Malta energy subsidies exceed COVID-19 costs, Finance Minister says

Malta’s Finance Minister Clyde Caruana has stated that energy subsidies have cost the nation approximately €1.35 billion, a figure exceeding the €800 million spent on COVID-19 related measures. Caruana noted that the government expects to spend around €400 million on subsidies this year and another €400 million next year to shield households and businesses from international energy price volatility.

Regarding labor and inflation, Caruana indicated that the cost-of-living adjustment (COLA) is expected to be approximately €5 per week in 2027. The final figure will be confirmed following the release of the Retail Price Index and the unveiling of the 2027 Budget on October 26.

In terms of social indicators, Eurostat data reveals that Malta has one of the lowest rates of youth housing overcrowding in the European Union. In 2025, only 7.7% of Maltese citizens aged 15 to 29 lived in overcrowded households, ranking the country third-lowest in the EU, significantly below the EU average of 26.9%.