Malta remains opposed to EU-wide taxes, Abela tells parliament

Prime Minister Robert Abela stressed that the EU cannot introduce bloc-wide taxes to sustain its upcoming budget, reiterating Malta's opposition to any such move.

He was addressing the Maltese parliament for the first time in the wake of the EU leaders' summit held in Brussels last week.

Abela defended Malta's long-held belief in fiscal sovereignty, which he insisted must remain the sole competence of individual member states. He told parliament Malta will not accept the introduction of any EU-level taxes designed to sustain the bloc's spending.

There have been several proposals floated at EU level to finance the next budget, including gambling taxes and digital levies. At the European Council meeting last week, EU leaders kicked off the difficult talks that will eventually lead to agreement on the next EU budget framework. However, countries are split between those referred to as Friends of Cohesion, which include Malta, and the frugals that oppose higher spending on cohesion policy.

Abela noted that the EU’s cohesion policy must remain a vehicle for progress, development, and the strengthening of the bloc's competitiveness. He told parliament that he participated in a high-level meeting with the Friends of Cohesion group to coordinate a message ahead of broader budget discussions.

He argued that the European budget should reflect the aspirations of citizens and drive reforms that are realistic and rooted in national interests. Crucially, he noted that any such reforms must be carefully planned through discussion rather than being imposed.

The prime minister expressed confidence that the government's experience and competence would allow them to secure another positive result for the country as negotiations intensify in the coming months.

The discussion on competitiveness also touched upon energy stability, which, he remarked, remains a major concern for many European leaders facing high prices and market volatility. Abela contrasted this with Malta’s position, mentioning a newly concluded agreement with BP for the supply of LNG. 

On a broader scale, Abela said the EU’s response to global macroeconomic imbalances must be measured and aligned with international trade rules, emphasising the need to stay open to trade rather than becoming isolated.

Abela also addressed the ongoing progress in migration policy. Participating in an informal coordination meeting with 15 other Member States, Abela noted that tangible results are finally emerging after 18 months of intensive work. 

He pointed to the adoption of the revised Return Regulation as an achievement and stressed that this progress must be supported by rapid implementation and adequate funding.