Malta 2016 Country Review http://www.countrywatch.com Table of Contents Chapter 1 1 Country Overview 1 Country Overview 2 Key Data 3 Malta 4 Europe 5 Chapter 2 7 Political Overview 7 History 8 Political Conditions 9 Political Risk Index 16 Political Stability 30 Freedom Rankings 45 Human Rights 57 Government Functions 59 Government Structure 61 Principal Government Officials 65 Leader Biography 68 Leader Biography 68 Foreign Relations 70 National Security 74 Defense Forces 75 Chapter 3 77 Economic Overview 77 Economic Overview 78 Nominal GDP and Components 96 Population and GDP Per Capita 98 Real GDP and Inflation 99 Government Spending and Taxation 100 Money Supply, Interest Rates and Unemployment 101 Foreign Trade and the Exchange Rate 102 Data in US Dollars 103 Energy Consumption and Production Standard Units 104 Energy Consumption and Production QUADS 106 World Energy Price Summary 107 CO2 Emissions 108 Agriculture Consumption and Production 109 World Agriculture Pricing Summary 111 Metals Consumption and Production 112 World Metals Pricing Summary 115 Economic Performance Index 116 Chapter 4 128 Investment Overview 128 Foreign Investment Climate 129 Foreign Investment Index 133 Corruption Perceptions Index 146 Competitiveness Ranking 157 Taxation 166 Stock Market 167 Partner Links 167 Chapter 5 168 Social Overview 168 People 169 Human Development Index 170 Life Satisfaction Index 174 Happy Planet Index 185 Status of Women 194 Global Gender Gap Index 197 Culture and Arts 207 Etiquette 208 Travel Information 208 Diseases/Health Data 217 Chapter 6 223 Environmental Overview 223 Environmental Issues 224 Environmental Policy 224 Greenhouse Gas Ranking 226 Global Environmental Snapshot 237 Global Environmental Concepts 248 Malta Chapter 1 Country Overview Malta Review 2016 Page 1 of 299 pages Malta Country Overview MALTA Malta is an island nation state located in the Mediterranean Sea to the south of the Italian island of Sicily -- between Europe and North Africa. The United Kingdom formally acquired possession of Malta in 1814; Malta was strongly supportive of British efforts in both world wars. Malta gained independence in 1964 but retained membership in the Commonwealth. A decade later Malta became a republic. Malta's strategic position fostered its development over the centuries as an important trading post. Today, it remains a leading center for container and freight trans-shipment. Malta is a popular holiday destination and tourism is the nation's main source of income. Malta became an EU member in May 2004 and began using the euro as currency in 2008. Malta Review 2016 Page 2 of 299 pages Malta Key Data Key Data Region: Europe Population: 413965 Climate: Mediterranean with mild, rainy winters and hot, dry summers. Maltese (official) Languages: English (official) Currency: 1 Maltese lira (LM) = 100 cents Holiday: Independence Day is 21 September (1964), Republic Day is 13 December Area Total: 320 Area Land: 320 Coast Line: 140 Malta Review 2016 Page 3 of 299 pages Malta Malta Review 2016 Page 10 of 299 pages Malta Marco. In May 2004, Malta became the smallest new member of the EU. A month later in June 2004, early indications from the EU parliamentary elections suggested there had been a record low turnout of only 44.2 percent for the EU. Early indications also suggested that turnout among the 10 new member states was even lower than the overall average at only 26 percent. Malta was the exception to this trend as it experienced the highest turnout with more than 80 percent participation. In early 2005, Malta was in the spotlight thanks to some rather unflattering news. The United Nations refugee agency criticized the Mediterranean country for its treatment of asylum seekers. In particular, the international agency expressed concern regarding what seemed to be the excessive use of force by Maltese soldiers during a peaceful demonstration held by asylum seekers. In that case, six asylum seekers had to be given medical care after they attended a protest, which was broken up by military personnel. Photographs were published in the local media depicting soldiers kicking and hitting the asylum seekers even as they were forcibly held to the ground. This damaging scenario emerged amidst broader criticism from the United Nations in which it was alleged that Malta had the strictest asylum policy in Europe. In July 2005, the parliament of Malta ratified the proposed EU constitution. Malta was hoping to join the euro zone in 2008. In the fall of 2006, the EU Commissioner for Economic and Monetary Affairs, Joaquin Almunia, noted that Malta could look forward to possibly joining the EU in 2008, however, such a timeline would be contingent upon an economic assessment in the spring of 2007. Meanwhile, in June 2006, Malta was hit by a riot involving illegal immigrants. The incident was sparked when about 300 people housed in an immigration complex close to the international airport tried to march to the capital city of Valetta to protest their living