National reform programme 2008-2010 Malta - European Commission

Political Summary
The re-launch of the Lisbon strategy in 2005 has enabled Member States to focus their efforts
towards growth enhancing activities which in turn have created more and better jobs within
the economy. Malta was no exception, and has actively participated in the Lisbon process
through the active implementation of its first NRP.
Three years after launching of the first NRP, Malta has managed to register significant
improvements. Real GDP growth rate has increase by over 2 percentage points in 2007
when compared to 2004. In addition, General Government Deficit has decreased to 1.8%
which is significant when compared to 2004 figures whilst also permitting Malta to join the
Eurozone in January 2008. Malta’s drive towards the implementation of its NRP has
contributed towards the achievement of a higher employment rate which increased by over 2
percentage points [1] and stood at 55.2% as at June 2008 and a complementary decrease of
1% in the unemployment rate when compared to 2004.
The NRP subscribes to Malta’s Vision 2015 of “a dynamic, high value-added economy
founded on competence, skills and excellence and capable of sustaining a high standard of
living for its entire people.” In terms of the strategy to attain this vision, the Government
aimed at having a well-diversified and productive economy that uses all its available
resources effectively to generate economic and social well-being for all. Special focus will be
dedicated to the six sectors highlighted by Vision 2015, namely: the creative economy and
especially ICT; the financial services sector; tourism; high value-added industry and services;
international educational services; and health services. In order to get there, a number of key
fundamental elements that would contribute towards increased national productivity and
competitiveness were identified.
Over the last three years, the Maltese Government has committed itself to further stimulate
the economy by shifting its role from operator to regulator. Within this context, Government
has privatised a number of state-owned entities in various sectors including: ports, postal
services and yacht marinas. This not only ensures a more focused role for Government but
also stimulates the economy by offering additional business opportunities, strategic
partnerships and an improved service to customers.
Concurrently, public and private investment in infrastructure and productive capacities has
been encouraged, whilst keeping environmental considerations in mind. The support of
enterprise and the creation of an entrepreneurial culture in order to create a more dynamic
and flexible economy with an increased capacity to adapt to change has been pursued.
Government is focusing more on creating the right environment for businesses to invest and
grow. Competition and flexibility in our markets in order to improve our economy’s capacity to
adapt to changing trends and developments and the delivery of public services has improved.
Investment in research and innovation in order to sustain the creation of a high value-added,
technology-intensive and knowledge-based economy has increased.
Tourism is one of the main pillars of the Maltese economy. Investing in the tourism sector is
deemed as a major contributor towards Malta’s competitiveness. Government has continued
to promote the cruise liner shipping industry whilst also moving towards the introduction of low
cost carriers with a view to expand the tourism sector. The actions pursued within the first
cycle of the NRP have contributed towards the improvement of the tourism package. In fact
an increase of 7.41% has been registered in inbound tourism in 2007 when compared to 2004.
Malta’s most valued resource is its human capital. Hence, Government will continue
increasing its investment the education and training fields. Efforts to reduce the number of
early school leavers and increase the level of education especially at the tertiary level will
continue to be sustained over the next cycle. It is envisaged that Malta’s educational
infrastructure will continued to be transformed in such a way as to offer all citizens the
opportunity to improve themselves and avoid anyone being left behind.
[1] Increase has been registered between Q2 2004 and Q2 2008.
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