MALTA THRIVED UNDER MINTOFF’S 1970S RULE MORE THAN UNDER LABOUR SINCE 2013

by Joe Vella

Mintoff’s 1970s were an economic powerhouse. From 1970 to 1974, Malta’s GDP growth averaged 6.9% annually, soaring to an astonishing 11.8% from 1975 to 1979. This was driven by a robust manufacturing sector, which peaked at 32.7% of GDP in the late 1970s, and a burgeoning tourism industry.

Contrast this with Labour’s record since 2013. While GDP growth averaged 6.6% from 2013 to 2023, with 5.0% in 2024, much of this growth has been fuelled by foreign investment and a construction boom, often benefiting the construction barons rather than ordinary Maltese. Unemployment, though still low at 3.1% in 2024 compared to 2.7% in 1979, masks precarious job conditions in sectors like gaming and hospitality, which dominate today’s economy. Inflation in 2025, is better managed than the foreign oil crisis-driven spikes of the 1970s, but rising living costs, particularly in housing, have outpaced wage growth for many.

Mintoff’s era saw state-led investment create jobs and infrastructure, with public administration and manufacturing employing 31.8% of the workforce by the late 1970s. Today’s reliance on private sector growth has led to wealth concentration, with Malta’s Gini coefficient rising to 31.4 in 2020 from an estimated lower base in the 1970s, indicating growing income inequality.

Mintoff’s government didn’t just grow the economy; it built a welfare state that prioritised the vulnerable. Between 1971 and 1979, landmark reforms transformed Maltese society. Broader social security contributions were introduced in 1971, followed by annual pensioner bonuses in 1972, Children’s Allowances and Disability Pensions in 1974, and the Two-Thirds Pension scheme in 1979. These measures ensured that economic gains reached the working class, widows, and disabled, fostering a sense of shared prosperity.

Since 2013, Labour has expanded welfare, with pension increases in 2022 and pandemic support schemes where people where handed out vouchers to enjoy a hot meal at restaurants of their choice. Yet, these gains feel hollow for many. The focus on economic liberalism has led to a property market boom, pricing young Maltese out of homeownership, with average house prices doubling since 2013. Mintoff’s housing policies, by contrast, prioritised affordable homes for low-income families, ensuring broader access.

Education and healthcare also flourished under Mintoff. Free education expanded, and new hospitals and clinics improved access, with public administration spending at 19.8% of GDP in the 1970s. Since 2013, infrastructure has improved, but population growth through the rapid importation of cheap foreign labour has strained services, leaving healthcare and police services less accessible to the Maltese.

Mintoff’s 1970s were a time of Maltese empowerment. Becoming a republic in 1974 and ending British military presence in 1979 gave the nation a sense of sovereignty. His socialist policies, including nationalisation of key industries, ensured wealth stayed in Maltese hands. His was a vision of equity and independence.

Since 2013, Labour’s governance has been marred by corruption scandals, notably the Panama Papers and the tragic assassination of Daphne Caruana Galizia in 2017. These have eroded public trust, with many Maltese feeling their country’s reputation has been sold to the highest bidder through schemes like the Individual Investor Programme. The economic focus has also fuelled social tensions, with rapid development and foreign influxes altering Malta’s cultural fabric, unlike the cohesive national identity Mintoff fostered.