Issue link: https://maltatoday.uberflip.com/i/1547510
The following has been edited for brevity and clarity. The full interview can be found on maltatoday.com.mt as well as our Facebook and Spotify pages. PHOTOS: DANIEL TIHN / MALTA TODAY 7 maltatoday | SUNDAY • 8 NOVEMBER 2026 INTERVIEW Let me start with what was arguably the most controversial aspect of the budget—the measures affecting for- eign workers. How exactly will they address overpopulation? For years now, the Opposition, commentators and different organisations have been discussing population growth and the need for the government to do something about it. This is the first budget of this legislature, and I think we have sent a clear signal that this government has acted on something people have been discussing for a long time. The way in which the government has acted is purely economic. On one side, you have the supply of workers. On the other, you have the demand coming from employers… Increasing the price of something—in this case, work permits—will lead to lower demand for foreign workers. I expect that, over time, there will be a change in behaviour in the way employers recruit workers from abroad. Secondly, our labour market is still very much employee-driven. Demand for workers is so strong that employees still have bargaining power. What will happen is that in various instances there will be demands for wage increases to compensate for precisely what we have introduced. I also expect that this will lead to a reduction in the demand for workers. You are assuming, however, that employers will absorb the additional costs. Those who do not do so will probably lose their workers, because demand in the labour market is so strong that those workers could leave them for another employer. Why, then, weren't the measures targeted at employers? You could've established caps for the number of workers in certain sectors, for exam- ple. But then you are getting into administrative matters. This approach allows the market to clear itself. In economics, we talk about the incidence of a measure, or the incidence of taxation—who bears the burden and on whom does it fall? Our labour market remains strong. For example, approximately half of third country nationals (TCNs) change employers within a year, in search of better conditions. Why do they do that? Because our labour market is vibrant. Employers are eager to recruit more workers, and if foreign workers find a better opportunity, they take it… Could the increase in costs lead to higher prices for consumers? In economics, what you are describing is called cost-push inflation. Costs increase and businesses pass those costs on to someone else. I don't believe there will be any significant cost-push inflation, primarily for two reasons: There is strong competition in certain sectors of our economy, which limits how much businesses can raise prices; and secondly, profit levels in our economy are generally higher today than they have ever been… Last Sunday, a number of Labour supporters and socialist individuals spoke to us, and they had nothing positive to say about the measures against foreign workers… I disagree with you calling them measures against foreign workers. We are not doing anything against foreign workers. But the burden has been placed on them. I disagree. The cost of the permit has increased, and I think I explained quite clearly how that works earlier. What would you say to these people who clearly don't view these meas- ures the same way you do? You and I, and everyone watching us, have been contributing to this country's infrastructure and development for a number of years. What we have done through this budget is say that everything generated as a result of having more people in the country must be taken into account, and this burden must not fall on the worker, because until now, that has always been the case. The increases and revisions were therefore inspired by this principle… We have become so accustomed in this country to the government constantly giving handouts, that perhaps people were surprised because we did something that had not happened in previous budgets. Instead of giving you've taken away from people who least can afford it. I think you can agree with me… I don't. Why? This budget has three pillars. The first is stability. Don't tell me that the fact we are spending €400 million means we are doing nothing. Employers, workers, foreign workers, and tourists all benefit. It would be a serious mistake to take the fact that we are spending €400 million for granted, as though it means nothing. This budget has also provided substantial support in the social sector. On the other hand, I will repeat what I said about people. We constantly say that people have legitimate concerns and are right to raise them. But then, when the government acts, suddenly that is considered wrong. We need to make up our minds. We learned that pregnant foreign workers will still benefit from free childcare next year. Do you rule out further concessions? As far as I am concerned, the President of the Republic signs the bill containing the measures; correct? Some measures are introduced through legislation. Others are introduced through the respective ministries, through the implementation of policies. As far as I am concerned, regarding the legislative measures, the Budget Bill has already been signed and completed. I do not expect any changes at committee stage, apart from cosmetic changes. So, it's set in stone? As far as I am concerned, yes. Last time I was here I asked whether you still consider yourself a socialist and you said yes. What about today? Yes. You don't agree with those calling those measures anti-socialist? I understand the concerns of certain people… In this country, I am perhaps one of the people who receives the most criticism on the issue of population, although I have reservations about some of that criticism because the story is not exactly as it is being presented. People vote for their representatives. As a representative, I must ensure that, in one way or another, I reflect what the Maltese and Gozitans are saying. People had these concerns, and we are taking the first step. This has absolutely nothing to do with xenophobia or racism… Shortly after the budget you also said that you did not rule out making re- visions to the budget if the financial situation deemed this necessary… I said I would make revisions to government expenditure if subsidies were to increase further. How much further? How far would things have to escalate before that happens? The budget allocates €400 million for subsidies next year. Let's assume that the international situation deteriorates further and we might need €450 million or €500 million. Our deficit must remain below 3%. Therefore, if I need to cover additional subsidy expenditure, I will have to look at how to adjust government expenditure accordingly.