The meeting was driven by a presentation by EU Semester Officer Mr Martins Zemitis on the country report. Mr Zemitis emphasised that Malta’s economy had experienced a robust rebound, surpassing the EU average growth rate. However, concerns were raised regarding the projected impact of inflation on household incomes and consumption in the years 2023–2024.

The report acknowledged the government’s interventions in curbing inflation, although it remained at an elevated level. It also highlighted the budget deficits resulting from energy support measures, reaching -5.8% in 2022, -5.1% in 2023, and -4.5% in 2024.

To address the challenges posed by higher energy prices, Malta has implemented measures aimed at mitigating their impact. These measures, which involve reductions in fuel taxes, subsidies for energy costs, and targeted income support for low-income households, are projected to account for 2.5% of GDP in 2022, 1.7% of GDP in 2023, and 1.5% of GDP in 2024.

Due to its heavy reliance on fossil fuels and imports, Mr. Zemitis stated that Malta should prioritise promoting the green transition, despite the fact that it consumes less renewable energy than the EU. Additionally, addressing traffic congestion, reducing emissions, and enhancing energy efficiency were identified as ongoing challenges.

Fiscal sustainability and taxation were key concerns discussed during the meeting. The reliance on corporate income taxes and low tax revenues were highlighted as areas requiring attention.

The social partners actively engaged in a stimulating conversation, offering valuable recommendations and support to address matters raised by the European Commission representation in Malta.

As government representatives, Hon. Clyde Caruana, Minister of Finance and Employment, and Hon. Andy Ellul, Parliamentary Secretary for Social Dialogue, shared their perspectives on this important report and indicated a course of action for the government.

The MCESD reiterated its commitment to engaging in national and EU-level discussions on matters of national interest, highlighting the strength and importance of active social dialogue.

The presentation can be accessed here.

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Country-specific recommendations.

The presentation can be accessed here.

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The social partners engaged with prominent actors in this area, including the Governor of the Central Bank of Malta, Prof. Edward Scicluna, the Minister for Finance and Employment, Hon. Clyde Caruana, and the Parliamentary Secretary for Social Dialogue, Hon. Andy Ellul, to gain insights into the current situation regarding these matters.

Professor Scicluna emphasised the crucial role of the Central Bank of Malta, a significant social partner within the MCESD, in ensuring stable and low inflation. He outlined the primary goal of central banks: to maintain an inflation rate of 2%, which allows for a well-functioning economy.

During his presentation, The Central Bank’s Governor highlighted the sectors most impacted by inflation, with the food sector experiencing the greatest upward effect, partially due to reduced energy prices. A comparison of inflation rates across the EU was also provided, offering valuable context.

Furthermore, the Governor detailed the Harmonised Index of Consumer Prices (HICP), a metric used to measure consumer price inflation in the euro area. The HICP tracks changes in the prices of goods and services purchased by households, providing insights into cost fluctuations.

Hon. Clyde Caruana, shared his insights on this significant and sensitive matter to the country, its economy and its competitiveness. While emphasising energy and the economy, he highlighted the government’s efforts to support Malta’s economy, emphasising its strength when compared to other European nations.

The social partners actively voiced their opinions and concerns on this matter of shared interest. Discussions revolved around challenges that the manufacturing sector faces with regard to transportation and logistics, worker wages, the skills gap that the economy faces in nearly all industries, the people’s standards of living, and the cost of living.

The MCESD remains committed to analysing, discussing, and providing recommendations on topics related to the economy and society, ensuring that the interests of both workers and employers are addressed. MCESD remains a strong instrument for social dialogue in Malta’s sustainable development.

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The conference drew the attention of esteemed speakers including the Prime Minister of Malta, Hon. Robert Abela, the Minister for Finance and Employment, Hon. Clyde Caruana, the Parliamentary Secretary for Social Dialogue, Hon. Andy Ellul and the Chairperson of the National Productivity Board, Perit David Xuereb. Notable attendees also included Members of Parliament from both sides, including the Parliamentary Secretary for Youth, Research, and Innovation, Hon. Keith Azzopardi Tanti, and the Shadow Minister for Social Dialogue, Hon. Claudette Buttigieg.  The Principle Permanent Secretary, Mr Tony Sultana was also present.

