Campaign week one: A spending contest unleashed

The election itself was framed by Prime Minister Robert Abela as a necessary step to secure a strong mandate in the face of growing international uncertainty. 

But while Abela has pointed to global instability as justification for early elections, the tone on the ground is one of increased spending rather than caution. 

Both major parties seem committed to upholding the current economic model and are competing on how best to spend the revenue it generates, without any hint of pain or austerity for any segment of society, or any suggestion of taxing excessive profits or wasteful practices. 

In short, increased spending on electoral promises, coupled with a commitment by both parties to uphold current subsidies on fuel and electricity, will depend on keeping the economic engine running at full gear. 

The campaign started with a recognition by PN leader Alex Borg himself, of the strength of Malta’s economy, while insisting that it should be better felt in people’s everyday lives. 

But one remarkable difference was felt in the first days of the campaign.  

While Labour has launched a targeted blitz of proposals aimed at key demographics, focused on leaving more money in people’s pockets across the board in a structured way, the PN’s campaign has been more scattered, subdued, and more focused on capital investments in healthcare, which may suggest a more long-term plan—albeit one that has not been articulated properly, except for an emphasis on prioritising quality of life.  

On the other hand, Labour’s narrative is more robust and well presented: You can trust us, because of our track record, to continue to spend from the revenue generated by an economic model which we designed ourselves, in ways that improve your daily life. 

By contrast, the PN finds itself competing in the supermarket sale bonanza without the same drive or sales pitch. 

MaltaToday looked at some of the key proposals unveiled by the respective political parties during the first week of the election campaign and analysed the strategic thinking behind them. 

PL PROPOSALS  

The Labour Party has focused its early campaign on families, housing, and pensioners, hitting at different demographics with partly costed proposals. 

• Pensions increase: A guaranteed increase of €50 per week for all pensioners over the next five years, including COLA. 

• My First Home scheme: An interest-free loan from the government covering up to 25% of the property value for first-time buyers. 

• New-born bonus: An increase in the birth bonus to €5,000 per child, replacing the current tiered system. €3,000 paid during the seventh month of pregnancy, with the remaining €2,000 after birth. 

• Baby leave extensions: 

Maternity leave: Extended to 26 weeks. 

Paternity leave: Increased to one month. 

Parental leave: Six months of optional paid leave, fully funded by the government and shareable between parents. 

• Gozo connectivity: Free Gozo Channel trips for all foot passengers (Maltese and Gozitan). 

• Student support: A 15% increase in all student stipends. 

• Youth incentives: Complete tax exemption on the first €30,000 for three years for youths entering the labour market or starting a business. 

• Gozo projects: 100 promises specifically for Gozo, including a €45 million electricity interconnector and school modernisations. 

• Malta-Sicily interconnector: A third interconnector to Sicily with a projected cost of €600 million.  

Labour’s proposals remain consistent with its long-standing strategy of supporting household income and consumption. Robert Abela explicitly stated this week that a Labour government would guarantee a social model that cares for its citizens “from the cradle to the grave at every step of their lives,” an approach that underlies the party’s social democratic values but hinges on the performance of a tiger economy. 

The proposals, which range from a commitment to increase pensions by €50 a week over a legislature to a €5,000 birth bonus and expanded parental leave, are paired with housing incentives and youth-focused tax relief.  

The extension of maternity and paternity leave, alongside six months of shared parental leave, reflects an emphasis on work-life balance, while Gozo-specific measures—such as free ferry travel for foot passengers and infrastructure investment—aim to address regional disparities. 

However, the design of these measures reveals certain limitations. While paternity leave is more than doubled, the broader parental leave framework remains gender-neutral in theory but not necessarily in practice. By leaving allocation entirely to the discretion of families, it risks reinforcing existing social norms, where women disproportionately shoulder caregiving responsibilities. Without stronger incentives for fathers to take leave, the reform may fall short of promoting genuine equality. 

Labour’s housing proposals, including a 25% government loan for first-time buyers and additional family incentives, aim to address affordability but risk repeating past patterns in which increased demand support feeds into higher property prices. 

While full official costing documents for the entire 2026 manifesto are still pending publication, Abela has pledged that Labour’s programme will be fully costed and accompanied by a “well-being index” to measure its social impact.  

Preliminary figures, however, provide an indication of scale. The proposed pension increase—€50 per week over five years—represents a commitment exceeding €1 billion in additional expenditure over the period, making it one of the most significant long-term fiscal measures in the package.  

Social policy commitments, including the €5,000 per child birth and adoption bonus, parental leave extensions, and related family supports, are estimated to cost around €120 million.  

Gozo infrastructure projects, including transport improvements and the proposed interconnector, are budgeted at €45 million. Meanwhile, tax reductions targeted at families are projected to leave approximately €160 million in disposable income over three years. Taken together, these commitments reinforce Labour’s focus on household income support but also underline the cumulative fiscal weight of continued expansionary policy. 

PN PROPOSALS 

The Nationalist Party has focused its early campaign on healthcare with several capital projects intended to extend coverage across both islands with partly costed proposals. 

• Healthcare infrastructure: Pledges to build a new hospital in the North of Malta, a new hospital in Gozo, and an expansion of Mater Dei and turning the Paola Hub into a fully-fledged hospital.  

• A National Health Village / Healthcare Park: Proposed to be located at the site of the former Selmun Palace Hotel in Mellieħa this will consist of a dedicated 60-bed facility designed to bridge the gap between hospital care and recovery. 

