The European Commission has given partial approval to Malta’s fourth request for funding under the Recovery and Resilience Facility (RRF), unlocking a significant portion of the
€51.5 million sought as part of the EU’s broader NextGenerationEU programme.
In its preliminary assessment, the Commission confirmed that Malta successfully met 25 out of 26 agreed milestones tied to the payment. The progress marks another step forward in the country’s reform agenda, particularly in areas such as governance, digital transformation, healthcare, and education.
Among the standout initiatives is a nationwide literacy support programme aimed at helping more than 1,000 students improve reading skills and reach age-appropriate proficiency levels. The tailored approach is designed not only to boost academic performance but also to enhance confidence and reduce early educational disparities.
In healthcare, Malta has introduced modern digital pathology systems, including advanced IT infrastructure and specialised workstations. These upgrades are expected to accelerate diagnostics, improve clinical decisions, and optimise the use of hospital resources—significantly raising the standard of care.
On the institutional front, a major judicial reform has shifted prosecution responsibilities for over 30 types of offences from the police to the Attorney General’s Office. The move is intended to strengthen judicial independence and create a more specialised and efficient prosecution system.
However, the Commission noted that one key reform—targeting aggressive tax planning practices—remains incomplete. Specifically, Malta has yet to fully implement the necessary legal measures addressing risks linked to cross-border financial flows.
As a result, part of the requested funding may be temporarily withheld. Malta has been given one month to respond to the Commission’s concerns. If the issue remains unresolved, the corresponding portion of the funds will be suspended until corrective measures are implemented.
The Commission has forwarded its assessment to the Economic and Financial Committee, which now has four weeks to deliver its opinion. A final decision on the disbursement will follow at a later stage.
Malta submitted its funding request in December 2025 as part of its national recovery plan, which aligns with the EU’s priorities on climate action and digitalisation. With the RRF programme set to conclude in 2026, member states face tight deadlines to complete all agreed reforms and secure remaining funds. Photo by Joe Ambrogio, Wikimedia commons.