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MALTATODAY 3 MAY 2026

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7 maltatoday | SUNDAY • 3 MAY 2026 ELECTION 2026 ANALYSIS spending contest unleashed uncertainty triggered by the Iran war has already degenerated into a full-scale circus of generous proposals. on the performance of a tiger economy. The proposals, which range from a commitment to increase pensions by €50 a week over a legislature to a €5,000 birth bonus and expanded parental leave, are paired with housing incentives and youth-focused tax relief. The extension of maternity and paternity leave, alongside six months of shared paren- tal leave, reflects an emphasis on work-life balance, while Gozo-specific measures—such as free ferry travel for foot passengers and infrastructure investment—aim to address re- gional disparities. However, the design of these measures reveals certain limi- tations. While paternity leave is more than doubled, the broad- er parental leave framework re- mains gender-neutral in theory but not necessarily in practice. By leaving allocation entirely to the discretion of families, it risks reinforcing existing social norms, where women dispro- portionately shoulder caregiv- ing responsibilities. Without stronger incentives for fathers to take leave, the reform may fall short of promoting genuine equality. Labour's housing proposals, including a 25% government loan for first-time buyers and additional family incentives, aim to address affordability but risk repeating past patterns in which increased demand sup- port feeds into higher property prices. While full official costing documents for the entire 2026 manifesto are still pending publication, Abela has pledged that Labour's programme will be fully costed and accompa- nied by a "well-being index" to measure its social impact. Preliminary figures, howev- er, provide an indication of scale. The proposed pension increase—€50 per week over five years—represents a com- mitment exceeding €1 billion in additional expenditure over the period, making it one of the most significant long-term fis- cal measures in the package. Social policy commitments, including the €5,000 per child birth and adoption bonus, pa- rental leave extensions, and related family supports, are estimated to cost around €120 million. Gozo infrastructure projects, including transport improve- ments and the proposed in- terconnector, are budgeted at €45 million. Meanwhile, tax reductions targeted at families are projected to leave approx- imately €160 million in dispos- able income over three years. Taken together, these commit- ments reinforce Labour's focus on household income support but also underline the cumula- tive fiscal weight of continued expansionary policy. PN PROPOSALS The Nationalist Party has fo- cused its early campaign on healthcare with several capital projects intended to extend coverage across both islands with partly costed proposals. • Healthcare infrastructure: Pledges to build a new hos- pital in the North of Malta, a new hospital in Gozo, and an expansion of Mater Dei and turning the Paola Hub into a fully-fledged hospital. • A National Health Village / Healthcare Park: Proposed to be located at the site of the former Selmun Palace Hotel in Mellieħa this will consist of a dedicated 60-bed facility designed to bridge the gap be- tween hospital care and recov- ery. • Cancer care: All cancer medications to be provided free of charge. • Student stipends: An overall 25% increase in stipends for all students. • Healthcare students: Sti- pends for health-related cours- es to be raised to the level of the minimum wage at €1,000 per month. • Parental leave: Proposal to extend parental leave to 28 weeks, fully funded by the gov- ernment for both employees and the self-employed. • Returning healthcare ex- perts: A five-year income tax holiday for Maltese healthcare professionals who relocate back to Malta from abroad. • Fit4Life scheme: A €300 grant for youths aged 15 to 24 to purchase a smartwatch to promote healthy lifestyles. • Energy prices: A commit- ment to lower energy bills sig- Alex Borg addressing the Nationalist Party rally in Lija on Workers' Day (Photo: Daniel Tihn/MaltaToday) CONTINUES ON NEXT PAGE >

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