in an orderly manner. This was held by Judge Ian Spiteri Bailey on 1 Septem- ber 2025 in an application filed in the Civil Court (Commercial Section) by Official Receiver in terms of Article 222 in the Companies Act with regard to Meeting Point Malta Limit. The Official Receiver who is handling the liquidation of Meeting Point Malta Limited, asked the court to remove two general hypothecs registered against the company by Maltarama Limited, which is owed money. These general hypothecs followed court judgments delivered against Meeting Point Malta Limited. The Official Receiver asked the court to declare the hypothecs null and void. Maltarama Limited replied to the application arguing that it is not part of the liquidation proceedings. It also argued that the wrong procedure was used as a court case should have been instituted and not a simple application. It also argued that Article 222 was not applicable as it does not empower the court to cancel hypothecs. The Court then analysed Article 222 of the Companies Act, which reads: "When a company is being wound up by the court, any act or warrant, whether precautionary or executive, other than a warrant of prohibitory injunction, issued or carried into effect against the company after the date of its deemed dissolution, shall be void." Referring to the case, VAT Commis- sioner vs Rees Furniture Company Limited, where Article 222 was made use of for a judicial letter that was de- clared null and void, the judge held that since the general hypothecs were derived from a judgment, then it fell within the ambit of the law and Article 222 did apply. Then the court analysed Article 2011(1) of the Civil Code which states that a hypothec is registered on the property of a debtor in order to execute an obligation. This is the reason why two hypothecs were registered against Meeting Point Malta. They were regis- tered during the liquidation in order to satisfy the debt it has with Maltarama. Article 2016 of the Civil Code dictates that the general hypothec is limited to the debt of the company. The debtor may ask for the general hypothec to be removed. The Court further reasoned that Ar- ticle 222 of the Companies Act, can be applied in conjunction with Arti- cle 224(2) of the same Act. A compa- ny is liquidated on a particular date and in this case Meeting Point Malta was liquidated on 25 June 2024. These provisions of the law are called judi- cial shielding provisions, intended to make inoperative all agreements which would give unfair preference to par- ticular creditors. The law gave discre- tion to the court to regulate the actions against companies facing liquidation. The Court quoted from two British authors, Ian Fletcher in his book The Law of Insolvency and Boyle & Birds in their book Company Law, that a liqui- dation of a company should be carried out in an orderly manner to benefit all interested parties to the liquidation proceedings. The Court then moved to declare the two general hypothecs null and void. MALCOLM MIFSUD Mifsud & Mifsud Advocates Law protects all interested parties in liquidation proceedings JP Fabri Growth, stability and the questions that follow Economist Maltarama Limited replied to the application arguing that it is not part of the liquidation proceedings. It also argued that the wrong procedure was used as a court case should have been instituted and not a simple application.