PM strongly defends subsidies, warns geopolitical instability could become ‘new normal’

‘On May 1, the Labour Party will celebrate the achievements of workers’

Prime Minister Robert Abela has defended the government’s economic and energy policies amid growing geopolitical uncertainty, insisting that a Labour Government’s preparedness, financial resilience and stable economy have enabled the country to shield families and businesses from the worst impacts of international crises.

Speaking during a live interview with television host Manuel Micallef on the Labour Party’s broadcasting station, he said that the choices we have in front of us will be based on whose really capable of administering the finances and economy of the country so that energy subsidies do remain sustainable for families and businesses in the long-term, in times of crises.

Abela referred to the May 1 celebrations to be held at Castille Square in Valletta being organised by the Labour Party whereby “we will celebrate the achievements for our workers together”.

Abela reflected on discussions held during an informal summit in Cyprus attended by the leaders of the 27 European Union member states and other international leaders.

The Prime Minister said the discussions at the summit focused heavily on fuel and energy security against the backdrop of mounting geopolitical instability.

“The sentiment is very worrying,” Abela said, warning that the turbulence currently being experienced on the international stage could become “the new normal” in the near future.

Against this backdrop, Abela argued that Malta’s approach to energy and fuel subsidies stands out when compared to other European countries.

“What is being done in Malta has no comparison,” he said, stressing that the government had managed to keep fuel and energy prices stable despite international shocks.

Abela attributed this stability to what he described as the country’s sound public finances and thriving economy, arguing that these have made it possible for the government to sustain subsidies aimed at protecting consumers.

“Our sound finances and thriving economy are the answer to the energy and fuel subsidies,” he said.

The Prime Minister also pointed to the government’s handling of the COVID-19 pandemic as proof that Labour’s policies work during times of crisis. He recalled that Malta had reduced fuel prices by seven cents during the pandemic and had also lowered energy prices despite the difficult international climate, despite the fact that Malta had introduced a 25 per cent reduction on electricity rates before COVID times.

“We have always been prepared,” he said, while criticising the Opposition leader’s stance on subsidies who referred to the government’s subsidies as ‘short-lived’.

Abela said the government could have followed the Opposition’s advice that the subsidy system was in the Opposition’s opinion a short-term solution, but instead chose to continue supporting households and businesses.

“These are the choices we have in front of us,” he said.

He also underlined Malta’s vulnerability as a small island nation that imports around 70 per cent of what it consumes, making the country more exposed to international disruptions.

“Malta imports 70 per cent of what we consume and we get impacted more by international challenges,” he noted.

The Prime Minister credited Finance Minister Clyde Caruana and Economy Minister Silvio Schembri for helping maintain sound finances and strong economic performance.

He also praised the work of several ministers within his Cabinet, including Home Affairs Minister Byron Camilleri and Justice Minister Jonathan Attard, whom he commended for their work on governance.

The Prime Minister also lauded Deputy Prime Minister and Foreign Affairs Minister Ian Borg for his role in strengthening Malta’s international relations.

Turning back to the energy sector, Abela said the government had been prepared for further international disruptions and had ensured that Malta maintained sufficient fuel supplies.

He praised Energy Minister Miriam Dalli for her work in safeguarding the country’s energy security.

“Challenges are ongoing and we have been and are always prepared,” he said.

Despite the significant pressures facing governments worldwide, Abela insisted that Malta remained ready to face future challenges and eventually we can also turn them into opportunities.

“The months ahead can be an opportunity to grasp opportunities,” he said.

Abela additionally highlighted growing international interest in Malta’s medical technology sector, saying companies in the MedTech industry are increasingly viewing Malta as a stable destination for investment.

Looking ahead, Abela said an important European Council meeting scheduled for June would focus on negotiations surrounding the European Union’s long-term budget framework, including aid for Ukraine as well as cohesion and agricultural policies.

He stressed the importance of securing a strong financial package for Malta while he said it is vital the EU recognises the country’s specific realities.

“The EU budget is important for Malta but Europe needs to look at the realities of our country,” he said.

Abela also recalled criticism from the Opposition during previous budget negotiations, saying they had predicted Malta would fail to secure favourable funding arrangements.

“There were times when the Opposition said we would not get the budget we wanted, but we got double the amount of budget.

“We will try to get the best EU budget for our country once again.”

The Prime Minister also highlighted the government’s reform agenda, pointing to proposed Living Will legislation as another example of Labour’s drive for change.

“What amazes me is the thirst our Cabinet has for new reforms,” Abela said.

He spoke passionately about IVF reform, which he described as one of the most significant achievements of a Labour administration.

Referring to the IVF legislation introduced during Labour’s first 100 days in government, Abela called it the “best reform ever”.

He criticised members of the Opposition who voted against the reform, including the Opposition leader at the time.

“The PN delegates who voted against it were even proud to have vote against IVF,” he said in disbelief.

He said that if a reform is not widely supported, the government does not impose it on the public.

Referring to the proposed social media reform, Abela said the discussion began after he attended a conference in New York where a mother recounted how her daughter had been subjected to severe online bullying that ultimately led to her suicide. The grieving mother later launched an anti-bullying campaign.

Abela said the testimony deeply moved those present at the conference.

“As she recounted her daughter’s story, everybody present started crying,” he said.

He added that Malta is currently examining the best policies to safeguard children online.

“You can either stand there and do nothing or do something about it,” he said, adding that Cabinet is expected to take a decision in June following a wide consultation process and without adopting draconian measures.

Turning to mass transport, Abela said the government has entrusted a reputable firm with designing Malta’s future sustainable transport system. He said the government had opted for a €2.8 billion project, roughly half the originally projected cost, aimed at creating an integrated and sustainable transport system linking different modes of transport. Including a light railway system.

Abela also spoke about plans for a new mental health hospital to be built within the Mater Dei complex, as well as the extension of the hospital’s emergency department.

He also referred to the Ħal Far race track project, saying a meeting on the initiative is scheduled for May and that the project would allow motorsport enthusiasts to “live their dream”.

The Prime Minister further highlighted the number of sectoral agreements concluded by the Labour government in a relatively short period, including agreements with the Civil Protection Department.

Speaking about the Labour Party congress, Abela praised the event’s organisation and drew comparisons with the Nationalist Party’s conference, criticising the PN for inviting a foreign speaker, a Spanish politician, who attacked Malta while a Labour Congress focused on making Malta a better place.