During the conference, the background and detailed recommendations of this latest National Productivity Report (NPR) took centre stage, with its authors (Prof Von Brockdorff, Dr Jonathan Spiteri and Dr Ian Cassar (who was excused) offering an insightful and comprehensive analysis of RDI in Malta and what needs to be done to improve its impact across various economic sectors. The NPR emphasised the importance of fostering innovation through collaboration of the private and public sectors, encompassing organisational, market, and input innovation. Furthermore, it shed light on the existing gaps in RDI spending and participation, while calling for the positioning of Malta as a bridge with its European counterparts.

In his address, the Prime Minister of Malta, Hon. Robert Abela, commended the collaborative efforts of social partners to produce a comprehensive report on Malta’s quest to improve productivity and competitiveness. He highlighted the indispensable role of social dialogue as a catalyst for progress and reaffirmed the government’s commitment to collaborate closely with all stakeholders through the Malta Council for Social and Economic Development (MCESD) in driving Malta’s economic development.

Driving the conference experience, a panel discussion brought together representatives from diverse sectors and perspectives. The panel comprised Mr. Wilfred Kenely, CEO of the Research, Innovation, and Development Trust; Mr. Ian Borg, a senior economist from the Central Bank of Malta; Ms. Riccarda Darmanin, representing the Trade Unions; and Mr. Silvan Mifsud, representing Employer Bodies.  Engaging with a focused audience consisting of MCESD Social Partners, the Civil Service, representatives from various Maltese agencies and departments, local banks and advisory firms, the panel detailed priorities pertaining to the mainstreaming research and innovation in our economy. Topics such as productivity, competitiveness, and the transformative potential of artificial intelligence in a new economy were also discussed.

The tangible insights and recommendations presented at the National Productivity Board conference and also during the important MCESD Council meetings are intended to support the development of a sustainable economic landscape and drive a regenerative and distributive economy focused on human development.

The full version of the National Productivity Report can be accessed here.

The abstract version of the National Productivity Report can be accessed here.

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The ‘Għal Għawdex’ coalition is comprised of the island’s three prominent environmental NGOs – Din l-Art Ħelwa Għawdex, Wirt Għawdex, and Għawdix, together with the Gozo Business Chamber, the Gozo Tourism Association, all the 14 local councils in Gozo and the Gozo University Group.

Joining the social partners at MCESD were the Minister for Gozo, Hon. Clint Camilleri, the Minister for Public Works and Planning, Hon. Stefan Zrinzo Azzopardi, and the Parliamentary Secretary for Social Dialogue, Hon. Andy Ellul.

A highlight of the meeting was a comprehensive presentation by Mr. Godfrey Swain, representing ‘Għal Għawdex,’ which emphasised the urgency to safeguard Gozo from overdevelopment and protect its unique heritage and environment with clear proposals.

The presentation underlined the concerns surrounding Gozo’s potential transformation that may erode its unique charm and appeal. Nonetheless, through collaborative efforts, the seven entities reached a consensus on key issues, resulting in the formulation of an eight-point proposal plan which offers a clear roadmap to address the challenges faced by Gozo’s built and natural environments through direct action and call for action to ensure the region’s specific character and quality to preserve Gozo’s identity and value. Moreover, it strives to envision traditional industries, commerce, and a thriving tourism sector of quality.

The contributions of the MCESD social partners provided tangible reactions and support through their expertise and experience and rallied behind the Gozo Regional Committee’s and Għal Għawdex unwavering commitment to Gozo’s and its residents’ ambitions. Recognising that Gozo is an integral part of the Maltese islands and a prime tourist destination, the discussions underlined the significance of a prosperous Gozo in the interest of the overall national economy.

Hon. Zrinzo Azzopardi, Hon. Camilleri, and Hon. Ellul provided updates on the government’s actions on matters raised and expressed gratitude and appreciation for the Gozo Regional Committee’s dedication to being proactive with proposals for Gozo that benefit all its residents.

