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Malta’s recovery and resilience plan

RRF FUNDED PROJECTS IN MALTA

WHAT’S IN THE PLAN?

Country snapshot

Country snapshots

Malta’s country snapshot

The country snapshot illustrates some of the most iconic and impactful projects included in the Maltese Recovery and Resilience Plan that will bring positive change for EU citizens, businesses and the EU at large.

The reforms and investment in Malta’s plan are helping it become more sustainable, resilient and better prepared for the challenges and opportunities offered by the green transition and digital transition. Following Council approval of Malta’s plan on 5 October 2021, Malta’s recovery and resilience plan was updated on 14 July 2023 to introduce measures that address REPowerEU objectives.

€336 m*
Value of the plan
€328 m**
RRF Grants
-
RRF loans

*This value includes also the part of the plan which is financed with national resources.
** This value includes the transfer from the Brexit adjustment reserve requested by Malta and Malta’s REPowerEU grant.

  • 16 investment streams and 31 reforms 
  • 68.8% of the plan will support climate objectives 
  • 26.2% of the plan will foster the digital transition.    

The transformative impact of Malta’s plan is the result of a strong combination of reforms and investment which address the country’s specific challenges. The reforms address bottlenecks to lasting and sustainable growth by strengthening the rule of law and the fight against corruption, while investment is targeted at the green and digital transitions, as well as tackling challenges related to health and skills. 

All measures have to be implemented within a tight time frame, as the Regulation establishing the Recovery and Resilience Facility requires all milestones and targets within the national plans to be completed by August 2026

REPowerEU measures in Malta’s plan

Malta’s plan now includes one reform and one investment to reduce its reliance on fossil fuels, in line with one of the REPowerEU Plan's objectives.

To finance this increased ambition, Malta has asked for a share of its Brexit Adjustment Reserve to be transferred to the plan, amounting to €40 million. These funds would be added to Malta's REPowerEU grant of €30 million.

Key measures for REPowerEU

The REPowerEU measures include a reform of the permitting system for renewable energy projects and a EUR 70 million investment in the electricity grid.

The reform will help accelerate procedures for granting permits for renewable energy projects and introduce an obligation to install rooftop solar panels on certain new buildings. 

The investment will strengthen and expand the electricity grid and distribution services, while also building centralised battery storage capacity. 

Together, these measures are expected to increase Malta’s share of renewable energy and accelerate decarbonisation of energy generation, building and transport sectors.

Green transition

In the area of climate and environmental policies, Malta’s challenges include the need to reduce greenhouse gas emissionsdecarbonise transport and reduce congestionmake the building stock more energy-efficient and improve waste and water management.

Key measures for the green transition

  • The plan supports the green transition through the large-scale electrification of road transport
    • An investment of €60 million will promote the purchase of zero-emission electric vehicles for the public and private sector. 
    • The purchase of 102 electric buses for public transport for €34 million and a reform granting free public transport to more than 100,000 Maltese citizens will boost the use of public transport and help address congestion. 
  • A large-scale energy-efficiency programme for public schools, hospitals and offices, as well as private buildings worth €52.2 million will lead to a sizable reduction of greenhouse gas emissions. 
  • Malta’s recovery and resilience plan includes important measures to improve waste management, including with regard to construction and demolition waste.

The modified plan, including the REPowerEU chapter, has further strengthened the focus of the plan on the green transition, devoting 68.8% of the available funds to measures that support climate objectives (up from 53.8% in the original plan). 

Digital transition

Digital challenges for Malta include differences in digitalisation between large and small enterprises, as well as digital skills shortages and mismatches.

Key measures for the digital transition

Malta’s recovery and resilience plan supports the digital transition with investments and reforms in the public and private sectors. 

  • Investments into digitalisation of the public administration and public services (€34 million) to strengthen the government’s IT systems and enhance digital public services. 
  • Investments in the digitalisation of at least 360 companies, in particular SMEs (€15 million)
  • Reforms include the adoption of Malta’s Digital Strategy 2021-2027, which aims to reduce the digital divide, notably by supporting families with low income to get connected and have access to computers, and to promote digital skills.

The modified plan has further strengthened the focus of the plan on the digital transition, devoting 26.2% of the available funds to measures that support digital objectives (up from 25.5% in the original plan). 

Economic and social resilience

Key challenges with an impact on Malta’s medium-term economic performance include a shortage of skilled labour, challenges related to an ageing population, and weaknesses in the regulatory and supervisory framework, which prevent businesses from taking full advantage of the opportunities offered by the green and digital transitions.

Key measures in reinforcing economic and social resilience

The plan contains a set of reforms and investments that reinforce economic and social resilience. 

  • It includes crucial reforms to strengthen the judiciary’s independence, to address some features of the tax system that facilitate aggressive tax planning and to strengthen the institutional framework in order to fight against corruption and money laundering
  • Reforms aim to strengthen early school leaving intervention and prevention measures, expand guidance and opportunities for upskilling and reskilling for all adults, and in particular for the low-skilled, and enhance quality inclusive education for pupils with special needs. 
  • An investment in the Blood, Tissue and Cell Centre is expected to strengthen the resilience of the national health system by providing services for which patients previously had to travel abroad.

ANNUAL EVENTS

EUROPEAN SEMESTER

Malta’s plan is consistent with the challenges and priorities identified in the European Semester, the annual cycle of coordination and monitoring of each EU country’s economic policies. For a detailed explanation of the European Semester see the following link: The European Semester explained | European Commission (europa.eu)

DOCUMENTS