Malta’s Debt Continued To Reach Record Levels In 2025, Says PN

Recent figures published by the National Statistics Office confirm that Malta’s national debt reached a record €11.4 billion by the end of 2025, highlighting growing concern about the country’s public finances, said the Nationalist Party in a statement.

The increase represents a rise of €776 million in just one year, up from €10.6 billion at the end of 2024. This sharp climb means that the burden now equates to more than €28,200 for every Maltese and Gozitan citizen.

The figures come as Clyde Caruana outlined the Government’s intention to return to a budget surplus by 2029. According to his projections, Malta could balance its books within three years. However, this optimistic outlook contrasts with the latest data, which shows that the country registered a deficit of over €545 million in 2025.

Malta also remains under the European Union’s Excessive Deficit Procedure, a mechanism triggered when a member state exceeds agreed fiscal limits. The country was placed under this procedure in July 2024, and although earlier statements suggested a swift exit, it is now expected that Malta will only leave by next summer, later than initially anticipated.

Criticism has also focused on Robert Abela, with claims that the current administration has accumulated more debt than all previous governments combined. Projections indicate that debt could exceed €14 billion by 2028 if current trends persist, further intensifying concerns about long term sustainability.

Rising debt levels are already having tangible consequences. Interest payments on government borrowing are increasing significantly, with projections suggesting that Maltese taxpayers could pay between €340 million and €350 million in 2026 alone. This equates to nearly €1 million per day, placing additional strain on public finances.

These developments come against a backdrop of broader national challenges, including rising living costs, infrastructure pressures, traffic congestion, environmental concerns, and growing demand on healthcare services. Critics argue that continued borrowing, combined with increasing expenditure, risks deepening these issues rather than addressing them.

Looking ahead, the Government maintains that its fiscal strategy will stabilise the situation over time. However, with debt continuing to rise and economic pressures mounting, the coming years will be crucial in determining whether Malta can successfully restore balance to its public finances while meeting the needs of its citizens.

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