Persistent rumours of an early election may lead to an economic slowdown, according to The Malta Chamber, which warns that “uncertainty about election timing can significantly disrupt business activity.”

Speaking to MaltaCEOs.mt, The Malta Chamber CEO Marthese Portelli notes that “when the political landscape is unclear, companies often tend to delay their investments, which may in turn slow economic momentum and innovation.”

Malta holds a general election every five years, with the last one held on 26th March 2022. The next election should therefore be held in 2027.

However, there has been widespread speculation that Prime Minister Robert Abela may call an election as much as a full year in advance. Although he ruled out that option in January 2025, he hinted that it is very much on the table in several statements made since May.

The ‘will-he-won’t-he’ tease currently playing out at the highest political level in Malta may be a treat for party supporters and enthusiasts, but business tends to prefer predictable timelines.

“Whereas calling an election is Government’s prerogative, it is also Government’s responsibility to fulfill its mandate,” says Dr Portelli. “An early election can result in delayed reforms, delayed supporting measures, and unimplemented policies.”

She also warns that calling an early election could delay the setting of KPIs and implementation of the first milestones of Vision 2050.

When an election is called – whenever that is – The Chamber CEO says it should focus on mature debate and long-term sustainability “rather than populist and unsustainable promises.”

Dr Portelli adds: “An electoral campaign should not descend into the traditional populist game of which party or candidate promises the most. Ultimately, unsound measures will be borne by the taxpayer.”

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