VALLETTA (ITALPRESS/MNA) – The Malta Fiscal Advisory Council (MFAC) issued a stark warning to the Maltese government about the need for fiscal prudence and a strategic approach to energy subsidies.
In its assessment of the Half-Yearly Report for 2024, the council’s recommendations come at a critical time as Malta grapples with excessive deficit procedures initiated by the European Union and ahead of the 2025 Budget speech.
In its report, the MFAC reiterated its call for the Maltese government to devise an exit strategy for its fixed-energy-price policy.
This policy has cost Maltese taxpayers approximately 320 million annually. The council’s stance echoes similar appeals from the European Commission and the International Monetary Fund.
The MFAC acknowledged that the energy subsidies have helped stabilise costs for consumers, however, it emphasised that they pose a significant strain on public finances and risk exacerbating the country’s fiscal deficit.
Moreover, the council pointed out that the current policy lacks incentives for energy conservation and efficiency improvements, running counter to Maltàs goal of achieving carbon neutrality and promoting a green transition.
The Maltese government expects to spend up to 160 million on energy subsidies in 2025, representing 0.7% of GDP. However, the MFAC insists that further reductions are necessary to ensure long-term fiscal sustainability.
-photo Agenzia Fotogramma-
(ITALPRESS).
