Malta’s Energy Subsidies Expected To Hit €400 Million In 2027, Says Finance Minister

Malta’s energy subsidies are expected to reach around €400 million in 2027, with Finance Minister Clyde Caruana warning that removing this support would have negative consequences for the economy, employment and consumers.

Speaking during the launch of the pre-Budget document for 2027, Caruana said that while energy and food subsidies had fallen from €242.5 million in 2023 to €188.1 million in 2025, they are expected to rise significantly to €391.7 million in 2026 due to ongoing geopolitical tensions.

He said that over the past five years, the Government had spent €1.35 billion on energy subsidies to protect families and businesses from rising international energy prices.

Caruana argued that Malta’s strong financial position allowed it to continue providing this support, adding that the country had kept fuel, electricity and gas prices stable despite increases in global energy costs.

The Minister said that without these subsidies, the Maltese economy would experience long-term repercussions, including a decline in employment and an increase in unemployment.

Caruana also highlighted Malta’s economic performance, stating that the economy is expected to grow by 3.7% in 2026, the highest projected growth rate among EU Member States. He noted that Malta’s unemployment rate stood at 3.5% in July 2026, below the EU and euro area averages.

He added that fiscal sustainability remains a priority, with Malta’s deficit projected to remain below the European Commission’s 3% threshold in 2026, while public debt is expected to remain around 46% of GDP.

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