Malta Fact Sheet
Introduction
Malta is the largest Island in an archipelago of three islands, which also includes Gozo, Comino and Filfla. Its closest neighbouring country is Italy to the north, whilst Libya and Tunisia are to the south. For centuries, Malta commanded a strategic position in the Mediterranean Sea and was therefore colonised by powers that wanted to control the seas around it.
Malta's flag is made up of two equal vertical bands of white (hoist side) and red, with a representation of the George Cross in the upper hoist-side corner. The George Cross was awarded to the Maltese people, one of the only two George Crosses ever awarded collectively, by King George VI during the Second Great Siege of 1939-45.
Geography
The Maltese Islands have an area of 315 square kiometres, and a coastline of 252.9 kilometres. The Islands stand on an underwater ridge running from North Africa to Sicily, and Malta was once connected to both continents. Malta has many indentations in its coast and boasts one of the Mediterranean’s finest natural harbours. The Islands have few natural resources, and rely for their water supply mostly on desalinated water. The capital of the Maltese Islands is Valletta.
For more information go to Geography of Malta
History
The oldest documented evidence of mankind on the Maltese Islands goes back to 5200 BC. After the Neolithic people came the temple-builders who left some of the oldest free-standing buildings (Ġgantija and Ħaġar Qim) in the world over a period stretching between 3600 BC and 2500 BC. Then came the Bronze Age. The Phoenicians colonised the Islands in 1000 BC, using them as a trade and exploration outpost. 
In 1091, Count Roger of Sicily brought the Normal rule to Malta and initiated a gradual change from Arab to European influence. Malta changed hands several times between feudal lords, until it came under the firm control of the Spanish Empire. In 1530, though, King Charles V of Spain handed the Islands over to the Knights of St John of Jerusalem and Rhodes, after their eviction by the Ottomans. 
The Knights, who from hospitaliers became a military order, ruled over Malta for the next 275 years, though their number of nine thousand and the Maltese had to defend the islands against a large Turkish invasion force of 40,000 men in 1565. That First Great Siege ended with a victory for Christian Europe, after which the Knights built the fortified city of Valletta and started a building period that has left a rich architectural and cultural heritage. A major bequest of the Knights was, of course, the eight-pointed Maltese Cross which is such a widely-recognised symbol.
By 1798, however, the Order of the Knights of Malta had had its hey-day, and easily succumbed to Napoleon Bonaporte. The French freed the remainging Muslim slaves and replaced the still-subsisting feudal system with the more liberal Napoleonic Code. But French rule did not last long, particularly after they systematically plundered the churches. After they were besieged in Valletta, in 1800 they surrendered to a British naval force whose assistance the Maltese people had sought.
This saw the beginning of British rule, even though under the Treaty of Amiens the British were obliged to evacuate the Islands. Under British rule, Malta became a highly-prized strategic asset and had a garrison of thousands of soldiers and airmen. This automatically made Malta a target for Italian and German forces during the Second World War, when waves and waves of Axis aircraft attacked the Islands, but Malta held even though at one time its people were literally days away from starvation.
Under British rule, the Maltese made repeated attempts to gain autonomy in local matters, and at times were successful in obtaining a measure of self-government. But these periods all ended in return to direct rule from Westminster, even though in 1919 this led to riots in Valletta which claimed the lives of four people. Eventually, the Maltese people again gained self-rule in 1947.
The post-war years were characterised by a turbulent period. In 1955 a Labour Government led by Dom Mintoff proposed the integration of Malta into the United Kingdom, but a referendum on this issue did not yield a clear-cut vote in favour, influenced to a great extent by the opposition of the local Catholic Hierarchy. In December 1957, the Maltese Parliament adopted a “Break with Britain” resolution proposed by the Labour Government, as a protest against the economic impact of the British defence cuts. The withdrawal of Great Britain from most of its world-wide military outposts presented a grave threat to Malta’s livelihood through successive run-downs of the military base. The lack of economic development was the cause of serious economic difficulties which, in the Sixties, led to the emigration of a huge number of Maltese to such countries as Australia, the United States and Canada, and England itself. These years were also dominated by a political-religious struggle between the Malta Labour Party and the Church Hierarchy about the separation between the State and the Church.
Nevertheless, as in many other British colonies, the Wind of Change blew in Malta as well. The struggle for independence was carried out by both the Malta Labour Party and the Nationalist Party, although the two had substantial differences regarding the Constitution that Malta should have as well as what the MLP considered as continuing excessive interference by the UK. The Maltese people eventually realised their aspirations on 21 September 1964, when a Nationalist Government led by Dr George Borg Olivier obtained Independence, though Malta still had a British Governor-General. Malta joined the United Nations and became a member of the British Commonwealth.
The post-independence years saw the transformation of Malta from an Island-Fortress reliant for its livelihood on the British military bases to a developed country which relies on a mix of manufacturing industry, tourism and financial services. After Independence, various Labour and Nationalist governments embarked on development projects to improve the country’s physical infrastructure, promote education, provide universal free health care, introduce social services, and develop a mixed economy.
Early in the Seventies the Malta Labour Party again gained power under the leadership of Dom Mintoff, who was determined to remove any subsisting British interference in Malta’s affairs and get rid of NATO. Under his government, Malta was declared a Republic on 13 December 1974, whilst the last British Forces left the Islands on 31 March 1979. The Labour governments of those years were instrumental in setting up the enterprises associated with any new nation-state, like a national airline, as well as in introducing the Welfare State.
