Issue link: https://maltatoday.uberflip.com/i/1541988
THE standard of living of a nation is often measured by its economic per- formance, particularly employment rates. In Malta, even the harshest crit- ics acknowledge that the government's record on these metrics has been out- standing. Year after year, Malta ranks among the best-performing countries in the EU. Yet, true to its social justice principles, this government does not rest on these achievements alone. Instead, it remains committed to translating economic wealth into policies and programmes that deliver justice and prosperity for all. The 2026 budget is a clear and a tangible demonstration that real im- provements in the lives of working fam- ilies and vulnerable groups remain the government's foremost performance measure. This year's budget allocates approxi- mately €2.6 billion to social investments and benefits, an all-time record invest- ment. It represents more than a quarter of total government expenditure and an increase of €157 million over 2025. The contrast with the Opposition's last budget in 2012 is indeed stark. Back then, the only measures offered were a cost-of-living adjustment and a limited increase in children's allowances, ex- cluding the lowest-income households. At that time, unemployment had soared to 8,000, while 102,000 people were at risk of poverty and 42,000 classified as severely deprived. Faced with this precarious situation, the Labour administration embarked on an ambitious programme to lift those at the lower strata of society from the risk of poverty and accelerating so- cial mobility. Over the past decade, this government introduced a wide range of incentives, including free childcare, substantial increases in children's al- lowances, and improved retirement pensions. These measures have already delivered €708 million directly into the pockets of Maltese families. The results speak for themselves: Full employment, the lowest unemployment rate in the EU, a 63% reduction in peo- ple on social benefits, and a consider- able fall in the share of the population at risk of poverty—from 24.6% to 19.8%. Severe deprivation now affects only 4% of the population, among the lowest rates in the EU. Budget 2026 continues this trajectory, sending a clear message of solidarity, while acknowledging that the work is still ongoing. Key measures include a €160 million reduction in the tax burden, easing the strain of home loans and boosting disposable income for families. This is expected to have a positive impact on Malta's declining fertility rate, sup- ported further by a €2,000 bonus for families welcoming a third child. Chil- dren's allowances will rise between an average of €250 to €417 per child, with the highest rate payable increasing by 76% to €2,239 over six years. Pension- ers will yet again see their disposable income grow steadily. Malta's strong economy has enabled the government to provide families with the financial support and opportu- nities they need to avoid hardship and invest in their future. By expanding ac- cess to finance, education, and employ- ment, the government has empowered low-income households as well as the whole working class to improve their socio-economic status. Today, Malta boasts one of the lowest rates of work- ers earning a minimum wage in the EU. These social measures are not simply about putting money in people's pock- ets. They are rooted in the government's socialist conviction that everyone de- serves a genuine chance to succeed in life. Access to finance, education, train- ing, healthcare, housing, pensions, and social assistance when needed are the pillars of this vision. As the media has noted, the clear winner in this budget is the Maltese family. A maintenance order is still valid, al- though separation proceedings were not instituted within two months from the end of mediation. This was held in AB vs CD, by the First Hall of the Civil Court presided by Judge Joanne Vella Cuschie- ri. This partial judgment was delivered on 27 November 2025. The case concerned CD's (the de- fendant) alleged failure to pay medical and educational expenses of his two daughters following a decree of main- tenance issued by the family court in October 2019. The claim totalled over €37,000. The defendant rebutted that the sworn application was null because it was not signed by a lawyer. Further- more, he argued that the decree of October 2019 did not hold any longer because it was not followed by a court case. The defendant contested the claims since he always contributed to the maintenance and medical and edu- cational expenses of his daughters. The court limited its decision to the first two pleas. As to the first plea—the sworn ap- plication was not signed—Article 178 of the Code of Organisation and Civil Procedure (COCP) states that acts and sworn applications must be signed by a lawyer. AB's (the plaintiff) lawyer then filed an application in terms of Article 175 of COCP to remedy this. The court analysed whether the lack of a signa- ture rendered the sworn application null and void. It applied Article 789(1) (c) of the COCP which lists when acts are null and void. The plea of nullity may only be raised if there is formal breach of legal requirements or where the breach will prejudice the other par- ty. The principle applied by law is that the acts must be upheld or saved as long no law is breached in the process. The COCP states that not every vio- lation of form, should bring the nullity of law. However, the defendant failed to bring attention to the court how this prejudiced him. The court recognised that this was a mistake. With or with- out the signature the defendant was notified and he also replied to the acts of the case. The Court rejected this plea. The court then moved to analyse the second plea, which argued that the decree issued by the Family Court in 2019 was no longer applicable because mediation was not followed by a sep- aration case. The separation case was eventually initiated in 2021 by the de- fendant. In November 2019, the Family Court ordered CD to pay AB €400 a month for both his children. He was also or- dered to pay half the medical and edu- cational expenses with effect from Oc- tober 2019. In December 2022 the CD was ordered to pay AB €250 a month plus medical and educational expens- es. Article 37 of the Civil Code states: "(3) The court shall summarily hear the applicant and the respondent and shall then, by decree, decide on the demand: Provided that the court may decide on the demand where the applicant or the respondent or both the applicant and the respondent fail to appear on the day of the hearing." According to Sub-article 5 of Article 37 of the Civil Code, the decree is not valid if an action is not instituted with- in two months from the date of the de- cree. This does not mean that an order of the court will be declared null and void. A decree issued under Article 37(2) of the Civil Court is an executive title and may be enforced like any other executive title. Furthermore, it was CD who instituted an action for separation and therefore, the spirit of the law was to avoid double actions. Therefore, the court ruled that the decree during the mediation process remains in force. Subsequently, the court rejected the second plea as well. 8 maltatoday | SUNDAY • 14 DECEMBER 2025 OPINION & LAW A decree during mediation remains valid despite no action instituted within stipulated time A template for social justice and prosperity Michael Falzon Social policy minister The court recognised that this was a mistake. With or without the signature the defendant was notified and he also replied to the acts of the case Over the past decade, this government introduced a wide range of incentives, including free childcare, substantial increases in children's allowances, and improved retirement pensions MALCOLM MIFSUD Mifsud & Mifsud Advocates