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BOTH of Malta's main political parties ended 2024 in the red. But beyond the headline deficits, the financial accounts of the Labour Party and the Nationalist Party suggest two different stories about debt and sustainability. At first glance, Labour's loss is the bigger one. In 2024, the PL recorded a deficit of around €1 million, while PN's deficit stood at €737,000. Yet, the na- ture of those losses matters more than their size. Labour's deficit was largely the result of a single, exceptional year of election spending—the local coun- cil and European election campaigns. The PN's, by contrast, reflects deep- er, long-standing structural problems linked to its subsidiaries and debt bur- den. Liquidity under pressure Debt levels highlight the contrast be- tween the two parties. At the end of 2024, Labour reported €7.2 million in liabilities, while PN's liabilities reached €11.7 million. These figures include both short- and medium-term obliga- tions, ranging from amounts due with- in the next year to loans repayable over several years. When looking only at short-term li- quidity, both parties appear stretched. PN held €1.4 million in current assets against €2.6 million in current liabilities, meaning it does not have enough read- ily available resources to cover debts falling due within a year. Labour shows a similar imbalance, with €1 million in current assets and €3 million in current liabilities. For PN, the situation is compounded by a deeper problem. Its accumulated fund is negative €9.85 million. The party has spent far more over time than it has earned. Its equity position is positive only because of property revaluation reserves, not because it has built up fi- nancial surpluses. Loans and interest a growing concern Both parties rely heavily on bank bor- rowing. PN has two main bank loans, one of which was settled during 2024. The remaining loan carries a monthly 8 maltatoday | SUNDAY • 21 DECEMBER 2025 ANALYSIS NICOLE MEILAK nmeilak@mediatoday.com.mt Debt by a thousand payments: What party The Labour Party overspent in an election year, while the Nationalist Party continues to wrestle with structural debt. MaltaToday takes a look beyond the headline deficits in the 2024 party accounts filed with the Electoral Commission Labour Party functionaries taking phone calls with donations made by supporters. In December 2025, the PL collected €1.1 million in a fundraising telethon. (Photo: PL) The nature of those losses matters more than their size. Labour's deficit was largely the result of a single, exceptional year of election spending— the local council and European election campaigns. The PN's, by contrast, reflects deeper, long-standing structural problems linked to its subsidiaries and debt burden