The presentation which offered valuable insights can be accessed from here.

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The meeting was attended by the Minister for Public Works and Planning, Hon. Stefan Zrinzo Azzopardi, the Parliamentary Secretary for Social Dialogue, Hon. Andy Ellul, and representatives from the Ministry.

Dr Jeanine Schembri, representing the Ministry, delivered a compelling presentation highlighting the white paper’s key features. Reinforcing the OHSA’s distinct legal personality, the act proposes the formation of the Governing Board that works with the Health and Safety Executive to drive policy developed by the Health and Safety Council in an effort to strengthen governance structure.

The Governing Board assumes responsibility for high-level governance, overseeing financial matters and policy implementation while refraining from executive decisions. Meanwhile, the Health and Safety Executive, led by the CEO, takes charge of implementing the act’s provisions and managing OHSA’s affairs and objectives. The Health and Safety Council assumes the mission of including the social partners’ voices and championing a culture of health and safety in workplaces through policy development.

During the meeting, all social partners including Unions, Employers Civil Society Committee and Gozo Regional Committee, provided valuable insights and reactions to what had been presented. The MCESD served as a platform for meaningful dialogue, fostering collaboration on this crucial matter.

The Minister acknowledged the OHSA’s ongoing efforts to improve its delivery, emphasising the importance of listening to social partners’ recommendations during the MCESD meeting which would then be followed up with a shared converged position.

For more information, the presentation can be accessed here.

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The presentation can be accessed here.

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The presentation can be accessed here.

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Recognizing the consensus on the importance of RDI for productivity, the report aims to gain a deeper understanding of the key drivers and challenges associated with RDI development in Malta. It seeks to provide policymakers with recommendations to address these challenges and foster RDI activities effectively.

The report analyses RDI and productivity on a sector-by-sector level, examining how relevant policies and initiatives can stimulate RDI activities in key economic sectors. The recommendations presented in this report should be considered in the context of the current global economic landscape, including Malta, as well as the fact that Malta has consistently lagged behind its European counterparts in terms of RDI spending and participation.

The full version of the National Productivity report can be accessed here.

The abstract version of the National Productivity Report can be accessed here.

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Present at the meeting was the Justice Minister, Hon. Jonathan Attard, who provided a comprehensive update to the social partners on the progress made in the reform process and the Parliamentary Secretary for Social Dialogue, Hon. Andy Ellul.

Minister Attard emphasised the need for a realistic approach, as certain procedures have drawn dissatisfaction from the general public. During the Council meeting, he highlighted ongoing improvements, particularly in bolstering human resources and making infrastructural advancements, such as expanding the number of courtrooms and renovating the family court and Gozo court.

The Justice Minister also underscored the importance of ongoing studies exploring the incorporation of artificial intelligence into certain systems, a move aimed at enhancing overall efficiency.

A key highlight of the meeting was a detailed presentation delivered by the Law Commissioner, Judge Antonio Mizzi. The presentation focused on proposed amendments relating to various aspects, including the number of cases, burden of proof, witness testimony, prima facie evidence, procedural length, act corrections, early guilty pleas, provisional liberty, measures post-indictment issuance, victim support, transitory provisions, and monitoring and evaluation.

The participation of social partners in the discussion was particularly notable, highlighting their recognition of the reform’s significance for the expected improvement of the national justice system. Their active engagement reflects the MCESD’s commitment to shaping a more robust and equitable future for Malta.

The MCESD remains dedicated to engaging in discussions concerning matters of national importance, such as the Judiciary Reform, alongside its social partners. The active involvement of all stakeholders is vital to the successful implementation of these reforms. Moving forward, the MCESD will continue to foster these dialogues, seeking to incorporate the interests and perspectives of all involved parties.

This Judiciary Reform proposal is understood to be a first step in a number of actions that are expected to improve Malta’s justice system, and the MCESD’s active participation in this reform process underscores the organisation’s commitment to driving economic and social development within the country.

The presentation offered valuable insights into these proposed amendments, sparking in-depth discussions among the attendees, and it can be accessed from here.

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