I understand that it is not easy to re enter politics once you exit. I thought it was going to be a short lived experience, given that I ruled it out back in 2024, right after the MEP elections. However, when the PL presented the manifesto, I realised that it would have been a shame to be left out of what I have been campaigning for – inter alia, affordable housing and aid for those in need. The idea of a 25% interest free loan to cover accommodation is indeed commendable. Certainly, the policies that the PL is currently proposing are designed to address some of the anomalies, as well as those pockets that are not reaping the benefits of economic growth.

When people ask me whether these proposals are sustainable and whether they will add to the country’s debt, the answer must be given in relative terms. This means that if the economy keeps growing, and we address these pockets to improve the quality of life of many, then it is sustainable. We always speak of additional economic growth, but we fall short in asking what it comes at the expense of. Seeing the PL’s manifesto addressing these lacunas and pockets is indeed commendable. True, after the MEP elections, I wasn’t keen on re entering politics. However, my passion to aid people and serve the country, as I did in previous posts before joining the private sector, made me reconsider. Surely, what I campaigned for was simply to stand shoulder to shoulder with families, especially those less advantaged. I am not here promoting laziness. I am promoting what we must do as a state to provide the tools to elevate people. I can express this because I grew up in a deprived environment. Material well being wasn’t the norm. We struggled to make it in life, especially in Bormla and Cottonera. The stigma was certainly untoward and unfair to us. However, when given the right opportunities, we exploited them and moved forward.

My vision is wider, and I want to see the PL’s manifesto executed if the electorate gives Prime Minister Robert Abela another chance. Many observers argue that Dr Abela has demonstrated leadership, keeping Malta afloat through economic storms and geopolitical shocks over the past few years. Surely, having a manifesto that offers a well being index tied to all the policies presented is unprecedented. Commentators note that no other political party has ever achieved such a milestone. This aligns with what I have campaigned for in the private industry, in banking and finance. So, I think it is important to keep pushing these ideas against the backdrop of Malta Vision 2050. One of the proposals I pushed for over the past two years was proper remote working, as well as flexi time. I tied this to improving efficiency in terms of time and reducing emissions. The proposal can help alleviate some of the traffic problems. It is also in line with the EU’s direction on decarbonising the continent.

The PL presented several proposals that aim to help families. When you consider these policies in light of what is happening abroad, one might question their feasibility. However, when seen in isolation and relative to economic growth and public finance management, one realises that it is indeed possible to implement the policies presented so far. What we need to ensure is that the PL clearly explains the policies to the public, as they are doing. My role is to aid the PL in promoting such policies. As you all know, I have never had any problem criticising government policies when needed, and I have been quite blunt and explicit. We need to ensure that whatever is promised to the electorate is executable and well thought out.

What is being proposed on the other side is a different story. I have not been convinced by the energy proposal, which many analysts consider crucial for stability. The solar panel proposal seems half-baked. The refuelling hub proposal is to consider LNG, which is seen as a source of clean energy in transition by 2035. Thereafter, we would need to rethink how to do business. An investment that will take years to realise and become outdated before it is even realised in terms of EU policy direction. Some experts would have considered other energy sources in line with EU policy.

To conclude, what I said this week on TV is that if Dom Mintoff were still alive, he would be shoulder to shoulder with us, campaigning for this manifesto. It is a manifesto that promotes socialist leaning policies. And for this, I must thank the Prime Minister and the PL for listening to us, and to the public, when designing it. Thank you. I am happy to be part of the PL’s formidable team. Let’s do this.

The post Re-entering politics first appeared on The Malta Business Weekly.

My proposal or set of proposals are less costly and more targeted.

As many of you know, I work a lot with family businesses. Family businesses remind me of the infamous speech given by late Sergio Marchionne at the Confindustria Young Entrepreneurs Conference in Santa Margherita Ligure, Italy, on June 9, 2012. In this speech, he famously discussed the balance between “the epoch of rights” and the “sense of duty”. In a family business the “right” to a salary or a position is often secondary to the “duty” of ensuring the business survives for the next generation.

The family business owners are frequently the first to arrive, the last to leave, and the ones who forgo their own “rights” during lean times to protect their employees. Marchionne’s warning that “if we live of only rights, we will die of rights” resonates deeply with family business entrepreneurs because they know that a business cannot be sustained by what it demands from the market, but by the sacrifices and commitment it pours into the business. It is this background and reality I see on a daily basis through various family businesses, that inspires my proposal.

The transition of the ownership of the family business and assets used in the family business, from one generation to the next, often poses a significant financial threat, particularly when substantial fiscal burdens are involved. Recognising this, government has extended a pivotal fiscal incentive, even in the 2026 Budget, allowing for the transfer of business ownership and related property at a significantly reduced stamp duty rate of 1.5%.

This measure aims to bypass the standard 5% duty that typically applies to the transfer of immovable property and the 2% or 5% duty (trading company vs property company) on marketable securities (shares), ensuring that capital remains within the business to fuel growth rather than being diverted to the taxman during a sensitive transition.

Where a business is transferred during the owner’s lifetime (Inter Vivos), the law provides a pathway to this reduced rate under the Duty on Donations of Marketable Securities and Immovable Property used for Business (Exemption) Order.

The 1.5% rate is not universal; it is a targeted incentive for intra-family succession. Qualifying recipients include Spouses and partners in a civil union and descendants in the direct line (children, grandchildren) and their spouses.

With regards qualifying assets for the 1.5% rate, there are two primary asset classes that benefit from this stamp duty reduction i.e. the shares in the family-owned business and the real estate used specifically for the business (e.g., a factory, retail outlet, or office). To qualify, the property must have been used by the business for at least three years preceding the transfer.

To prevent abuse of the system, the law mandates that the recipient must not sell or transfer the family business or property for at least three years following the donation. In the case of property, it must continue to be used for the business for a minimum of three years post-transfer.

Based on all the above, my proposal is made of a number of fine tunings to ensure that family businesses are preserved in the critical juncture of succession. Moreover, whilst I personally preach and advise family businesses to prepare and plan for succession at an early stage, I am aware that there will always be cases whereby succession needs to happen because the unexpected has happened, like the unexpected, sometimes early, death of a family business owner and leader.  Ultimately there is an element of family business continuity that is a public good, regardless of the specific degree of kinship or minor administrative delays. Thus, the goal of my proposals is to ensure that when coming to the legitimate family business transfer there is an established safety net rate for scenarios that currently fall through the cracks.

Currently, if no ‘inter vivos’ succession transfer has taken place and, hence, a ‘causa mortis’ type of family business transfer has to be done, this would not qualify for  the reduced 1.5% stamp duty, but the standard 5% stamp duty rate would apply. My proposal is to have a safety net rate which is higher than the reduced 1,5% stamp duty rate for ‘inter vivos’ transfers and lower than the 5% standard rate. This, in my opinion, would spare  family businesses passing through a tragic situation from being ‘punished’ unnecessarily, without taking away from the more favourable reduced rate of duty for family businesses to plan ahead and go for an ‘inter vivos’ type of succession which, in the end, can bring more benefit to the family business and its future prospects.

Throughout Europe, tax relief for causa mortis (upon death) family business transfers is designed to prevent the fragmentation of small and medium enterprises and ensure operational continuity. Most jurisdictions recognise that high inheritance taxes or stamp duties can drain a company’s working capital, potentially forcing a liquidation or sale to external investors. For instance, Germany offers a robust “business succession” exemption where heirs can receive up to 100% relief from inheritance tax if they continue the business for seven years and maintain specific payroll levels. Similarly, the Netherlands utilises the Bedrijfsopvolgingsregeling (BOR), which provides substantial exemptions—often exceeding 80% of the business value—to ensure that tax liabilities do not jeopardise the company’s liquidity. The United Kingdom recently updated its Business Property Relief (BPR) to provide 100% relief on the first £2.5 million of combined business and agricultural assets, with a 50% relief thereafter. These measures collectively yield significant positive effects: they encourage long-term investment, protect local employment, and foster generational stability. By lowering the fiscal barrier to succession, European states effectively incentivise the survival of the family-owned model, which serves as a cornerstone for economic resilience and social cohesion across the continent. These reliefs ensure that the successor’s focus remains on strategic growth rather than servicing a sudden, massive tax debt during an already difficult period of transition.

Another issue that should also be addressed relates to the transfer of immovable property from the family business to a family member. As a practical example, let’s assume that a family business acquires a new warehouse but as part of the succession plan inter vivos, the owner chooses to pass that warehouse to one of his descendants. Should he choose to transfer the warehouse out of the business and to a family member, such a transfer would be subject to the full 5% duty because they missed the 3-year “pre-transfer usage” window by a few months. My proposal is to at least allow for a pro-rata reduction. If the property was used for less than 3 years but more than 1 year, the duty should be capped at a lower rate of 2.5%, provided the heirs commit to using it for the business for the subsequent 5 years.

In conclusion, the survival of a family business is important as these businesses are the bedrock of our economy, fuelled by family business owners who are fully committed to their business, often sacrificing everything to ensure the security of their employees and the future of their kin. By refining our tax laws to include this reduced duty safety net, we can ensure that we do not dismantle decades of hard work, by supporting the actively trading family businesses who pour their commitment into our community, ensuring that when the torch of leadership is passed, it is not extinguished by a tax burden, but remains a guiding light for the next generation.

The post My proposal first appeared on The Malta Business Weekly.

Last year, as has been the case with other Med resorts, Malta also had an increase in arrivals.  Statisticians tell us there is safety in numbers, yet so far nobody bothers about over capacity.  

MHRA, of late woke up to point out the danger of over tourism and the need for better control on new licenses for hotels.  The island could see an additional 483 hotels crop up if all the planned tourism accommodation projects in the pipeline ever come to fruition.  But who cares.  These facts were shared during the Malta Hotels and Restaurants Association, latest hospitality forum (sponsored by Bank of Valletta) during which a presentation was delivered by Deloitte.

A pivotal aspect was the latest situation of hotel occupancy.  Inter Alia, the study revealed how a vast majority of planned new accommodations (41%) are designed to be 3-star offerings, which means such projects might not necessarily align with the national vision to accommodate “high quality” tourists.  Currently the per capita spend by tourists is a low €15.9 daily.  

At this junction, the reality of hosting a deluge of “hamburger” class arrivals, one may stop and question why are we kicking the can?  Deloitte exclaimed concern about how the incidence of 3-star and other planned accommodations which are set to have less than 100 rooms, throwing into question whether these can survive in the long term. 

Doing the sums, unless they employ more low-wage TCN’s, even new 5-star accommodations may not be sustainable.  For many years, established hotels and other stakeholders in the tourist industry are concerned seeing their share of the cake dwindling.  

This share is diminishing with the planned permits for large scale new builds.  Another MHRA study revealed a shocking message that the island would need to see 4.7 million tourists a year to keep its present occupancy rates afloat.  It is good to remind readers that regrettably we see Comino (with a unique blue lagoon beach) being flooded with day trippers, dirtying its environs, all dancing to loud dance music provided by five licensed kiosks selling spirit imbibed grapefruits.  

Blue Lagoon operators running kiosks, water sports activities, deckchair rentals and other commercial services will likely face higher encroachment and permit fees starting in summer this year.  Speaking on Times Talk last month, the new tourism minister Ian Borg vowed to “clean up” Comino, add sanitary facilities and introduce stricter and fairer concessions for boat, kiosk and deckchair operators.  He felt committed to issue tenders (instead of direct orders as was the previous practice) for all future concessions guaranteeing transparency and fairness.  

Another parallel problem facing the island is over-population which again last summer has led to persistent power cuts (sporadically supplemented by portable noisy diesel generators parked outside residential areas and clinics).  No doubt, such blackouts add to infrastructure pressures resulting from chaotic traffic and sewage issues. 

Sewage blockage issues is a key problem, with stakeholders saying sewage networks are operating “vastly beyond designed capacity in certain key areas” which often results in sewage seeping into the sea.  The consequences of Iran war have targeted Middle East resorts such as Cyprus which is very popular with British tourists.  

Some may consider Malta and eventually add to our over-capacity dilemma.  Can we do something to turn the clock back to serenity?  Yes, just notice how competitors in the central Mediterranean, such as Spain and Venice started a policy to disincentivise excessive tourism in certain periods, in line with the fragility and uniqueness of the resorts.

Needless to remind readers about rallies in the Canary Islands where residents have highlighted problems of over-tourism.  They also increasingly want a better type of tourist: one who respects local culture and nature, not one who drinks cheap beer on the beach and leaves their empty bottle behind with a cigarette butt stubbed in the sand. 

According to tourism researcher and Aalborg University professor Carina Ren, there have always been badly behaved tourists; it’s just that there are more of them now than ever.  

In Spain’s Balearic Islands, renowned for nightlife destinations such as Ibiza and Magaluf, restrictions on alcohol have come into force in a bid to regain control over its disorderly streets.  Moving on, we note how in heavily visited Venice, day trippers now are charged a fee to try to stem the flow of unending visitors.  

Whereas, in Malta citizens simply grumble in silence, regularly air their grievances in social media, yet they never unite and march to Valletta voicing their anger against a noticeable degradation in the environment.  Can we learn from other resorts to live a quieter life and protect our sensitive ecosystem.

A sustainable model requires planning, restraint and the willingness to say ‘enough’ when systems reach their limit.

The post Can we control the tide of tourist arrivals first appeared on The Malta Business Weekly.

The PL presented its first set of proposals the following day, including a 25% government loan of the property’s value to first-time buyers, interest-free and repayable over several years at a fixed rate. This measure is intended to support families with initial payments during their early years. Proposals for affordable housing to counter market speculation, such as those from the Foundation for Affordable Housing, may also be introduced. Another closely watched proposal concerns parental and maternal leave, offering additional weeks of leave to parents, a €5,000 birth bonus per child, and other measures targeted at families. Personally, I do not benefit from these proposals as I do not have children, nor do I benefit from the tax benefits announced during last year’s budget. Nonetheless, I appreciate that these measures were presented, as they seem necessary for the country at this time, even though my taxes subsidise such schemes. Furthermore, I welcome the proposal to increase pensions by €50 per week by the end of the next legislature, resulting in an increase of €200 per month over five years.

In addition, prior to this election announcement, the Minister for Transport launched Malta in Motion, a mass transport scheme connecting a rapid transit system along Malta’s Eastern coast, a bus shuttle service, a water transportation system, and cycling and walking lanes. This proposal aims to improve connectivity, ease congestion, and provide more sustainable travel options. I understand that many people were not amused by the proposal. Compared to the metro system proposal, it admittedly could be more ambitious, yet it remains the most feasible option presented so far. For the past four years, I have argued for connecting all transportation modes on our island, which measures 27km by 15km. The Minister for Finance has been clear. Approval depends on solid financial estimates of the costs, which is a prudent stance since we cannot afford mistakes. My position on social media has been that, by including the private sector and leveraging the budget through private capital, we could avoid funding the entire €2.8 billion from public finances. The remaining amount could be distributed over 15 years. This approach would ease pressure on public resources, and with moderate infrastructure adjustments – since further flyovers seem unlikely – the investment could be manageable if the economy grows as forecast by the European Commission and International Monetary Fund. Encouragingly, there is finally a national consensus that the economy is strong.

Another point, which was music to my ears when I listened to the prime minister, is that the PL’s electoral manifesto appears to be costed and provides a well-being index for the proposals presented. Indeed, the well-being index is highly commendable. Which measurements were chosen, as they are subjective and there are many forms, including the OECD, we still need to see. However, we are moving in the right direction, as this aligns with the Malta Vision 2050. The push, from now on, is to explain the well-being index to the public in layman’s terms, as it is quite subjective and intangible. Certainly, there are enough competent candidates, cabinet ministers, and MPs on the list who can articulate this easily to the public. Not to leave out the authors of the manifesto or those involved. Although it would have been interesting to see the reduction in emissions for this plan aligned with Europe’s decarbonisation strategy. Having a well-being index is already a great step in the right direction. Building on this is something we all aspire to, especially economists working in sustainability. The PL’s proposals so far are focused on family well-being. As time passes, we will see additional proposals announced.

By the time I wrote this article, I had not seen any PN proposals. I will write about them in upcoming opinion pieces. I only followed a press conference outlining what the PL failed to deliver during its term. Well, the Malta Flimkien manifesto was written for five years, not four years and two months. I will give a fair economic assessment of what is good and what is best for Malta from both sides. I was a candidate on the PL’s ticket in the last MEP elections. My allegiance is towards the PL, as I grew up within the party structures. Still, if there are good proposals from the other side or other parties, I will discuss them and state my views. I will also analyse PL’s proposals that I do not agree with.

During a general election campaign, our country must show maturity. I’ve already noticed divisive comments from both supporters, but we are all Maltese with mixed political family ties. Don’t let election fever harm family relationships over petty arguments. Support your party and discuss civilly within your family. Avoid political quarrels, especially among relatives. For now, everyone should remain calm as debates intensify. The PL currently leads in proposals. Perhaps next week, we can analyse the PN’s. Meanwhile, enjoy the election slogans, and I wish all candidates success as they meet voters and serve the people. I have been in that position before. Be honest and follow up on cases, as people are paying attention. If you need my help, I am here. Good luck!

The post A snap election has just been called in Malta! first appeared on The Malta Business Weekly.

With the published accrual-based Government Deficit figure for 2025, the cash based Consolidated Fund Deficit figure published a few weeks ago has shrunk from €824 million to €545 million. How is this possible? The transition from the cash-based Consolidated Fund deficit to the accrual-based General Government deficit involves several significant accounting adjustments required by European methodology (ESA 2010). While the cash figure focuses on the timing of actual payments, the accrual figure reflects when the underlying economic activity occurred.

As can be seen in the below table, the primary and most significant adjustment was the so called “Time-adjusted cash transactions” that added €391.6 million back to the balance by aligning the recording of taxes and social contributions with the period they were earned rather than when they were collected. This large positive adjustment in 2025 indicates that while cash flow can be volatile, the underlying “accrued” revenue—what the government is legally owed—is growing more consistently than cash receipts might suggest. In fact Government revenue as a share of GDP has increased from 33.1% in 2022 to 34.8% in 2025. This indicates that revenue is currently outperforming the general growth of the economy.

Also, as can be seen in the below table also this is the first time since 2022, whereby the accruals based deficit ended up much lower from the cash based consolidated fund deficit, when the accruals adjustments where made. In previous year i.e in 2022, 2023 and 2024, this was never the case.

Thus, so far so good. With a final public deficit of €545 million and a 2025 provisional GDP at 24.53 Billion, we get a GDP to deficit of 2.2%. If the usual revisions are made to the 2025 nominal GDP, the GDP to deficit level could even go further down to around 2%.

As I had been repeating in my articles, considering the constant shocks the global economy is facing, resilience is key. Which is why beyond celebrating this excellent result, I believe we would do well to ensure that this can be preserved whatever comes our way.

The trajectory of Malta’s public finances from 2019 to 2025 illustrates a dramatic shift from a pre-pandemic surplus to a high-expenditure “crisis mode,” followed by a period of aggressive revenue-led consolidation.

Actually, the fiscal landscape can be divided into three distinct phases based on the data. There is first the pre-pandemic 2019 baseline. The period was when we had  a surplus of €67.1 million. Revenue and expenditure were closely matched at approximately 37% of GDP.

Then came the pandemic. As a response, Government expenditure surged to mitigate COVID-19 risks. In 2020, expenditure rose to €5,977.9 million (46.6% of GDP) while revenue fell to €4,677.8 million (36.5% of GDP). By 2021, expenditure peaked at €6,614.9 million.

Post 2021, the government entered a phase of rapid revenue growth. By 2024, revenue increased by €1,216.0 million in a single year to reach €7,784.2 million. By 2025, revenue reached €8,553.8 million, allowing the deficit to narrow to 2.2% of GDP, down from a peak of 10.1% in 2020.

The sustainability of this model depends on the relationship between revenue growth and the cost of maintaining a larger state apparatus. The data confirms that government revenue has, at times, grown faster than the economy itself. For example, in 2024, government revenue as a percentage of GDP rose to 34.6% from 32.0% in 2023. This rose slightly further to 34.8% in 2025. This suggests that revenue increases are not just coming from a larger economic “pie,” but also from more efficient tax collection. While the deficit-to-GDP ratio is shrinking, the absolute level of government expenditure has established a new, much higher “floor.” In 2019, the government spent €4,985.2 million. By 2025, expenditure had ballooned to €9,099.1 million. This 82% increase in spending over six years creates a structural dependency. If revenue growth slows while expenditure remains high due to social obligations or interest payments the fiscal position could quickly deteriorate.

In reality, continuous revenue growth at this velocity is unlikely for several reasons. Government Revenue remains heavily linked to GDP. While Malta’s GDP grew from €13.4 billion in 2020 to €24.6 billion in 2025, any cooling of the economy would immediately slash tax receipts. In 2025, government revenue boosts include “time-adjusted cash transactions” (an adjustment of €391.6 million in 2025) and surpluses from Extra Budgetary Units (EBUs) like the National Development and Social Fund. These may not be permanent fixtures of the revenue stream.

From an economic perspective, no economy can maintain high-percentage growth indefinitely without encountering structural limit. Growth requires labour and infrastructure. This puts the emphasis on productivity growth. If economic growth drops below 4% while spending stays high, the debt-to-GDP ratio will begin to climb again, potentially breaching the 60% limit in the long run. In conclusion, the current fiscal trajectory is sustainable as long as the economy avoids a slowdown or a recession. The larger, higher-spending public expenditure requires a high-octane economy just to maintain its current GDP-to-deficit and GDP-to-debt levels.

The Minister of Finance may be hesitant to commit to massive, multi-year capital projects because the current fiscal stability is built on a “high-expenditure/high-revenue” dependency. If the government locks into long-term, multi-billion-euro infrastructure commitments, it permanently raises the expenditure “floor” even further. Because the current revenue model is so tightly linked to high GDP growth, any cooling of the economy would immediately slash tax receipts while those infrastructure costs remain fixed. This creates a true chicken and egg situation. On one hand, it could be that the Minister of Finance fears that without constant high economic growth, the debt becomes unsustainable while on the other hand without infrastructure investment, the very economic growth required to fund the state’s current size will eventually hit a structural ceiling.

The post Time adjusted cash transactions first appeared on The Malta Business Weekly.

Imagine you are the manager of a football or a basketball team – a good and agile team does not always translate into having all top scorer players. Managers look for players with high potential and a diverse set of skills, with good foundations in terms of agility, ball control, position, shooting capability and speed. It is the diverse range of skills that makes a team comprehensive, and the concoction of skills determines the ultimate outcome of each game.

The workplace is no different. While specialized technical skills are essential, they are now simply the baseline. We might not realise immediately this, however in the age of AI and digital revolution expertise is being redefinedto an extent that emotional intelligence and soft skills are becoming imperative to success. This is predominantly the reason behind PKF Academy’s new portfolio of courses which are aimed at improving emotional intelligence, enhance leadership and employees’ soft skills at various hierarchical levels.

I have once read that emotional intelligence is simply the “operating system” whilst soft skills are simply the “interface” of ourselves; emotional intelligence is our ability to stay in control, regulated and aware whilst soft skills are how we interact and portray the image of ourselves relating to communication, teamwork and presence. Emotional intelligence is what keeps us in control in high-pressure and demanding environments.

A science behind moving up the corporate ladder

The importance of soft skills in a workplace is no news to the business community. As my interest in the subject grew, I’ve come across a study from 1918 by Charles Riborg Mann, published by the Carnegie Foundation. Over 100 years ago, Mann noted that soft skills are critical to the success of every organisation. Studies emphasising the importance of soft skills grew, indicating a growing demand by employers for non-cognitive skills, such as teamwork, problem-solving and decision making.

A more recent study by the Harvard Business Review[1] (August 2025), surveyed over 1,000 occupations across various US industries (2005 – 2019), capturing several skills segregated into foundational and technical skills. The researchers examined how employees’ skills developed across time, over the course of their respective career. The study notes that adaptability is imperative in the modern workplace; and those who fared strong on foundational skills – such as teamwork, empathy) moved quicker into more advanced roles and learn specialised skills quicker. The study goes to show that foundational skills made candidates more attractive for recruitment and determined their ability of how far the employees can climb the corporate ladder. At times, technical skills may become partly redundant over time, but the study suggests that employees who manage to master problem-solving skills, clear communication styles and teamwork tend to fare much better throughout their career.

In the graphic, Deming (2023) from Harvard University and NBER, notes what typical employers look for on resumes, which includes a combination of emotional and soft skills. Out of the 10 skills mentioned, only two can be classified as “hard”, and the rest are typically either a personal trait or evolved over time throughout a professional’s career path.

Rewiring for success

As AI is taking up the routine element of human work, and doing even more heavy lifting, the human elements of managing teams, performance management, interacting and communicating with clients and boards, executive command are all soft aspects which are becoming a professional’s most valuable currency alongside technical skills and competences.

AI is revolving expectations around deadlines and keeping the pressure on. With additional demands, the need for emotional intelligence becomes ever more imperative. Self-awareness, motivation and social skills are critical attributes that allow valuable teamwork and productive outcomes achievable. This is resonated by a plethora of mental health experts in the field, and a growing cohort of industry leaders are recognising that technical proficiency is no longer the sole gatekeeper of professional success. As AI seeks to optimise workflows and work on number crunching, it surely lacks the human touch that one expects to navigate the complexities of high-pressure environments.

At University, we are somewhat taught indirectly the soft skills that are ultimately used across organisations through academic groups, team projects and perhaps even participation in extra curriculum activities. Emotional intelligence is what distinguishes a professional from being a high performer to an impactful leader that is capable to be present in boardrooms, de-escalate conflicts, communicate effectively. That comes with an added responsibility – by fostering self-awareness and empathy, a high emotional intelligence can allow a sound professional not only to regulate its own emotions but also those of people around. Therefore, it becomes an irreplaceable asset and serves a good foundation for effective board or internal meetings, enhanced well-being and effective collaboration across teams. For client-facing individuals this becomes highly useful especially in conflict or disagreement situations with clients. Although we were typically brought up with the culture that the “client is always right”, it is simply more than that. Relying on this mantra may in fact stifle emotional intelligence as it prioritises a transactional win/loss dynamic over a human connection with the aim of resolving an issue. With emotional agility; a professional can recognise when the client is angry and perhaps whilst not right about the facts, the client would be right about their own feelings. It is therefore the ability of identifying the source of the frustration, and without sacrificing own boundaries.

Emotional intelligence and soft skills a are a set of flexible skills that are acquired, realised, practiced and strengthened at any point in a professional’s career. Whilst some individuals are naturally born with a strong emphatic character and a sense of self- awareness, the brain has the capability of rewiring our own natural pathways through intentional practice. As a professional realises self-awareness, self-regulation and social empathy the human brain can consciously change how to respond to stress, listen to others and handle difficult situations.

Miriam Sultana is Head of Advisory at PKF Malta

The post Redifining expertise: Beyond the technical proficiency first appeared on The Malta Business Weekly.

I have written extensively on the traffic problem over the past years. I proposed building underground car parks in the outskirts of towns and villages. Parking spaces have become scarce due to infrastructure upgrades and population growth. We should use dilapidated, unregulated sites for underground parking. This would provide more parking while keeping the surface green, as seen abroad. Many government offices in Valletta could also be used more efficiently. We could explore using Marsa, in line with Chapman Taylor’s vision, to revitalise rundown areas. Such offices could support Marsa’s regeneration and provide walking access to Valletta, reducing traffic and emissions. Valletta’s palaces must be restored to help avoid rental office cost pressures. We must also preserve our UNESCO World Heritage status from over-exploitation. Teleworking and flexible hours are key to lowering emissions and reducing traffic from private vehicles.

Also, we need a serious discussion about how people should commute through new means of transportation. A water transportation system, connected to a tram system might be ideal on the island’s eastern coast. We do not need to dig up Malta to have this executed, because, firstly, we do not have space to dispose of our construction waste – unless we go for land reclamation – and doing so would be quite costly over a long period of time. We should first explore some low hanging fruit initiatives. Whatever is proposed is obviously welcomed. Besides, we might consider short-term measures and ask whether third country nationals need a driving licence to work and live in Malta, given that public transport is free, and perhaps delve further into data on tourists driving in Malta while on holiday. Eventually, I prefer to cap the number of rental cars for tourists per season to reduce emissions and traffic rather than impose it on locals, as some fringe parties have proposed. Traffic has indeed expanded to every hour of the day and every season.

Besides, the electorate expressed their concerns about over-construction. Indeed, I have also written extensively about the right policies to plan and pause some of the construction for refurbishments. The government did listen, as I saw a bit of a push in this area with grants that aid families to refurbish and green their properties. The Labour Congress last week was a good opportunity to listen to delegates and the public. After the MEP elections, I offered to help the PL draft the manifesto. As you know, I grew up within the Labour Party, so it is only reasonable to offer my services. Well, I would have loved to help, and I am still available should they need my services.

One of the reasons I kept this weekly column was to propose economic policies. And I know that many take note of what I write, and at times they use the ideas. Certainly, a policy which I would be happy to see in the upcoming manifesto is the preservation of residential gardens within our towns and villages. We need to revise our planning policies. Surely, the PL in government must stop contradicting itself on this matter. The government, rightly so, is spending millions to green Malta by restoring nature and refurbishing our existing open spaces for our families by planting hundreds of trees. However, in tandem, residential buildings that host mature trees and serve as green buffers between dwellings are being knocked down to make way for rows of flats.

Well, I understand that the PL is trying, through Project Green, to provide green open spaces within 10 minutes of every locality. However, when you arrive from work, after a busy day, and after spending time in traffic back and forth, the last thing you want is to open the window and see a row of blocks of flats and over-construction. If there is a green patch that can be saved within our highly urbanised areas, hosting gardens and mature trees, please preserve them. This can be tied to mental health problems too as part of an integrated approach, and what I have proposed as the right to adequate green space in highly urbanised areas two years ago. People cannot tolerate over-construction any longer, with roads closed for diversions to upgrade our infrastructure and, in tandem, the construction of rows of flats.

When I look at the electorate’s concerns, Malta’s problems seem largely planning-related, which is an irony given the economic success. However, no party in government was ever changed over traffic or construction issues. While the EU faces rising energy prices and economic challenges such as inflation, unemployment, and stagnating growth, I realise how fortunate we are in Malta to have the right government at the right time, with the right economic policies. Still, the government needs to accelerate road infrastructure upgrades. Currently, there are road closures and upgrades in several localities. Residents are not opposed to these upgrades, but their frustration stems from lengthy completion times caused by a lack of coordination among the various entities involved, including Enemalta (for cable upgrades), Water Services (for drainage and water pipes), and other agencies. It is indeed our malaise. Considering that the Marsa Junction was completed in just two years, it is hard to see why resurfacing and servicing a road should take about a year.

Indeed, the PL’s long-standing record and credibility are undeniable. Now, people expect higher-quality services. We must complete infrastructure projects on time, upgrade mass transportation where necessary, and preserve the environment. Over the past 13 years, the PL tripled the economy. We can address these issues today because our economy has grown faster than expected. Without economic growth, we cannot guarantee these services. We have already experienced this process in the 1970s and 1980s. Back then, the PL improved many lives in a very short time, and the electorate demanded higher-quality products. Now, 50 years later, the electorate seeks upgrades not in products, but in services, infrastructure, and the environment. Why? Because the basics are now met, the country is richer, and hence we must address higher-level of needs.

The post Taking note of the electorate’s concerns first appeared on The Malta Business Weekly.

For Malta, the “downside risks” highlighted by the IMF are not merely theoretical – they represent immediate structural challenges.

The IMF notes a critical difference between this crisis and the 2022 energy shock. While 2022 saw a “steep supply curve” where prices could be brought down without a major slowdown, the 2026 supply curve appears much “flatter”. The IMF “reference forecast” now sits at 3.1% for 2026, a downward revision caused largely by the conflict. However, the IMF clearly outlines that if energy infrastructure is significantly damaged, global growth could plummet to 2%, bringing the world close to a recession.

Malta’s economy is fundamentally tied to its “connectivity”. The IMF identifies the direct effect of commodity price increases as a “textbook negative supply shock” that raises the costs of transportation and energy.

For Malta, which relies heavily on imported goods and international connectivity, the following global trends are most concerning. The closure of the Strait of Hormuz and damage to production facilities threaten an energy crisis on an “unprecedented scale” with global headline inflation projected to rise to 4.4% in 2026.

The IMF warns that “energy-importing countries” and those with “weaker tourism and business activity” will suffer most from the conflict’s spillovers. As a Mediterranean island, Malta is highly sensitive to the price of aviation fuel. The IMF notes that the direct effect of commodity price increases raises the cost of transportation. Sustained high fuel prices will lead to increased airplane ticket costs, potentially dampening the tourism boom Malta has been experiencing. Things could get worse if flights get cancelled due to the lack of aviation fuel from certain European airports. Moreover, higher inflation reduces the purchasing power of tourists from Malta’s core European markets, likely leading to reduced “discretionary spending” abroad.

A significant portion of the IMF report focuses on the urgency of rebuilding fiscal buffers. So far Malta has adopted a broad-based energy subsidies to protect households. However, the IMF explicitly warns that such measures are often “poorly designed and very costly for the public purse”. The IMF urges governments to shift from broad caps to support that is “temporary, targeted, and preferably delivered through existing social safety nets”.

To navigate this “profoundly changing economic and geopolitical landscape”, the IMF advocates for policies that are robust across multiple scenarios.

1. Aggressive Energy Diversification: The IMF emphasises that “accelerating energy transition” is a key pillar for energy security. For Malta, reducing dependence on global hydrocarbon transit routes is no longer just a green initiative – it is a national security priority.
2. Rebuilding Fiscal Buffers: Governments are urged to mobilise revenues and reprioritise expenditures to “replenish fiscal buffers for future shocks”.
3. Preserving Price Signals: The report argues that preserving price signals is essential to “transmit a critical market signal of scarcity” and encourage demand reduction.

I was recently following an interview with Economics Professor Steve Keen and I could not stop thinking on economic growth in Malta. Too often, we operate on the assumption that projected economic growth will occur regardless of external developments. However, this insightful interview clearly highlights several global macroeconomic forces that will shape the economic reality of any nation heavily reliant on international trade and energy imports. In this interview Professor Keen emphasises that our global production systems are far more fragile than economists realise. With the closure of the Strait of Hormuz, you have not only an energy choke point but also fertilisers. A war that cuts off a substantial amount of fertiliser supplies doesn’t just raise prices but it creates a physical shortage of food.

Malta, as an island nation, is particularly vulnerable to all this and no local policy can fully insulate a country from this magnitude of global contraction. So while macroeconomic growth may be externally dictated, Professor Keen suggests two ways to regain some degree of local control, for any country. He strongly advises moving away from oil dependency and investing in local solar power to insulate against energy price shocks and shortage and he also suggests that nations should look for ways to produce their own food to create a “bit of insulation” against global chaotic events.

In the view of Professor Keen, economic growth is currently at the mercy of geopolitical stability and resource availability. For a nation to have more control, it must shift away from a “fragile” globalised system towards a more self-sufficient model of energy and food production.

In conclusion, I believe the message is clear. Malta, like any country, needs to move beyond emergency responses toward a “comprehensive policy package”. By focusing on fiscal sustainability, labour upskilling and targeted support to create more supply resilience, Malta can mitigate the “acute macroeconomic trade-offs” that the IMF predicts will haunt the global economy for the remainder of 2026.

The post The 2026 IMF World Economic Outlook first appeared on The Malta Business Weekly.

This has always been an extremely sensitive issue. The fly in the ointment is the imposition of the ETS (Emissions Trading System), which as can be expected is putting Maltese operators at a disadvantage.

Recent estimates by the Central Bank of Malta indicate that the inclusion of aviation in the EU’s ETS results in flights to and from Malta are costing an additional €88 million per year.

New emissions-related costs are increasing the price of importing and exporting goods. Current projections by Atto, The Association of Trailer and Truck Operators, indicates an additional cost of around €700 per container. “Malta, Cyprus and Ireland are fully-fledged EU member states yet, EU policies related to maritime and road transport are not considering the specific disadvantages, insularity and geographical realities of these island states,” says Joseph Bugeja, chairman of Atto.

In practical terms, ETS means higher costs for importers, which are inevitably passed on to consumers. Worse still, these policies are distorting fair competition beyond our shores. Recently published reports showed that shipping routes from Asia to the Mediterranean can save up to €100,000 by bypassing the Malta Freeport in favour of transshipment hubs in North Africa.

Malta is doing its part by investing heavily in expanding Freeport facilities and has been active in setting up “shore-to-ship” provision of electricity. Although the ETS is necessary to help address the impacts of climate change, it is significantly affecting us in a negative way. It undermines not only Malta’s position but also Europe’s broader maritime competitiveness. Atto said one operator has already announced a surcharge, adding €272 per trailer for a round trip between Malta and Genoa. This will be reflected in additional charges, starting at €734 per trailer once the ETS is implemented and potentially rising to €1,006 per trailer over time.

With the ongoing conflict in the Middle East, the partial closure of the Strait of Hormuz and Houthi’s war in the Red Sea points to reduced trade passing through the Mediterranean. These rising costs will inevitably be passed on to Maltese consumers, whereas rising bunker prices are prompting shipping lines and freight operators to review the Bunker Adjustment Factor (BAF) applied to freight rates.

When measuring trailer traffic to Genoa, then multiply a surcharge by the 650 weekly trailer movements, this results in an extra €653,900 per week. The additional costs will ultimately be borne by consumers and thus trigger higher inflation. As can be expected, circa 60% of trailers leaving Malta must return empty to Genoa. These trailers still incur the full surcharges, further amplifying costs.

It needs no further explanation to justify why members of Atto solidly voice their concern. One leading international trailer operator has registered an increase of €14,600 per week in fuel-related costs alone, before additional market adjustments. Considering the geographic isolation of islands, it can be argued that policies designed primarily for the continent disproportionately penalise island states like Cyprus, Ireland and Malta.

Let us now see the other side of the coin. Why is the EU implementing these new policies such as The Alternative Fuels Infrastructure Regulation (AFIR), ReFuelEU Aviation, FuelEU Maritime (often referred to collectively with ReFuelEU as the aviation and maritime fuel initiatives), and the revised Renewable Energy Directive (RED III)? There has been a lot of consultation with EU member countries prior to the launching of such key pillars of Fit for 55 package.

This package aims to reduce net greenhouse gas (GHG) emissions by at least 55% by 2030 (compared to 1990 levels) and achieve climate neutrality by 2050. These measures address infrastructure gaps, demand for sustainable fuels in hard-to-electrify sectors like aviation and shipping, and the promotion of renewable energy. AFIR upgrades the earlier Alternative Fuels Infrastructure Directive (AFID) into a regulation with legal binding, directly applicable as it targets all member states. It entered into force in October 2023 and applied from April 2024. Its goal is to build a dense, interoperable network of recharging and refuelling points for electricity, hydrogen, and other alternative fuels to support zero-emission road transport, shipping, and aviation while minimising oil dependence.

In connection with maritime and aviation rules these introduce obligations such as shore-side electricity supply for larger seagoing ships in ports and for inland vessels and electricity supply for stationary aircraft at TEN-T airports. Fuel suppliers at EU airports must ensure minimum SAF mix in all aviation fuel supplied. Sustainable Aviation Fuel (SAF) refers to drop-in aviation fuels that can be blended with or fully substitute conventional jet fuel (kerosene) while meeting strict sustainability levels.

The SAF content was set at 2% from 1 January 2025, increasing to 6% by 2030, with a sub-target for synthetic fuels starting at 1.2%. In conclusion, climate neutrality became legally binding in 2021, when the European Climate Law entered into force. Unless these rules are fine-tuned, there is a risk that maritime trade may avoid Malta ports and relocate to African countries with less stringent climate regulations, thereby undermining the global EU’s emission reduction efforts.

George M. Mangion is a senior partner at PKF Malta 

The post Islands face higher costs under Emissions Trading System first appeared on The Malta Business Weekly.

Now that we know Peter Magyar won by a landslide, the answer is clear. You can attempt to manipulate democracy, but the electorate draws the line at alliances that run counter to their values. Let’s not forget Hungary’s history. After World War 2, Hungary became a Soviet‑aligned communist state, which unsettled many. The Hungarian Revolution of 1956 was a nationwide uprising against Soviet control and the communist government. It remains one of the most significant anti-Soviet movements of the Cold War, still shaping Hungarian identity. Back then, Western Europe looked away, becoming complicit in the aftermath when the secret police opened fire and triggered wider revolt. Hungarians demanded Soviet withdrawal, free speech, and a new government. Now, Hungarians demanded better governance in a democratic set-up.

Certainly, with Ukraine invaded by Russia and Orban aligning with Vladimir Putin’s foreign policy, this was a significant factor. Hungarians chose freedom in 2004 and reaffirmed that choice. The path to joining the EU is not easy, as it involves rigorous tests and scrutiny. I was there and witnessed this firsthand. Although the EU Commission may be somewhat lenient, the principles of democracy – especially independence of the judiciary and other institutions – cannot be altered. The sentiment that Hungarians did not want to slide back to regime alignment was clear. History teaches us all a lesson.

Besides, the US interference in Hungary did not go well either. In a period where there is a chaotic situation going on in the Middle East, and the surge of gas prices and oil prices because of a war that has the support of the US, this is reminiscent of the economic hardship that Hungary had to endure during the invasion of Ukraine and might once again need to bear due to the interference in Iran. Now we can argue that there are many economic factors stemming from the Ukrainian war, inflation that eroded people’s pockets, and the wrong economic policies of Orban’s government. However, interference from the EU or the US is still interference. And having Vice President JD Vance endorse Orbán in such a chaotic time certainly did not go down well with the electorate, given that many within the Trump administration don’t look favourably on the EU’s modus operandi. Besides, Magyar managed to convince and onboard Orban’s stronghold base in villages to vote for him.

Indeed, many of my readers may disagree with my position, but I have never and will never support Orbán’s government. Orban, during his tenure, demeaned minorities and implemented non‑Western policies that compromised freedom and liberties, especially in foreign policy. The EU stands apart from the US, and the prevailing US narrative about the EU does not resonate with many educated Europeans. While we have always been US allies, recent years have revealed growing cracks in the relationship – originating not in the EU but across the Atlantic. The EU and US operate differently, and US policies and rhetoric – especially recent discourse against minorities – do not resonate with European voters. Despite the EU’s flaws, the bureaucracy and incompetence at the highest echelons of the EU Commission, I would rather live here than anywhere else. Though I often find the President of the European Commission’s approach lacking due to her incompetence, I still prefer the EU’s way of life. Nevertheless, today, the EU must reassess itself, as the rules‑based order is faltering. I am not suggesting that we abandon rules, but clinging to unchanged policies will not serve a democratic Europe.

Now that Magyar has become Hungary’s Prime Minister, we can fairly say that his government will pursue a pro‑EU approach, or at least I hope he doesn’t descend into Orban’s path. To give my readers some background, Magyar is the leader of the Tisza Party, a centre‑right, pro‑European political movement. He was a Fidesz (Orban’s party) insider who later became a strong critic of Orban’s government. Peter campaigned on anti‑corruption reforms, restoring democratic institutions, and strengthening ties with the European Union. Indeed, his campaign achieved a historic victory in Sunday’s parliamentary elections, reaching a two‑thirds supermajority in Parliament. The turnout was also historical, with 77% of the electorate voting.

The EU’s approach to Hungary remains to be seen, particularly regarding EU funds, the new prime minister’s stance on the war in Ukraine, EU assistance on Cohesion funds to keep him in power for the long term, migration, and foreign policy. The next four years will be challenging, especially in restoring Hungary’s reputation abroad, navigating relationships with other governments, and stabilising the economy in a messy world. In truth, Magyar is no outsider, and that’s probably what augmented the victory and allowed him to beat Orban. He was shaped by the Fidesz party within the same political culture and networks that engineered his predecessor. And the way it looks is that he is still deeply embedded in that neo-patrimonial system. His politics aren’t that different either. However, it won’t be wise to pursue Orban’s policies, the same polices that the electorate just dumped in the trash bin of history.

The post You cannot fiddle with democracy! first appeared on The Malta Business Weekly.