Friends of the Earth Malta (FoEM) said that Budget 2027 has stirred various opinions and concerns. While some of its measures could be beneficial, several other aspects are ”extremely concerning, including that the budget reflects a populist approach that scapegoats a specific demographic group.”
As a socialist environmentalist NGO, FoEM said that it is concerned by the ”populist, right-wing approach towards Third Country Nationals (TCNs), a term that is itself politically problematic), which suggests a colonialist and apartheid-like mentality.”
It added that ”climate action and renewable energy appear to be missing from the discussion, whereas the climate crisis is in full force, alongside other pressing environmental issues that Malta is currently facing.”
Let’s start with the positives,” the NGO said. ”The introduction of a higher eco-tax is a step in the right direction, particularly the eco-tax imposed on tourists visiting Comino.”
On a related note, FoEM welcomed the annual increase in taxes on leisure yachts, which aligns with the concerns raised in its recent Save Our Shores campaign. ”However, there needs to be greater transparency regarding how this tax revenue is going to be used, especially given the toll that overtourism and the maritime industry have taken on Malta’s social and environmental fabric.”
FoEM, therefore, posed the following questions: Will these taxes be used to improve waste management, to protect Comino as a Natura2000 site, to conserve and regenerate damaged natural habitats, and to safeguard Malta’s environment, to mention just a few priorities?
FoEM repeated its demand for an urgent revision of Malta’s energy and fuel subsidies, transforming them into progressive subsidies which protect people from energy poverty while moving away from subsidising fossil fuels. ”The budget continues on the unsustainable path of subsidising fossil fuelled energy and fuel use, which encourages private car use instead of discouraging it, and lacks a plan for the phase out of fossil fuels and fossil fuels subsidies.”
At its core, FoEM said it is a socialist NGO apart from an environmentalist organisation. From this perspective, the organisation said that it is ”deeply concerned by how Budget 2027 is, quite literally, throwing TCNs under the bus. FoEM has already issued a joint statement with Moviment Graffitti, Rota and Solidarjeta, strongly opposing the unjust treatment of TCNs in relation to public transport.”
One of the concerns raised about this approach was that it could lead to greater reliance on privately owned cars. FoEM said that, ”however, it now appears that TCNs are also required to pay a monthly fee of €83 to retain their driving licences. These measures will not resolve Malta’s road traffic and infrastructure problems. Instead, a holistic approach that prioritises safe cycling lanes and investment in alternative modes of transport, including dedicated bus lanes and increased bus travel capacity, is needed.”
TCNs who have been residing in Malta for less than five years will be required to pay for childcare, while work permit fees have increased by at least €200. ”It is important to note that none of these measures apply to expatriates from EU Member States or British nationals who arrived before Brexit regulations. Targeting a specific demographic that is often already at a social and economic disadvantage is colonialist in principle, and also deeply ironic given Malta’s own colonial history,” FoEM stated.
The NGO stressed that ”in the long run these measures will not deliver any meaningful positive economic impact. Meanwhile, corporation tax will go down from 35% to 25%. While SMEs operate under different circumstances from major multi billion-euro corporations, there is a stark disparity in how different groups are treated. This raises questions about the priorities underpinning the budget and whether its measures genuinely serve the wider public interest.”
FoEM warned that ”Budget 2027 reflects a populist approach that scapegoats a specific demographic group while failing to address the socio-environmental and economic challenges Malta is currently facing. This is particularly troubling given Malta’s colonial history, during which the Maltese themselves experienced disadvantage under British rule, as well as the experiences of many Maltese people in the diaspora who left the island in search of the better future they had been promised elsewhere.”
It concluded by saying that ”on the other hand, the budget offers very few measures to support working-class individuals and families, or a more just and sustainable economy. It is equally ironic that these measures are being introduced by a party that prides itself on its socialist roots, yet appears to be increasingly leaning towards far-right politics.”
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