The European Commission has given a partial green light to Malta’s fourth payment request, amounting to €51.5 million, under the NextGenerationEU recovery fund. This decision marks a significant step in Malta’s implementation of reforms and investments aimed at bolstering the rule of law, combating corruption, and advancing green and digital transitions, alongside improvements in healthcare and education.
The European Commission’s assessment indicates that Malta has made substantial progress in fulfilling the conditions set for this payment. Among the flagship measures highlighted are:
- Literacy Support Programme: A targeted reading program designed to help over 1,000 young students improve their reading proficiency, fostering independence and reducing educational disparities.
- Modernised Digital Pathology Identification: The deployment of advanced IT infrastructure and workstations to expedite diagnostic processes, enhance clinical decision-making, and optimize hospital resource management.
- Transfer of Prosecution Authority: A significant reform transferring prosecution responsibilities for over 30 offense categories from the police to the Attorney General’s Office, aimed at strengthening judicial independence and establishing a specialized prosecution service.
Despite the overall positive assessment, one milestone concerning legal acts to mitigate risks associated with inbound and outbound payments in aggressive tax planning has not yet been satisfactorily fulfilled. The Commission has formally communicated this to Malta, which now has one month to provide its observations.
Following Malta’s response, the Commission will confirm its assessment. If the milestone remains unfulfilled, the amount corresponding to it will be suspended from the total €51.5 million. Malta will then have six months to address the outstanding commitment, after which the Commission will reassess the situation. The payment for the successfully completed milestones can proceed after the Economic and Financial Committee (EFC) issues a positive opinion and the Commission adopts a payment decision.
Malta submitted its fourth payment request on December 19, 2025. The country’s recovery and resilience plan encompasses a broad spectrum of investments and reforms crucial for climate and digital objectives. With the Recovery and Resilience Facility set to conclude at the end of 2026, member states are urged to complete all pending milestones and targets by August 2026 and submit their final payment requests by September 2026.