Issue link: https://maltatoday.uberflip.com/i/1547431
10 maltatoday | SUNDAY • 1 NOVEMBER 2026 OPINION A government that refuses to settle for the status quo Ramona Attard Labour MP PEACE of mind. That is the cen- tral message of Budget 2027. And in today's uncertain internation- al economic climate, those words carry particular significance. Look at what is happening across Europe. France has ex- perienced protests over public spending, wages and living costs. Italy has witnessed demonstra- tions reflecting economic and social pressures. In the United Kingdom, economic growth is forecast to slow, while the gov- ernment has announced a one- off £100 payment for eligible households in England, alongside other measures to ease energy costs. Malta is not immune to inter- national developments. Yet our approach has been to maintain support for electricity and fuel prices while continuing to intro- duce measures that strengthen family incomes. Budget 2027 continues the implementation of Labour's electoral commitments while responding to new economic re- alities. Parents will benefit from the next phase of income tax reduc- tions, allowing families to retain more of what they earn. Pension- ers will receive an additional €10 weekly, including the cost-of-liv- ing adjustment. Eligible workers will benefit from a tax-free super bonus of up to €1,000. The budget also increases as- sistance for carers, extends sup- port for adoption and provides free therapies for children with disabilities. Families will contin- ue benefiting from established housing schemes, while the gov- ernment maintains support for energy prices. For smaller businesses, a re- duced 25% tax rate on retained or reinvested profits is intended to encourage investment and growth. These are measures with a clear economic purpose to support household purchasing power and encourage productive in- vestment. But responsible economic man- agement cannot be limited to protecting what we already have. It must also prepare the country for what comes next. For years, Malta has debated the consequences of rapid popu- lation growth, pressure on infra- structure, increasing dependence on foreign labour and the sus- tainability of tourism. Everyone wanted change. The Opposition certainly demanded it. Until change arrived. The increased eco-contribution and higher charges associated with foreign employment repre- sent an attempt to address these challenges. The principle is straightfor- ward—economic activity must contribute towards the infra- structure and public services on which it depends. Tourism remains essential to Malta's prosperity. Foreign workers remain indispensable to our economy. But continued growth must be accompanied by investment in roads, transport, services, innovation and produc- tivity. The objective should never be to create divisions between people based on nationality. It should be to ensure that growth is sustainable, that those who benefit from Malta's economic opportunities contribute fairly, and that people who establish long-term roots here are encour- aged to remain and integrate. This is particularly important when international economic conditions remain unpredictable. Malta must continue strengthen- ing its competitiveness, encour- aging investment in skills and productivity, and preparing for future challenges. The budget's changes to certain benefits reflect the government's intention to place greater em- phasis on long-term residence. In the case of free childcare, the new restrictions affect new regis- trations by foreign nationals who do not meet the required resi- dence conditions. However, one clarification is es- pecially important. As Finance Minister Clyde Caruana explained, not a single child already benefiting from free childcare will be removed from the scheme as a result of these changes. Children already en- rolled will continue receiving the service for free while they remain eligible. The broader policy objective is to encourage greater integra- tion and retention, rather than an economic model dependent on continually replacing workers who remain in Malta for relative- ly short periods. That objective deserves discus- sion, as do the practical conse- quences for families and employ- ers. And this brings us to growth, responsibility and the politics of contradiction and sheer hypoc- risy In September 2018, when the PN spokesperson for finance Adrian Delia was Opposition leader, he publicly warned about the impact of foreign workers on Maltese identity and communi- ties. His remarks, reported at the time, included concerns about the number of foreigners arriving in Malta and their integration in- to society. Delia's position was not sim- ply about infrastructure. He also raised questions about identity, values and the direction of the country's migration policies. Eight years later, the Nationalist Party has raised concerns about the increased costs of employing foreign workers. If the Opposi- tion believes the measures are wrong, which alternatives does it propose? Malta's economy needs work- ers, but it also needs investment. Businesses require competitive- ness, but communities need in- frastructure and reliable public services. Those realities must be recon- ciled. There is a fundamental differ- ence between promising every- one everything and shouldering the responsibility of governing. In the run-up to the election, the Opposition was reassuring em- ployers that they would face no obstacles in recruiting as many foreign workers as their busi- nesses required. Yet, at the very same time, its public rhetoric was fuelling fears about population growth and its impact on Maltese society. It is easy to demand more in- frastructure, fewer pressures from population growth, greater benefits and lower costs simul- taneously. The difficult part is explaining how those objectives can be achieved together. The Opposition is entitled to vote against the budget. But voting against a financial pro- gramme should also invite scru- tiny of the alternative being of- fered. A credible national debate re- quires more than identifying what should change. It requires explain- ing how change would be imple- mented, financed and sustained. This budget makes choices. Some will be welcomed, others debated, and their success will depend on implementation. But its direction is clear—pro- tecting families, maintaining eco- nomic confidence, encouraging investment and responding to the challenges created by growth. Stability must never become complacency. Nor should eco- nomic success mean that we stop questioning whether our policies remain appropriate for the future. A government that refuses to settle for the status quo must re- main willing to review, adapt and improve. Because the difference between making promises and governing is ultimately the will- ingness to turn difficult decisions into lasting results.