Abela opposes EU-level taxes in bloc’s next budget

Prime Minister Robert Abela has opposed the introduction of EU-level taxes under the bloc’s next budget, insisting that taxation should remain within the discretion of national governments and parliaments.

Abela made the remarks during the MED9 Group Summit in Croatia, held a week before EU leaders are set to meet in Brussels to discuss the bloc’s next long-term budget, the Multiannual Financial Framework (MFF) for 2028–2034.

Together with Malta, MED9 comprises Croatia, Cyprus, France, Greece, Italy, Portugal, Slovenia, and Spain.

According to a government statement, the summit provided an opportunity for the countries to discuss key issues, including the EU budget and the geopolitical situation against which it is being negotiated.

At the end of the summit, the leaders adopted a joint declaration reflecting their agreement on the issues discussed.

The European Union’s next budget

During the meeting, Abela insisted that the EU’s next budget must take into account the real and lasting challenges arising from geographical factors, particularly developments in the Middle East and Eastern Europe.

For Malta, he said, reliable connectivity, affordable energy, and resilient infrastructure are essential economic necessities.

Abela explained that every member state must be able to contribute to European competitiveness in order to strengthen the Single Market.

In this context, he argued that the Mediterranean must be treated as a priority in the EU’s next budget, describing it as a region where security, trade, energy, and climate resilience converge.

He underlined that decisions affecting the Mediterranean have a direct impact on Europe as a whole and that the allocation of resources in the upcoming budget must therefore reflect the region’s specific needs.

Abela also stressed the importance of balancing new priorities with traditional ones, such as cohesion policy, agriculture, and fisheries, which he said are becoming increasingly relevant.

The prime minister reiterated that Malta would continue to take a constructive approach towards identifying new sources of funding, while maintaining its opposition to the introduction of EU-level taxes.

Energy prices

Abela also addressed concerns over instability in the Middle East and its impact on energy prices.

The energy crisis has persisted throughout the summer as the war in the Middle East continues into its third year.

The prime minister highlighted the Maltese government's commitment to maintaining stable energy and fuel prices to safeguard the country's economic stability.

As for the EU's approach, Abela stressed that its energy policy must not place families and businesses at a structural disadvantage.

Migration

The MED9 countries also discussed migration, with Abela stressing that the EU must renew its efforts to build stronger relations with the African continent.

While acknowledging the continued importance of developments in Eastern Europe amid the Russia-Ukraine war, Abela said the EU must pay equal attention to its southern neighbours.

He called for a stronger EU presence in key partner countries such as Libya, with closer cooperation extending beyond migration to include energy, climate change, security, and investment.

Climate change

The prime minister also stressed the need to balance the EU's climate goals with its economic competitiveness.

Abela explained that while the EU must remain committed to achieving its green transition targets, it must do so without undermining connectivity, which remains crucial for Malta.

He also referred to the Emissions Trading System (ETS), acknowledging the importance of further decarbonisation while insisting that such measures must not place island states like Malta at a disadvantage.

The MED9 leaders adopted a joint declaration reflecting their agreement on the issues discussed (Photo: OPM)

Also attending the summit were Prince Albert II of Monaco, Crown Prince Al Hussein bin Abdullah of Jordan, European Commission President Ursula von der Leyen, European Council President António Costa, and European Commissioner for the Mediterranean Dubravka Šuica.