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19 maltatoday | SUNDAY • 8 NOVEMBER 2026 OPINION Mbaghad jar'Alla… God will provide The magnitude of these effects would depend on spending pat- terns and economic conditions, but the underlying concern de- serves attention. There is also the question of opportunity cost. Public resourc- es devoted to recurring transfers cannot simultaneously finance alternative priorities. Investment in training, digital skills, child- care capacity or business tech- nology adoption could generate longer-term economic returns. This does not make financial as- sistance undesirable, particularly when households face genuine pressures. However, it illustrates the distinction between expend- iture that supports purchasing power today and expenditure that expands productive capaci- ty tomorrow. A sustainable eco- nomic strategy must achieve an appropriate balance between the two. The measures affecting third country nationals raise an equal- ly important economic question. Higher work-permit fees, an an- nual infrastructure contribution and restrictions on certain pub- lic benefits have been presented partly as a means of ensuring that foreign workers contrib- ute fairly towards the services and infrastructure they use. The principle that economic activi- ty should reflect its wider social costs is reasonable. Malta's rap- id employment expansion has undoubtedly placed pressure on housing, transport and public services. However, the effective- ness of these measures depends on whether they change the in- centives sustaining the existing economic model. Increasing the cost of employ- ing foreign workers does not au- tomatically encourage business- es to become more productive. A firm dependent on labour-in- tensive processes may absorb the additional expense, pass it on to customers or seek alterna- tive recruitment arrangements. In sectors experiencing labour shortages, additional costs may eventually translate into higher prices or reduced competitive- ness. More importantly, if busi- nesses lack the financing, tech- nology or expertise needed to modernise, higher employment costs alone will not deliver the desired transformation. They may simply make the existing model more expensive. There is another dimension that deserves consideration. Non-EU nationals are not merely users of infrastructure and public services. They are also contribu- tors to production, taxation and social security. Their economic contribution varies considerably according to skills, employment conditions and sector. A health- care professional, engineer and hospitality worker perform dif- ferent economic functions, yet all may be essential to the oper- ation of particular industries. A more sophisticated labour mi- gration framework should there- fore distinguish between differ- ent skills and economic needs, while encouraging employers to invest in productivity rather than rely indefinitely on additional re- cruitment. Economic tension Taken together, the super bonus and measures affecting foreign workers reveal a ten- sion in the budget's economic approach. On one side, govern- ment supports consumption through additional household income. On the other, it intro- duces costs that may increase business expenses or constrain labour supply. Where demand remains strong and productive capacity responds slowly, some adjustment may occur through prices. This is not a prediction of an inflationary surge, but it demonstrates why fiscal meas- ures must be assessed collective- ly rather than individually. Nei- ther measure, by itself, provides a clear mechanism for increasing potential output. The broader challenge remains productivity. Malta has demon- strated an impressive capacity to create employment and at- tract economic activity, but im- provements in output per hour worked have been less consist- ent. This has consequences for wages, competitiveness and pub- lic finances. When productivi- ty growth is limited, businesses struggle to increase wages sus- tainably, while government be- comes increasingly dependent on continued economic expan- sion to finance public commit- ments. For a small island facing physical and environmental con- straints, generating more value from existing resources is essen- tial. A genuine productivity strat- egy must operate within firms and across the wider economy. Businesses need incentives to invest in machinery, software, automation, research and work- force development. Smaller enterprises require support to modernise and overcome barri- ers to growth. Capital must also flow towards activities capable of generating greater value. Mal- ta's longstanding preference for property investment illustrates the importance of developing financing channels that support innovation, enterprise expansion and internationally competitive businesses. The more favourable tax treatment of qualifying rein- vested profits is a welcome de- velopment, but it needs to form part of a broader transformation agenda. Education remains perhaps the most consequential element of this discussion. The workforce that will sustain Malta's econo- my in 2040 and 2050 is already being shaped in today's class- rooms. Weaknesses in literacy, numeracy and broader learning outcomes are therefore not sim- ply educational concerns. They represent future constraints on productivity, innovation and social mobility. Malta needs to place educational outcomes at the centre of its economic strat- egy, with greater attention to teaching quality, foundational skills, vocational pathways, dig- ital competence and lifelong learning. A more productive economy cannot emerge without a workforce capable of support- ing it. Anticipating demand Infrastructure is equally funda- mental. Congestion, utility con- straints, administrative delays and pressure on public servic- es impose real economic costs. These reduce the effective pro- ductivity of labour and capital, even when headline growth re- mains strong. Malta has invest- ed significantly in infrastruc- ture, and this progress should be recognised. However, future investment must increasingly anticipate demand rather than react to pressures once they emerge. Transport, energy, water, digital connectivity and land-use planning should be approached as interconnected components of productive ca- pacity, supported by long-term priorities and transparent as- sessment of economic returns. This brings us directly to Vi- sion 2050. The national vision provides a valuable framework for sustainable growth, resil- ience and improved quality of life. Yet its credibility will de- pend on how effectively present decisions advance these ambi- tions. Annual budgets cannot deliver every structural reform, but they should demonstrate a clear connection between ex- penditure, incentives and long- term outcomes. Are we increas- ing output per hour worked? Are educational outcomes im- proving? Is business investment becoming more productive? Are infrastructure constraints being reduced? These questions should become central meas- ures of economic progress. None of this diminishes the importance of social protec- tion or immediate financial assistance. A productive econ- omy must also be inclusive, and government has a legiti- mate responsibility to support households facing economic pressures. Indeed, stronger productivity is ultimately what makes higher wages, better pensions and improved public services sustainable. The chal- lenge is to balance today's legit- imate needs with investment in the capabilities that will sustain prosperity over time. This re- quires evaluating not only what policies deliver immediately, but also what they enable the economy to achieve in the fu- ture. Perhaps the broader lesson is that resilience and prepar- edness are not the same thing. Malta has repeatedly demon- strated its ability to respond to external shocks and changing circumstances. That adaptabil- ity remains a national strength. Preparedness, however, re- quires anticipating constraints and addressing them before they become urgent. It means investing in skills before short- ages deepen, improving infra- structure before congestion becomes overwhelming and en- couraging productivity before additional labour becomes the default response to growth. Ultimately, Mbagħad jar'Alla may be a reassuring expression in everyday life, but it should not become an approach to economic development. Sup- porting consumption and re- covering the costs associated with economic expansion may be legitimate objectives, but neither should be confused with strengthening productive potential. The Malta of 2050 will be shaped by the capabil- ities we develop today, the in- vestment we encourage and the institutions we strengthen. The future will always contain un- certainty, but preparing for it should never be left to chance. Bianchi/MaltaToday)