Issue link: https://maltatoday.uberflip.com/i/1547510
9 maltatoday | SUNDAY • 8 NOVEMBER 2026 OPINION The political choice to invest and protect Miriam Dalli Minister for the Environment, Energy and Regeneration of the Grand Harbour BEYOND allocating funds, budgets are statements of polit- ical priorities, reflecting the de- cisions a government is prepared to take and the direction it in- tends to lead the country. Budget 2027 reflects a clear political choice; to protect the living standards of families while undertaking the substan- tial investment necessary to strengthen Malta's economic, social and environmental foun- dations. These objectives are not mu- tually exclusive. On the contra- ry, they are closely connected. Economic stability provides the conditions for investment, while sustained investment is essential to securing stability in the years ahead. This is the approach that has guided the Labour government, particularly through a period characterised by international economic uncertainty, energy market volatility and increasing pressure on public infrastruc- ture. It is also the approach that distinguishes our priorities from those pursued by previous administrations. My ministry has been allo- cated a capital budget exceed- ing €370 million for 2027, the largest capital allocation across government. The significance of this com- mitment should not be under- stated. The capital budget al- located to this ministry alone is comparable to the entire capital expenditure planned for Malta under the National- ist administration of Lawrence Gonzi in 2012. This reflects the scale of in- vestment that the Labour gov- ernment considers necessary to address Malta's present needs and prepare for its future. However, we all understand that public investment can- not be assessed solely in terms of expenditure. Its value must ultimately be measured by the improvements it delivers, the economic capacity it creates and the long-term benefits it secures for society. Alongside this substantial capital programme, govern- ment is allocating a further €400 million to maintain stable energy prices for families and businesses. Between 2022 and 2026, ap- proximately €1.35 billion was allocated to energy subsidies. These interventions have been central to protecting house- holds and maintaining eco- nomic stability during succes- sive periods of international disruption. This was purely a political decision. And one that we are prouder than ever to have tak- en. Governments across Europe are currently facing difficult choices as international en- ergy prices fluctuate. Malta's approach has been to absorb a substantial part of these pres- sures rather than transfer their impact to households and busi- nesses. Energy costs have an impact on business competitiveness and employment; not to men- tion investment decisions and their broader impact on a coun- try's economic landscape. Gov- ernment is therefore correct in choosing to protect household purchasing power while also allowing businesses to operate and grow. Our policy is not limited to protecting consumers from immediate pressures alone; it is accompanied by investment intended to make Malta's ener- gy system stronger and increas- ingly sustainable. Malta's economic develop- ment has brought growing demands on its electricity in- frastructure. Addressing these demands requires sustained in- vestment. The additional €75 million allocated to strengthening the electricity distribution net- work will help support further improvements in capacity, re- liability and resilience across Malta and Gozo. The commissioning of new distribution centres in Naxxar, Siġġiewi and Msida forms part of an extensive programme that is already delivering improve- ments to the national network. At the same time, strategic investments are reshaping the energy infrastructure. The second electricity inter- connector will double our in- terconnection capacity with Sicily. Preparatory work on a third interconnector, the devel- opment of large-scale battery storage and the exploration of offshore wind and renewable energy imports are intended to reduce vulnerabilities and pro- vide greater flexibility in meet- ing future energy requirements. Energy security is an economic necessity, and this fact is becom- ing more and more clear as time goes by, particularly as we wit- ness the issues that other coun- tries are facing. The reality is that without re- liable and diversified supplies, our country would struggle to sustain its competitiveness or adequately prepare for future de- mand. But we are also aware that the transition towards cleaner ener- gy must also be pursued in a so- cially responsible manner. This is why we continue to support households investing in renewable energy, and energy ef- ficiency. We cannot separate en- vironmental objectives from the financial realities of families, and we want to continue supporting families who wish to do their part in the ecological transition. In essence, a successful energy transition must be both acces- sible and capable of delivering benefits across society. The same long-term consider- ations guide our investment in water and waste management. For a country with limited nat- ural freshwater resources, wa- ter security is another strategic national priority. Strengthening production capacity and improv- ing wastewater treatment are es- sential to supporting economic activity and preparing for future demand. The expansion of New Water also demonstrates how invest- ment in infrastructure can sup- port agriculture while reducing pressure on groundwater re- sources. We are also investing in mod- ern waste treatment facilities to tackle long-standing environ- mental problems and make bet- ter use of available resources. These are substantial undertak- ings that require a degree of sta- bility, planning and the commit- ment of resources—even beyond the immediate political cycle. They are also investments whose importance will become increasingly evident in the years ahead. Our economic ambitions are to be matched by an equally se- rious commitment to improving the environment in which people live. A stronger economy must provide the means to improve public spaces, protect natural resources and address the envi- ronmental consequences of de- velopment. Our investment in urban greening, public gardens and national parks reflects this re- sponsibility. Meanwhile, work towards the development of na- tional parks at Manoel Island, White Rocks and Fort Campbell represents a broader commit- ment to safeguarding significant spaces for future generations. These interventions will create open spaces, but also address concerns on how land is used, who benefits from it and the quality of life that our commu- nities can expect. Because ac- cess to well-maintained public spaces is being regarded as an essential component of national development and not an option- al consideration. The central argument under- pinning Budget 2027 is that protecting people's living stand- ards and investing in the coun- try's future are complementary responsibilities. Government cannot limit itself to managing the immediate consequences of international developments; it must also address the structural challenges that determine Mal- ta's long-term economic and environmental resilience. For the Labour government, the fundamental purpose of economic growth is to provide greater security and better op- portunities; ultimately a better quality of life. This is the idea behind Malta Miegħek. Making sure that na- tional progress translates into real improvements for the peo- ple who contribute to it. Ultimately, the success of Budget 2027 will be judged by the results it helps achieve. We have a duty to keep Malta economically resilient, socially secure and better equipped for the challenges ahead.