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6 maltatoday | SUNDAY • 1 NOVEMBER 2026 OPINION Robert Abela Malta Mieghek Prime Minister OVER recent years, the glob- al economy has been exposed to repeated large shocks. A pandemic, several wars and conflicts, prolonged inflation bursts, energy crises, trade wars. Any one of these shocks had the potential to complete- ly disrupt economic and social progress in our country. Yet, here we are, a small country exposed to all this global uncer- tainty, and still capable of being there for our families and busi- nesses. We are doing what others, much larger countries, cannot afford to do. Only in Malta can the government, responsibly and without putting in jeopardy the future, be the shield against international shocks in energy and fuel prices. A protection that means the median family is saving more than €2,000 on these essentials. A guarantee which means our businesses are facing amongst the lowest op- erating costs in Europe, boost- ing competitiveness. Our policy on subsidies is the cornerstone of our country's economic success. One positive certificate after another from international institutions, key among them the IMF's pre- diction that we will have the highest economic growth rate, the lowest inflation and unem- ployment rates in the eurozone. Despite spending €400 million on subsidies, the deficit will re- main at 2.6% of GDP, and na- tional debt will stay well below 50%. Countries like France and Germany, despite not offering the same support to their peo- ple, will be registering deficits of over 5%, nearly double ours. The strength of our economy and its impact on public financ- es mean that we can continue to help families achieve their aspirations. While around Eu- rope, families are increasingly burdened with rising bills, in our country we will continue to help address cost-of-living challenges. Budget 2027 will double the reduction in the tax burden on parents from that awarded this year. If last year you saved €500, this year you will save €1,000. We thus con- tinue resolutely on our path to become the first country in the world where a middle-class couple with two or more chil- dren do not pay a single cent in income tax. Besides this, we will start giv- ing a super bonus of €1,000 to every full-time worker and at least €500 to every part-time worker. The tax cuts announced since 2025 mean that every year more than half a billion euro will remain in people's pockets. Pensions will improve fur- ther, by at least €10 per week. Widows will next year receive a full pension for the first time in history. Thousands of pen- sioner couples that now de- pendent on a single pension will start to benefit from two pensions thanks to a reform that allows couples to share their respective social security contributions. We will improve other social benefits such as the carers grant and start to cover the therapy costs currently in- curred by parents with children with disabilities. While being there to help with the needs of the present, we will invest strongly to pre- pare Malta for the needs of the future. Budget 2027 has the largest capital programme in our nation's history with an envisaged spend on gross cap- ital formation of nearly €1.5 billion, about 25% more than this year. We will continue with our strong investment to make our country AI-friendly and not just AI-ready. We will acceler- ate investment in the electrici- ty generation and distribution system so that we can electrify our economy as quickly as pos- sible. We will invest in better health facilities while continu- ing to increase green spaces in our country. We will carry out the reforms that are needed to have an education system that creates the skills and capacities that are needed. At the same time, we are re- inforcing our policy direction to further reduce dependence on additional workers and to accelerate the evolution of our economy towards one of higher productivity and better added value. In the past, the emphasis was on introducing new policy frameworks and regulations. In this budget we are reducing by 10% the corporate tax bur- den on SMEs that reinvest their profits, while also boosting fis- cal measures that will generate funds to help finance the strong expansion in infrastructure spending needed to take Malta to the next level. Recognising the importance of both foreign workers and tourists for our continued economic progress, they must carry a fair share of the impact of rising economic activity. All of this is intended to move us closer to the achievement of our Malta Vision 2050. At a time of rising cost-of-living challenges, we have not just fo- cused on protecting incomes, we have also continued working on our strategic pivot towards a new stage of economic and so- cial development, a society fo- cused on improving wellbeing. Malta Miegħek, not only for today's challenges, but to con- tinue to meet tomorrow's as- pirations, and turn challenges into opportunities. So that we transform the successes of to- day into the successes of to- morrow. Malta Miegħek, not only for today's challenges, but to continue to meet tomorrow's aspirations, and turn challenges into opportunities. So that we transform the successes of today into the successes of tomorrow

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