The government declared that, in an effort to counteract growing inflation and support social welfare, it has launched a bold economic initiative called “Stabbilta”: a voluntary price limiting program. The government has taken a unique cooperative approach by encouraging businesses to voluntarily lower the cost of necessities to 85% of their Recommended Retail Price index in October. This effort, which...
Economy
The Future of Farming in Malta: Organic Farming Realities and the Balance with Sustainability
In an era propelled by environmental consciousness, the European Union’s resolute ‘Farm to Fork’ strategy heralds a paradigm shift in tomorrow’s organic farming realities. This strategy ambitiously sets its sights on dedicating 25% of agricultural land to organic cultivation by 2030. Reflecting this trend, Malta, too, has committed to elevating its organic sector from a mere 0.6% to 5% within...
Malta’s tourism is booming. Is that a good thing?
Malta’s tourism sector has recently witnessed a significant surge, with a remarkable 20.2% year-on-year increase in inbound tourists recorded in the month of September 2023, projecting the year’s total to approach the significant milestone of 3 million visitors. With the number of approved hotels under construction at the moment, this number is expected to increase to 4.7 million by 2027....
Mintoff and the chocolate factory
Understanding the impact of protectionism on a nation’s economic landscape is key to global economics. This was palpably evident in 1970s Malta under the leadership of Dom Mintoff. As a strategic embodiment of protectionism, the Maltese government introduced dramatic measures to bolster local industries, reducing foreign goods dependency. Among these measures, the most contentious was the chocolate ban. Malta’s Economic...
Clyde Marx? Was the budget as socialist as he described?
The 2023 budget strengthens the welfare state with 60% of the measures listed in the speech could be considered “socialist”. However, this form of social protection will have challenges in the future such as ageing population which will require a rethink of the system. In the post-Muscat era, the Labour Party is actively trying to re-associate itself with its socialist...
A reasonable budget amidst a global energy crisis
Amid the economic turmoil and geopolitical tensions across Europe, Finance Minister Caruana unveiled the government’s budget for 2023. Broadly speaking, the budget is similar to recent ones presented by the Labour government. A common narrative of new taxes and an increase in a number of benefits to curb the effects of looming crises, as well as robust one-off measures to...
Is there a gender pay gap in Malta?
In short: yes. The latest Eurostat data shows that on average, for every €100 a Maltese man earns, a woman earns €90. The gap is even wider in a lot of European countries, as the EU average means that the average European woman earns €87. This is an undeniable fact. The less straightforward question, however, is why. When discussing the...
Are young Maltese worse off than their parents?
People tend to accumulate wealth as they grow older. But is the wealth gap between today's youth and their parents widening? Recent data suggests that despite the higher wages, higher property prices and a more lavish lifestyle are among the factors which may explain a rising intergenerational inequality gap.
What can be done to fight inflation?
After more than 30 years, high inflation is making the news again. We are cooking a video specifically on inflation, but in the meantime, today’s TL;DR explains what central banks and governments can do to counter inflation. You might already know this but, to buy stuff, you need money. The more money you have, the more stuff you buy. If...
Volt’s proposal to raise the minimum wage to €1,100 per month. An Analysis
Raising the minimum wage by such an amount would likely result in a wage increase across the board, giving rise to increasing costs to the private sector which would experience higher costs of production. Volt Malta, a new Pan-European political party contesting the 2022 elections is proposing a minimum wage increase to €1,100 per month over a three-year period to...
What went wrong with the global supply chain?
Increasing prices. Long shipping delays. Out-of-stock products. A nightmare of supply chain issues. You may or may not be aware, but there’s an ongoing global logistical nightmare – the effects of which have been felt even in tiny Malta. Since 2018, political bickering between the US and China has resulted in massive volatility in supply of all sorts of products...
The Good, the Bad and the Questionable – The 2022 Budget Explained.
Monday’s budget speech was Mr Clyde Caruana’s first as Finance Minister. As with every budget, it’s now on everybody’s lips. However, you may feel left out, maybe aware of some of the proposals but not really knowing what to think of this year’s budget measures and lost in the 90-page speech. If you are tired of being left out, want...