(Commonwealth_Europe) A recent report by the International Monetary Fund (IMF) suggests that Malta needs to take decisive action to reduce car usage in the country. Released in February, the report outlines several key measures that could alleviate the growing strain on Malta’s infrastructure, particularly due to congestion. These measures include raising fuel prices, increasing vehicle taxes, and introducing charges for public parking spaces. The IMF argues that such steps would help tackle the increasing challenges Malta faces in its transportation system.
Despite these recommendations, the report acknowledges that the Maltese government currently has no plans to implement these proposed measures. The report, titled Taking Stock of Infrastructure in Malta, was authored by Alexander Pitt, a senior economist in the European Department of the IMF, who also participated in a workshop held at the Central Bank of Malta.
While the report commended Malta’s strong economic performance over the past decade, it pointed out that the rapid population growth and the increase in tourist arrivals have put considerable pressure on the country’s infrastructure. This strain has been particularly evident in the form of severe traffic congestion. The IMF noted that Malta’s small size and relatively dense population resemble conditions found in several small- to mid-sized Central European cities, which typically have well-developed public transportation networks, including buses and trams. In comparison, Malta’s public transport system relies heavily on buses, and although the fleet is relatively large, it struggles to cope with the growing demand due to traffic congestion and long travel times.
The report also noted that a significant portion of Malta’s land area is artificial, primarily composed of buildings and roads. As a result, although car ownership in Malta is similar to the Balearic Islands and the European Union as a whole, the number of cars per square kilometer of developed land, where most traffic occurs, is twice that of the Balearic Islands. The IMF compared this to Singapore, a city-state with a similarly high proportion of artificial land cover. Despite this, Singapore has significantly lower car ownership, thanks in part to its well-established and extensive public transportation system, which includes buses, metros, and light rail. The report suggests that a shift toward increasing the availability and use of public transportation, like Singapore, could be part of a solution to the congestion problem.
One of the key points made in the report was the success of Malta’s free public transport system for residents. Malta’s bus fleet is relatively large, with one bus available for every 200 people—more than twice the number available in the Balearics. However, despite these advantages, public transportation usage in Malta remains limited, primarily because of long travel times and the impact of congestion on bus services.
While the Maltese government has announced some measures to ease congestion, such as improving traffic flow management throughout the day and introducing express bus lines, the IMF suggests that more decisive action is needed. The report argues that reducing car usage in Malta will likely require an increase in the cost of driving. Such measures could involve raising fuel prices, increasing vehicle taxes, and introducing charges for public parking spaces. However, the government has clarified it that it does not currently intend to pursue these policies.
The report also raised concerns about the effectiveness of expanding the road network as a solution to traffic congestion. Malta’s road network is already very dense, with nine kilometers of road per square kilometer—21 times as many as the Balearics. While additional roads might temporarily ease congestion, the report notes that in many countries, expanding the road network often leads to an increase in car ownership and usage. Consequently, congestion tends to return soon after the new roads are built. Instead, the report suggests that a rail-based public transport system could offer a more sustainable solution. However, such a system would come with high costs and geographic limitations. For instance, while a metro system could be an effective alternative, it would require substantial investments, amounting to about 34% of the country’s GDP, although these costs could be spread over 15 to 20 years. Similarly, a tram network, although more efficient than buses, would require space for tracks, which would likely need to be placed on the surface to keep costs manageable.
The IMF identified transport as the sector in which urgent action is needed to address congestion, even though the costs of implementing a long-term solution would be high and the process would take time. In this context, the report suggested that pricing measures, such as raising fuel taxes, increasing vehicle taxes, and introducing parking charges, would be helpful in the short term.
The report also touched upon other infrastructure sectors in Malta, such as energy, water supply, and wastewater. While the current capacities for power and water supply are deemed adequate in the short term, the report emphasized that investments would be necessary to enhance them in the medium term. The IMF also noted that the launch of Vision Malta 2050, a strategic development plan, could present an opportunity to outline a comprehensive, long-term development strategy. However, such a strategy would need to address the investment needs and costs associated with these initiatives.
While Malta’s economic performance has been strong, its infrastructure is under considerable strain, particularly in the transportation sector. The IMF’s report stresses the need for decisive action to reduce car use, improve public transport, and manage congestion. While measures like raising taxes on vehicles and fuel may be politically challenging, they could play a crucial role in easing the pressure on Malta’s infrastructure and ensuring the country’s long-term sustainability.
