Malta’s leading social partners have broadly welcomed the 2026 Budget, describing it as a stable and responsible financial plan that continues to support families, workers, and businesses while consolidating the country’s finances.

Employer and business organisations praised Finance Minister Clyde Caruana’s focus on fiscal discipline, investment, and sustainability, while trade unions highlighted key social measures that address family wellbeing, demographics, and the cost of living.

The General Workers’ Union (GWU) said the Budget shows a strong commitment to families and future generations, calling it both economically and socially sustainable. Secretary General Josef Bugeja said the Budget builds on Malta’s low unemployment rate to “enhance the quality of life for citizens” and create wealth for families, pensioners, and young people. The union welcomed continued subsidies on energy, fuel, and cereal prices, higher pensions, increased family benefits, and tax cuts for parents that will reduce their burden by €160 million a year. It also backed the expansion of the MicroInvest scheme to help private employers raise wages and support ongoing skills training.

The Malta Employers Association (MEA) said the Budget “judiciously balances the country’s social imperatives with measures designed to enhance productivity.” It welcomed progress on reducing the deficit and debt levels, as well as new incentives for AI investment, digitalisation, and innovation, which it said align with Malta’s Vision 2050. The Malta Hotels and Restaurants Association (MHRA) also praised the Budget as balanced and forward-looking, highlighting its focus on sustainability, training, and long-term growth without new taxes.

The UĦM – Voice of the Workers described the Budget as a direct response to Malta’s demographic challenge, noting that several of its proposals had been taken up. It praised new incentives to encourage families to have children and said work-life balance was “just as important as money” for workers to raise and enjoy their families.

The Forum Unions Maltin (For.U.M.) and the Malta Union of Teachers (MUT) welcomed social and educational investments, including digital learning grants, higher stipends, and family allowances, while calling for stronger work-life balance policies and better consultation. The Union of Professional Educators (UPE) was more critical, arguing that the Budget failed to address structural problems in education and broader issues such as environmental and social pressures.

Overall, the reactions show broad satisfaction with the Budget’s focus on stability, families, and fairness, alongside a growing consensus that Malta’s next phase must focus on reform — particularly in education, sustainability, and quality of life — to ensure the country’s strong public finances translate into long-term social progress.