PN calls for urgent fiscal discipline as rising interest rates push up debt burden
Malta’s public debt has been increasing by around €1 billion annually under this Government, with the cost of servicing that debt already placing a growing strain on public finances.
The Partit Nazzjonalista is urging government to adopt immediate fiscal discipline following the European Central Bank’s (ECB) decision to raise its deposit facility rate by 25 basis points to 2.25%. With further interest rate increases expected in the coming months to contain inflation, the PN warns that a more disciplined approach to public debt management is now essential.
Malta’s public debt has been increasing by around €1 billion annually under this Government, with the cost of servicing that debt already placing a growing strain on public finances. Even before recent rate hikes, this translated into around €1 million every single day in interest payments alone – costs ultimately carried by future generations. With higher interest rates, this burden is set to rise further, meaning taxpayers will be paying even more than €1 million per day to cover the cost of government overspending.
The PN notes that this warning is consistent with recent advice from the Malta Fiscal Advisory Council (MFAC), which has called for public spending to move away from short-term measures and towards investment that delivers stronger long-term returns. The same approach was called for by several authorities including the Malta Chamber of Commerce.
The PN stresses that continued fiscal indiscipline is not sustainable, and that government must act now to avoid passing an even heavier debt burden onto the Maltese people in the years ahead.
12.06.2026