Malta will continue to use government subsidies to shield households and businesses from volatile electricity and fuel prices, Prime Minister Robert Abela told European leaders at a regional summit in Dublin, Ireland.
Abela, speaking at the ninth meeting of the European Political Community (EPC)—a forum where European Union (EU) member states and neighboring non-EU countries discuss common challenges—emphasized that keeping energy affordable is just as important as ensuring reliable supplies. “It is not easy to get affordable energy elsewhere in Europe at the moment,” he noted, pointing to Malta’s state-funded price freezes on electricity and fuel as the primary reason local consumers have avoided sharp utility bill increases.
For non-European readers, energy prices across Europe have been a sensitive economic and political issue since supply disruptions pushed up wholesale gas and electricity prices. Most European governments have slowly pulled back emergency cost-of-living support as budget pressures mount. However, Malta—a small Mediterranean island nation and a member of both the EU and the Commonwealth—has kept fixed retail rates in place through public subsidies. While European financial institutions have periodically questioned the long-term fiscal cost of these wide-ranging subsidies, Maltese officials maintain that the policy safeguards economic stability.
Malta is investing in cross-border infrastructure to reduce its long-term dependence on imported fossil fuels. Abela said the government is working with neighboring Italy on a second undersea electricity cable, known as an interconnector, while also exploring a submarine link with North Africa to import renewable power. He welcomed a recent stabilization in global oil prices, though he warned that it is too early to say the wider energy market has fully settled.
Beyond energy policy, Abela used the Dublin gathering—held under the theme “Europe: Strong, Secure, and Connected”—to highlight artificial intelligence and transport links. Instead of placing heavy restrictions on AI development, he advocated for investing in public workforce training so that citizens can use new technologies effectively. He also stressed the importance of keeping air and sea links affordable for island economies as Europe seeks to reduce carbon emissions.
