VALLETTA (MALTA) (ITALPRESS/MNA) – Finance Minister Clyde Caruana has warned that removing energy subsidies in Malta could trigger an “economic catastrophe.” Speaking at a meeting ahead of the budget, Caruana stated today that Malta is on track to spend €392 million on energy subsidies in 2026, bringing total expenditure over the last five years to €1.3 billion.
According to the minister, fuel prices in March surpassed the peak reached in 2022 and have remained high, while European gas reserves are 16 percentage points lower than levels typically recorded at this time of year. Prices for electricity imported via the interconnector also doubled in March and could rise further, Caruana warned—particularly if conflicts drag on and Europe faces a harsh winter. Government modeling indicates that abolishing subsidies would reduce Malta’s GDP by nearly €630 million over three years and cut consumption by €312 million. More than 3,000 jobs could be lost by 2028, while household disposable income could fall by 6%, the minister explained.
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