WATCH | Clyde Caruana and Adrian Delia go head-to-head on public finances

Finance Minister Clyde Caruana and PN finance spokesperson Adrian Delia sparred on the state of government finances and the sustainability of Malta’s economic model during a discussion on Xtra presented by Saviour Balzan aired on TVM. 

While acknowledging Malta’s economic growth, Delia said that wellbeing is a better measure than GDP. 

He raised concerns on governance, alleging a system where public tenders are predictable and direct orders have become widespread. Delia used Project Green as an example of irresponsible overspending, saying that for every euro spent on trees, €240 are spent on marketing.

Delia argued that Malta’s economic expansion is largely driven by population increases fuelled by foreign labour. He warned of the cost of this rapid increase, pointing to what he said are mounting pressures on infrastructure and healthcare services. 

A key point of contention was whether Malta’s economic model is overdependent on foreign workers. When questioned whether certain sectors would collapse without them, Delia argued that government policy actively pursued population growth, pointing to a 30% increase in population. He questioned the need for that increase, citing figures such as 12,000 Y-plate drivers. 

Caruana rejected the premise, arguing that labour demand is a consequence, not a cause, of economic success. Despite the increase in debt, he projected that Malta’s debt levels would return to ratios seen in the mid-1990s by 2030.

He also defended government borrowing during crises, comparing Malta to a patient in need of blood during the pandemic and energy shocks. Discussing energy subsidies, Caruana pointed out that even the European Commission had relaxed state aid rules to allow governments to support households and businesses with electricity costs.

Caruana stayed optimistic, insisting that Malta’s economic performance stands out in a challenging global context. He argued that while investment remains weak in other countries, Malta continues to register growth as a direct consequence of deliberate government intervention.

Delia questioned the government’s credibility, pointing to controversial expenditures such as the hospitals deal, which he claimed cost hundreds of millions without delivering tangible results. He insisted that the Nationalist Party offers greater accountability and more prudent financial stewardship.