Only Labour guarantees economic prosperity

Owen Bonnici (Minister for National Heritage, the Arts and Local Government.)

This Monday, we will present the fourth budget of this legislature. Families will be the focus of Budget 2026. This budget follows a statement from the International Monetary Fund (IMF) indicating that Malta's economy is expected to continue surpassing the rest of Europe, with the IMF forecasting it will remain the fastest-growing economy in the eurozone through 2030.

PRE-2013

There was a time, not so long ago, pre-2013, when Budgets were met with hesitation by families and businesses. Austerity was the order of the day, and budgets were mostly an exercise in austerity. I recall the shocking increases in water and electricity rates. Notwithstanding the outcry that followed, with unions taking to the streets and families and businesses pleading with the then Nationalist Government to reverse the exorbitant price hikes, the Lawrence Gonzi administration wouldn't budge. Those increases reversed when Labour was elected in 2013, and have remained stable, thanks to government subsidies to this very day, caused untold hardships for families and small businesses.

FAMILIES

I have a clear recollection of that period of great austerity when I used to meet families, during house visits, a mainstay of my political activism, and I could feel the hardships that those price hikes had brought to low- and middle-income families.

PENSIONS

Pensions, too, were under huge financial difficulties, added to the increase in water and electricity prices, successive Nationalist Party administrations had adamantly refused to increase pensions. In fact, for decades under PN-led administrations, pensions remained frozen in time.

UNEMPLOYMENT

Pre-2013, unemployment reached historic highs. Feeling the pinch from the austerity measures imposed by the government, many businesses laid off their employees, and others closed shop. Labour has dramatically reversed that trend. Malta has one of the highest employment rates in the EU.

INFLATION

As if the steep rise in water and electricity prices and Dr Gonzi's refusal to increase pensions, weren't enough, inflation was sky high. The daily prices of the most basic foodstuffs, which no family can do without, and that included bread and milk, skyrocketed, and the PN-led administration, instead of cushioning families from those steep increases, did absolutely nothing, leaving families and pensioners to bear the brunt.

BUREAUCRACY

Those were tough times indeed, not to mention the stifling bureaucracy that was the order of the day and the reason why many businesses went bust.

CHANGE

And then things changed. There were no magic wand moments, nor bouts of luck, but a much-needed change in government that saw a new crop of politicians take stock of the situation, which had become close to desperate.

VISION

Labour turned things round, a new economic vision replaced one that was past its expiry date, and business confidence bounced back. The rest is history: water and electricity prices went down; employment bounced back; foreign direct investment poured in; free childcare was introduced; pensions went up, as did children's allowances.

RIGHTS

Civil rights, banned completely under PN-led administrations, were introduced. It was a new era for Malta and a much needed one.

CHALLENGES

Since then, we have faced many challenges, some of unprecedented proportions, Covid, especially, but we never gave up.

Today, under the Robert Abela Labour administration Malta has the fastest growing economy in the EU; unemployment is historically low; tax cuts have become the order of the day; pensions increased 10 times since Labour took office; a wide range of family friendly measures were introduced; free childcare was extended for all; foreign direct investment is at an all time high; water and electricity have, thanks to government subsidies, remained stable - so did fuel prices.

EY SURVEY

The EY Malta Attractiveness Survey confirms that Malta has just scored its highest rating in nearly a decade when it comes to foreign investment appeal. 78% of investors now say Malta is an attractive destination for foreign direct investment. Last year it was 54%. A massive 25% jump in confidence. Only Labour guarantees economic prosperity.

NOT A GIVEN

Malta's economic situation is an extraordinary success. But it would be wrong to assume that this is a given. Things can change, for the worse, if, as a country, we throw caution to the wind and trust this country's future in the hands of the very same people who, pre-2013, created economic havoc. Only Labour can guarantee economic prosperity. We are tried and tested, and we have proved ourselves to be competent.

BRUSSELS

In Brussels this week, the Nationalist Party attempted, once again, to tarnish Malta's reputation at the EU Parliament. In Parliament, discussing the motion in favour of Malta, tabled by the Labour Party Parliamentary Group, I expressed my disappointment at the PN's shallow partisan tactics to try and inflict harm on Malta's economy and its people. Despite the new PN leader's promise of a fresh start, what we got was more of the same.

FORWARD

The journey is far from over. We have a lot of work waiting to be done for the benefit of all Maltese and Gozitans. We must ensure that the wealth being created benefits all and that effective measures are introduced to ensure a better quality of life for all.

Budget 2026 shall be investing in the future of this beautiful country and its people.