• Cancer care: All cancer medications to be provided free of charge. 

• Student stipends: An overall 25% increase in stipends for all students. 

• Healthcare students: Stipends for health-related courses to be raised to the level of the minimum wage at €1,000 per month. 

• Parental leave: Proposal to extend parental leave to 28 weeks, fully funded by the government for both employees and the self-employed. 

• Returning healthcare experts: A five-year income tax holiday for Maltese healthcare professionals who relocate back to Malta from abroad. 

• Fit4Life scheme: A €300 grant for youths aged 15 to 24 to purchase a smartwatch to promote healthy lifestyles. 

• Energy prices: A commitment to lower energy bills significantly, with Adrian Delia stating they would be “so low you won't need subsidies”. 

• Maritime sector: Specific maritime-related courses for secondary students and a reform of Transport Malta by splitting its three directorates—land, maritime, air—into three different authorities. 

The PN has struggled to strike a balance between competing with Labour on targeted spending for key demographics—sometimes outspending it, as in the proposal to raise stipends by 25% (compared to Labour’s more modest 15%)—and projecting an image of greater responsibility and vision. 

In the first week of campaigning, the party has focused more heavily on healthcare, partly education, and long-term human capital investment. These include plans for new hospitals in the north of Malta and Gozo, the expansion of Mater Dei, and the development of the Paola Hub into a full hospital.  

The party has also pledged free cancer medication, higher healthcare stipends, tax incentives to attract returning professionals, and the introduction of maritime education in secondary schools. 

One mark of distinction is the PN’s emphasis on mental health reform with a shift towards community-based care replacing institutional reliance at Mount Carmel Hospital. But the proposal falls short of any tangible proposal aimed at integrating psychological therapy for everyone in the national health scheme. 

In education, the PN proposes a 25% stipend increase across the board, with healthcare stipends raised to minimum wage levels. The latter is intended to boost the healthcare workforce in the hope of reducing reliance on foreign nurses, doctors and carers. But with the PN’s vision of expanding the number of general hospitals, it is very likely that the demand for more healthcare workers will still have to be fulfilled by importing foreigners, irrespective of how many Maltese students are enticed to take up healthcare-related studies. 

On energy, it promises lower prices through efficiency gains rather than subsidies, though so far, the mechanism remains largely unspecified. The reference to energy was a reply Adrian Delia gave to a journalist’s question and it is expected the PN will present a more holistic energy plan in the coming weeks. 

When it comes to costings, the PN has valued the expansion of hospital infrastructure, which represents the largest capital commitment, at more than €700 million. And with Alex Borg committing to have the hospitals operational by the end of the legislature that is a whopping capital expense to make on just one sector in five years. The PN’s promise of lower energy prices through efficiency gains and alternative energy investment still needs to be fully presented. 

OTHER PARTIES 

Momentum 

• Minimum wage increase: Raise the national minimum wage to €360 per week, a €139 weekly increase from current levels, to align with the “decent living wage” identified by Caritas. 

• Vacant property tax: Introduce a tax on second and subsequent vacant residential properties. Primary residences, the first vacant property (e.g., summer homes), and rented properties are exempt. Revenue will be ring-fenced for social housing project. 

• Graduates flat tax: A 15% flat tax rate for the first 10 years of work for new graduates with Level 7 or 8 qualifications to retain local talent. 

• Infrastructure fee: Companies with over 30% foreign employees would pay a dedicated fee to support local services.  

• Independent media regulator: Reforming the Broadcasting Authority to remove political party representatives. 

• Local Council autonomy: Diversifying income sources for councils, including a share of traffic fines and Airbnb licence fees. 

• Voluntary sector support: Enabling taxpayers to allocate 0.8% of their income tax to registered voluntary organisations. 

• Constitutional anti-discrimination: Enshrining non-discrimination based on age and disability in the Constitution.  

ADPD 

• Public Integrity Act: A new proposal for a law that would empower the National Audit Office (NAO) to examine the assets of every elected official within 90 days of them taking office. 

• Moratorium on high rises and new hotels: A moratorium to stop the construction of high-rise developments and hotels 

• Taxing extreme wealth: ADPD proposes taxing resource use and extreme wealth (targeting the top 1%) instead of labour to fund universal social services. 

• Decriminalisation of Abortion: ADPD remains the only party formally pledging to remove all criminal penalties for abortion, framing it as a healthcare and autonomy issue rather than a criminal one. 

• Gozo: Scrap plans for an airstrip in Gozo and improve ferry terminals in Mġarr, Ċirkewwa and Valletta 

• Energy: Greater investment in renewable energy production such as solar and wind to reduce Malta’s dependence on imported fossil fuels, while strengthening the electricity grid 

Both the Greens and Momentum have chosen to present a wide range of proposals but struggle with focus and visibility. Both parties distinguish themselves by proposing measures that target the richest segment of the population through fiscal measures. 

The parties have not presented costings but both Momentum and ADPD are the only parties that have included alternative revenue-raising measures to finance public expenditure other than through unbridled economic growth, injecting some sobriety in an otherwise spending bonanza put forward by the two major parties. 

Both minor parties push for greater transparency and institutional reform in a bid to change the country’s governance structures. Unlike Momentum, ADPD has also taken the bold step of advocating for the decriminalisation of abortion, making it the only political party thus far to tackle the taboo subject.