Last week, a group of journalists asked Energy Minister, Miriam Dalli how is the government’s energy subsidies sustainable in terms of public finances.
She didn’t answer the question, and when she was pressed to answer the question she kept repeating the same refrain that the government will keep subsidising energy prices whatever the cost.
Well, Dalli probably isn’t just showing contempt for the truth and the typical Labour arrogance, she probably doesn’t know. The simple answer is that the government’s energy subsidies are not sustainable. Here below is a graphic of Malta’s total debt as published last June.
Interestingly, Malta’s long-term average interest rate on its government bonds is higher than Spain’s which is finding it increasingly difficult to find buyers of its debt. That’s not a good sign either.