conditions and the lengthy asylum- seeking process. Security personnel, made up of police and the armed forces, restricted the protestors from marching two miles (three kilometers) past the immigration complex, and became embroiled in clashes with the marchers. The incident resulted in injury to five Maltese police officers and soldiers. On an annual basis, around 400 immigrants, usually seeking asylum, arrive in Malta by sea. They have typically been housed in the immigration centers until their cases are finalized. Cases involving illegal immigrants arriving by sea from the north coast of Africa have increasingly presented the Maltese authorities with something of a challenge, as it grapples with how to deal with the large influx of refugees into the country. In this regard, Malta's Minister of the Interior, Tonio Borg, brought attention to his country's dilemma by calling on the European Union (EU) to urgently open dialogue with the Libyan government on the issue. This request came following the arrival of about 1,200 illegal refugees Malta planned to remove unnecessary income taxes, improve the state of health care, improve the standard and cost of living and improve upon education. Meanwhile, the ruling PN, led by Prime Minister Lawrence Gonzi, focused simply on stability and the party's plan to heavily cut income taxes for the middle class and the poor. The smaller independent parties focused on improving the quality of the Maltese people’s lives. Several political parties also stated they would improve the standard of living by spreading more money to healthcare societal projects. On election day, most Maltese people went to the polls to cast their ballots. In fact voter turnout was a staggering 93 percent. The results showed a close election, with the incumbent Nationalist Party securing a very slim victory over its closest rival, the Labour Party. Indeed the Nationalists' advantage was reported to less than one percent over the Labour Party. Official results showed that the Nationalist Party won re-election with 49.3 percent of the vote and 35 seats, while the Labor Party received 48.8 percent of the vote and 34 seats. While the two main parties dominated the political sphere, two other parties were on the ballot in 2008, Alternative Demokratika (Green Party) and Azzjoni Nazzjonali (National Action); neither party managed to secure a seat in parliament. With the election over, Prime Minister Gonzi was to continue his pro-European and economic reformist policies. On January 12, 2009, President-elect George Abela of the Malta Labour Party was elected to become the next president on April 4, 2009 when President Adami steps down from office;. Abela was elected in an indirect vote in House of Representatives. It was an unprecedented occasion for a member of the opposition to be elected president while the Nationalist Party had control over parliament. The stability of the euro zone and the European Union has become a major concern in recent years, largely emanating from the Greek debt crisis, but extending regionally. Indeed, in late 2011, there were calls for serious changes to Europe’s governing treaties, aimed at ameliorated economic governance for the 17 countries that make up the euro currency bloc. Included in their proposal were: (1) the creation of a monetary fund for Europe, (2) automatic penalties for countries that exceed European deficit limits, and (3) monthly meetings of European leaders. Meanwhile, the European Stability Mechanism (ESM), which was intended to replace the European Financial Stability Facility in 2013 (an entity intended as a rescue mechanism for struggling European economies), would be advanced earlier in 2012. Ideally, the new treaty would be ratified by all 27 member states of the European Union. However, if concurrence at that level proved impossible, then the 17 states of the euro zone would have to approve it. In January 2012, the credit ratings agency, Standard & Poor’s, downgraded the status of a number Malta Review 2016 Page 13 of 299 pages Malta of European countries as a result of the euro zone debt crisis. Malta was cut one notch from A to A-. Please see the "Economic Conditions" for information about the debt crisis plaguing Europe and the euro zone countries. Parliamentary elections were expected to be held in Malta on March 9, 2013. At stake would be the composition of the 65-seat unicameral "Il-Kamra tad-Deputati" (House of Representatives), where members are elected by popular vote on the basis of proportional representation to serve five-year terms. The two main political parties contesting the elections would be the Nationalist Party, led by incumbent Prime Minister Lawrence Gonzi, and the Labour Party, led by Joseph Muscat. Also contesting the elections would be the Democratic Alternative. The last election was held in 2008. At that time, the results showed a close election, with the incumbent Nationalist Party securing a very slim victory over its closest rival, the Labour Party.