Malta is expected to spend around €400 million on energy and food subsidies in 2027, as the government pledges to keep fuel, electricity and gas prices stable despite rising international energy costs.Finance Minister Clyde Caruana revealed the figures during the launch of Malta’s Pre-Budget Document for 2027, arguing that the subsidies are shielding Maltese families and businesses from substantial increases.“In just a few months, energy prices have risen very significantly. However, in our country, the prices of fuel, electricity and gas have not changed,” Caruana said.“Malta is the only country that has continued to protect families and businesses from these substantial burdens,” he claimed.According to figures presented by the minister, government spending on energy and food subsidies fell from €242.5 million in 2023 to €188.1 million in 2025, but is expected to surge to €391.7 million in 2026, which Caruana attributed to ongoing geopolitical tensions.Another roughly €400 million is projected for 2027, alongside €75 million earmarked for investment in Malta’s energy infrastructure.Caruana also compared Malta’s fuel prices with nearby Sicily, saying diesel there costs almost twice as much as in Malta while petrol is around 60% more expensive.He said the government has spent €1.35 billion on energy subsidies over the past five years, arguing that Malta’s public finances have allowed it to continue absorbing international price increases.The government maintains that removing the subsidies would have wider consequences for Malta’s economy, including pressure on employment and an increase in unemployment.Meanwhile, Malta’s economy is forecast to grow by 3.7% in 2026. A recent government statement citing the European Commission’s latest forecast likewise put real GDP growth at 3.7% this year and 3.6% in 2027.Caruana said Malta’s unemployment rate stood at 3.5% in July, while inflation was recorded at 2.1%.The Pre-Budget figures also put Malta’s deficit at 2.2% of GDP in 2025, with a projected increase to 2.8% in 2026, while government debt stood at 46.4% of GDP in 2025.The document comes ahead of Budget 2027, which Caruana is due to present in Parliament on 26th October.Do you think Malta should continue spending hundreds of millions of euros to keep energy prices stable?•