Malta’s economic policy is like the metaphorical frog which doesn’t realise that the temperature of the water is slowly rising. Then the water gets too hot and the frog dies. Actually Malta’s situation is worse, as the government is actually being warned about money laundering, corruption and overdependence on certain sectors.
We should be very worried about the government’s consultation process about the cash-for-citizenship scheme known as the Individual Investors Programme (IIP). Let us remember that when Joseph Muscat had originally announced the scheme after the 2013 election, he had promised to keep it temporary.
Now the scheme is not simply a one-off programme in the government’s policymaking: it is the main reason why Malta has a fiscal surplus. This means that Muscat and Finance Minister Edward Scicluna are rendering the country dependent on the sale of passports.
They pacify public opinion by seducing voters to take a share of the multiplier effect