independent_mt23d ago
Economic credibility, public debt and Malta's long-term direction dominated the fourth election debate between Prime Minister Robert Abela and PN Leader Alex Borg, as the two leaders sparred before Malta's business community during a debate organised by the Malta Chamber of Commerce. The debate opened in a relatively measured tone as both leaders focused heavily on economic policy and fiscal sustainability, while attempting to present themselves as the more credible and business-friendly option, before exchanges became sharper towards the final sections of the discussion. One of the first questions by moderator Rachel Attard centred on concerns within the business community over what was described as a "rain of promises" from both parties and how these measures would ultimately be financed. Abela spoke about Labour's economic record over the past years, repeatedly emphasising "competence and credibility" as the foundations of the government's proposals. He referred to the Malta Vision 2050 document, saying discussions between government and the Chamber of Commerce held during the pandemic eventually evolved into a long-term national strategy built around five pillars. Abela insisted Labour's electoral measures were fully costed and sustainable, saying they would amount to €6.3 billion over five years and would be financed through continued economic growth and fiscal planning. Abela said that Malta is expected to generate €7.8 billion in the coming years with continued economic growth. "The real projected growth is 4%," Abela said, arguing Malta's annual economic output had increased from around €5 billion before the pandemic to more than €8 billion in 2025. Abela also repeatedly mocked the PN's proposed fuel hub, describing it as effectively a "petrol station at sea" and questioning its environmental credibility. Borg approached the same question by arguing Malta needed to generate new forms of economic growth rather than continue relying on existing sectors alone. He outlined several industries which he said remain underdeveloped, including AI, newspace, the creative economy and green maritime fuels. Borg referred to the PN's proposed Maritime Fuel Hub at Hurd's Bank, arguing Malta was missing out on major opportunities linked to cleaner fuels and bunkering despite thousands of commercial vessels passing through Maltese waters annually. "In our waters between Malta and Sicily, more than 80,000 vessels pass through," Borg said, as he said the project could create significant added value jobs and revenue for the country. The PN leader also repeatedly stressed the need to strengthen productivity and reduce bureaucracy for businesses, particularly SMEs and microenterprises. On taxation, Borg said the PN wanted to reduce personal and corporate taxes, remove the 5% succession tax and reduce bureaucracy for businesses. He said that when governments lower taxes, they ultimately generate more revenue through economic growth. Abela replied that Labour had already implemented two consecutive tax cuts while maintaining economic growth and social support measures. Defending Labour's "super bonus" proposal, Abela said the €1,000 annual payment would be non-taxable and available to workers, part-timers, self-employed and pensioners who continue working, but foreign workers would need to have lived in Malta for five years before benefiting. He said beneficiaries must have contributed to the country before receiving the bonus. The debate then shifted towards public debt, geopolitical uncertainty and migration, with both leaders offering sharply different interpretations of Malta's economic direction. Abela defended Labour's handling of crises over the past years, saying the government had created a strong enough economic framework to withstand international shocks. He pointed to tourism figures exceeding four million tourists last year, the end of tourism seasonality and new routes such as Delta Airlines flights between Malta and New York as examples of Malta's continued economic momentum. Borg, however, argued Malta's debt trajectory and infrastructure pressures were becoming unsustainable. He mentioned the PN's proposal for the creation of a Population Levels Authority and long-term labour market studies to better plan population growth, infrastructure and migration policy. "Traffic is costing the country €770 million a year," Borg said, arguing Malta's infrastructure was struggling to keep up with demographic growth. Abela defended Labour's labour migration reforms, saying the government had already tightened the system and reduced abuse involving temping agencies and vulnerable workers. "There were situations of abuse," he admitted, while insisting reforms had improved integration and reduced turnover among foreign workers. Borg said that Malta lacked a serious long-term population strategy, adding that businesses themselves were increasingly concerned about the pressure population growth was placing on roads, hospitals and infrastructure. Borg said that migration policy should be based on proper studies and sustainable planning rather than short-term reactions. Healthcare also featured prominently in the discussion, with Borg pledging that a PN government would invest in four hospitals across Malta and Gozo while raising stipends for health sciences students to the equivalent of the national minimum wage in order to attract more Maltese into the profession. He repeatedly criticised the hospitals concession deal and direct orders issued by government, accusing Labour of wasting public funds. "Public funds belong to the people," Borg said, referring to the direct order granted to ARUP for its expertise on Labour's mass transport project. Abela defended Labour's healthcare investment and focused on social measures such as parental leave, childcare support and free therapy services for children. On open spaces and the environment, Borg criticised the government, saying the Labour Party had "placed gravel at Ta' Qali for €300,000." He also referred to the Manoel Island project and said he would not take political credit because the work had been carried out thanks to NGOs. On the Malta Vision 2050 strategy, Borg said projects such as mass transport should begin being implemented "from day one" rather than remaining long-term promises. Replying, Abela questioned the priority Borg was giving to EU funds, while arguing that the war in Ukraine had left a "€90 million hole" in European finances. He said Malta faced major challenges during negotiations on the EU budget and insisted that "it is not a question of simply bringing money without sense, but how you negotiate for it." As the debate progressed, the exchanges between the two leaders became noticeably sharper. Representatives from the business community raised concerns about proposals such as the four-day week and compressed working arrangements, saying proper impact studies were needed before such measures are introduced, particularly in sectors like manufacturing where fewer working hours could result in fewer people at work. Abela replied that the government does not believe in "giving shocks" but rather in working together with employers and businesses. He said Labour's proposals were aimed at creating a better work-life balance through measures such as increased maternity and paternity leave, new parental leave arrangements and an additional 28 days of leave in a child's second year, all funded by government so as not to place burdens on businesses. Abela said the economy had now reached a stage where it could sustain such measures and argued that employees who spend more time with their families in the first months after childbirth return to work happier and more productive. He also said flexibility at the workplace should be a right for workers. Borg laughed during the exchange and accused Labour of inconsistency on the issue. He said Labour had previously attacked the PN openly over the four-day week debate and was now speaking about compressed working arrangements itself. Borg said that pilot projects should first be introduced seriously within the public sector and studied properly before wider implementation, arguing there needed to be "seriousness" on the issue rather than contradictory messaging. To this, Abela quipped that such pilot projects already exist within the public sector. As the debate progressed, several answers increasingly turned into direct rebuttals of the opposing leader rather than responses to the original question, with the moderator at times attempting to steer the discussion back on track as both leaders exceeded their speaking limits. Borg accused the government of making Malta too dependent on foreign energy sources and criticised Labour's renewable energy record, pointing to Eurostat figures placing Malta among the lowest performers in renewable energy generation. Abela responded by attacking what he described as inconsistencies and technical shortcomings within the PN's proposals, repeatedly questioning the Opposition's costings and feasibility studies. During a question on whether Maltese society was ready for a cultural shift away from car dependency, Abela devoted much of his response to criticising PN transport costings and renewable energy proposals rather than directly addressing behavioural change. At one point, while defending Labour's mass transport proposals prepared by the firm ARUP, Abela contrasted them with what he described as unrealistic PN figures. Borg pushed back, saying that the PN's proposals had been endorsed by known experts and accusing Labour of dismissing alternatives without properly engaging with them. The atmosphere became visibly more combative during the final section of the debate dealing with governance, EU policy, green spaces and innovation. Borg accused Labour of becoming uncomfortable with transparency and governance reforms, referring to past controversies linked to grey listing and declarations of assets. Abela countered by defending the government's handling of EU funds and Malta's economic growth, while warning that future EU budget negotiations would become increasingly difficult for Malta because of the country's economic success and higher co-financing obligations. Both leaders also used their closing remarks to present broader visions for the country. Borg told businesses the PN wanted to create an economy based on new sectors, sustainable population planning and reduced bureaucracy while giving businesses greater autonomy. "This is not just about giveaways and handouts, but about a long-term vision," Borg said. Abela, meanwhile, thanked the business community for supporting the country during the pandemic and said Malta's economic resilience had been built through cooperation between government and private enterprise. "Our economic success depended on national unity," he said, again presenting Labour as the party of stability, competence and continuity. Opening the session, the Chamber's President William Spiteri Bailey said that Malta's next legislature must mark a transition "from volume to value" and from short-term solutions to long-term planning, warning that the country's economic model had reached a critical point despite years of resilience, growth and investment. He called for productivity, competitiveness, good governance and institutional excellence to be placed at the centre of the national agenda, while urging reforms in public procurement, transparency and education. CEO Marthese Portelli urged both political leaders to move beyond election slogans and present realistic, long-term solutions capable of preparing Malta for future challenges, warning that promises made during campaigns could ultimately "come back to haunt" the country if they are not sustainable. "The real question in this election is not who will win, but what kind of country Malta wants to become in the coming years," she said. You can follow the debate live in link below:
