Prime Minister Robert Abela said Malta’s commitment to neutrality has been the foundation of its economic success.
“From being dependent on one sector, unfortunately, that of defence, we have become one of the most diversified economies in the world,” Abela said during an address at a political event on Sunday.
This event was held as Malta is set to celebrate the 46th anniversary of Freedom Day, on the 31 March.
Prime Minister Abela spoke on the role of “visionary leadership” in Malta’s economic success, highlighting the contributions of former prime ministers like Dom Mintoff, who introduced foreign investment and manufacturing, and Karmenu Mifsud Bonnici, who initiated significant infrastructural projects.
He also said that when in Brussels for a meeting with EU leaders, he managed to secure guarantees for government to decide how it wants to spend public funds.
During the event, which was moderated by journalist Reno Bugeja, at the Interpretation Centre, in Mtarfa, Minister for Finance Clyde Caruana, Minister for Economy Silvio Schembri and Labour MP Cressida Galea also spoke.
Caruana emphasised that Malta’s economic empowerment is a classic example of how a country can economically liberate itself, “Malta’s economic development is a classic example of how a country can economically empower itself. The recipe adopted by Malta has been successful.”
He noted that “political independence was not enough, economic freedom was also crucial.”
Those early years, Caruana said, were marked by attempts to develop tourism and manufacturing, which faced setbacks due to a lack of skilled labour. However, Labour governments focus on education and investment laid the groundwork for future success, he said.
Caruana emphasised that Malta achieved industrial development in just 20 years, unlike other countries where it took centuries.
He also noted the Labour government’s primary achievements were educating the population and creating opportunities for investment.
Silvio Schembri, Minister for the Economy, distinguished between territorial and economic independence, noting that achieving economic independence requires control over economic policies, “To have economic independence, you need to control your economic policies and not be dependent on external economic activities.”
Schembri highlighted the economic transformation under Labour governments, especially in the 1970s and 1980s, with diversification in various industries. He also noted that EU membership, while beneficial, resulted in the loss of monetary policy control, requiring Malta to adapt its economic strategies.
Schembri emphasised that recent economic growth under the Labour government from 2013 onwards has been significant, increasing GDP from €7 billion to €23 billion.
Prime Minister Robert Abela also underscored the importance of prioritising social welfare and investment in the population, noting that investing in pensions and social services is a strategic investment that circulates back into the economy, supporting families and businesses.
Abela concluded by emphasising the importance of maintaining Malta’s neutrality and continuing to invest in its people, ensuring a peaceful future for generations to come.