Yesterday in Parliament, Alex Borg did a Miriam Dalli and said that he will be retaining energy subsidies and lower electricity bills via renewable energy sources if elected Prime Minister.
Alex Borg doesn’t seem to understand that Malta has the lowest electricity tariffs in the EU because the government is spending up to €200 million every year in subsidies to keep these tariffs low. In addition, the subsidies issued by the government since the Covid pandemic, including the subsidies to Maltese companies, that by now amount to a total of up to €1.5 billion – have been a significant factor pushing up the the national debt and the deficit. The other major component which raised the national debt was health and the health sector.
Cutting off waste would help the government’s finances extensively, but the Minister of Finances, has pointed out that this exercise is already ongoing.
Alex Borg does not have a plan for Malta’s energy sector, which is a primary drag on government’s finances, and is not actually understanding the budget’s finances that are conditioning the deficit and the national debt. It is also why he fails to see the risks behind the metro.
Alex Borg has surrounded himself with old Nationalist stalwarts to get feedback on various national issues and if he is getting his feedback from Lawrence Gonzi’s previous cabinet, he is right on track to re-create more national problems. To put it in perspective, Alex Borg is pledging to spend up to €1 billion in subsidies to keep electricity prices low during his five-year tenure if he is elected as Prime Minister. He is not factoring the metro for these subsidies.
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