The Eighties were dominated by a series of Nationalist Governments who placed a new emphasis on a mixed economy, introduced market liberalisation, and worked for Malta’s membership of the European Union. In fact, Malta became a member of the EU in May 2004 and a member of the Euro Zone in January 2008. However, Malta remains constitutionally a neutral state.
For more information, go to http://en.wikipedia.org/wiki/History_of_Malta
People
The population of the Maltese Islands is around 405,000 with a median age of 39.5 years. They still have a positive population growth rate of 0.4 per cent, and life expectancy is 79.4 years. The absolute majority of the population professes the Roman Catholic religion. The Maltese language, which has semitic origins but has assimilated various Romance languages as a result of colonisation by different powers over the centuries, is a living language and spoken by all the population. English, though, is the second official language and widely spoken.
The people are typically Mediterranean, and are prone to be loud and boisterous. The Maltese love celebrating anything, with loud fireworks if possible, and summer abounds with feasts celebrating the patron saints of the various towns and villages. Food is a mix of traditional Maltese dishes, Mediterranean cuisine, and a smattering of English dishes. Whilst for a long period beer was the most common drink, now there is a marked return to wine.
For more information go to:
http://www.my-malta.com/malteseislands/background.html
Laws and Legislation
The Maltese legal system is based on a mix of English Common Law and Roman Civil Law, but now incorporates a huge body of EU laws and regulations. The Courts of Justice are independent of the Executive and the Judiciary can only be removed through Parliamentary resolutions. Legislation is passed by a unicameral Parliament, consisting of a House of Representatives with 65 seats, which can increase by several seats if the system of proportional representation does not return to office the party obtaining the majority of votes . Parliament is based on the Westminster model. Elections are held every five years. The two major parties are the Labour Party and the Nationalist Party. There are, however, two smaller parties, the Alternattiva Demokratika and Alleanza Nazzjonali, which have never gained representation. There is also a system of local government with limited powers wielded by Local Councils in the various localities.
The last elections, held in 2008, were won by the Nationalist Party under the leadership of Dr Lawrence Gonzi. The Opposition comes from the Labour Party, under the leadership of Dr Joseph Muscat, formerly a Member of the European Parliament. The current Head of State is Dr George Abela.
For more information go to http://www.legal-malta.com/law/legislation.htm
Education
The Maltese are highly literate (93 percent) and have a respected education system. Malta has the second-oldest University in the Commonwealth. There is increasing emphasis on tertiary and vocational education, with about 15,000 students at the University and in other higher-education institutions. The high degree of fluency in other languages has proved a boon in attracting thousands of foreign students to learn English and other languages.
For more information go to:
http://www.euroeducation.net/prof/maltco.htm
Culture
Malta has a vibrant culture. There are several daily and weekly newspapers, various magazines and periodicals, and several TV and radio stations. Hundreds of fiction and non-fiction books are published each year. The arts scene is bustling, with frequent concerts of serious and pop music, art exhibitions, and drama recitals, both in Malta and in Gozo. There are several Arts Festivals throughout the year.
For more information go to http://www.maltaculture.com/
Economy
Source: Economic Commission Autumn Economic Forecast
Malta registered strong economic growth in the years preceding the global economic crisis. During 2005-07, real GDP growth averaged almost 4%, mainly driven by domestic demand. Exports --dominated by electronics and tourism -- expanded due to a growing services sector. Although Euro Zone membership has cushioned the impact of the crisis by offering enhanced financial stability, the economy's resilience has come under strain, underscoring the importance of strengthening competitiveness.
The global crisis affected Malta primarily through the trade channel as external demand for its products fell. Exports of electronics were hit hard, while the tourism sector suffered from fewer visitors from key source markets. Real GDP growth slowed in the last few months of 2008 as the global recession took its toll on Malta's small and open economy. In 2008 as a whole, real GDP growth decelerated to 2.1%. Domestic demand held up well as the strong growth in private and public consumption outweighed the sharp decline in investment caused by lower construction activity. The impact of the global financial turmoil on the banking system was limited, reflecting the fact that banks are funded from resident deposits and their lending is almost exclusively local, while their involvement in inter-banking activity with overseas banks is limited. The liquidity position of the banking sector remains relatively strong even if the vulnerability of the system has increased, in the wake of the ongoing decline in property prices.
With no need to directly assist the financial sector, Malta's response to the crisis consists of several fiscal measures to support the real sector in 2009. The main focus of the recovery measures, which amount to around 1.5% of GDP, is on increasing public infrastructure and on support to manufacturing, tourism and SMEs.
On the back of a significant contraction in output in the first half of the year, real GDP is expected to have shrunk by 2.2% in 2009. Even if on a quarterly basis the pace of contraction eased in the second quarter of 2009, the scope for a quick turnaround appears limited. Economic activity is projected to gradually improve in 2010 and 2011, although growth is set to remain below historical trends. Declining exports will continue to weigh on real GDP throughout 2009.
Risks to the macroeconomic outlook stem from a protracted period of weak external demand, given Malta's reliance on trade flows. Private consumption may be dampened further as a result of deteriorating labour market conditions and possible adverse wealth effects from the correction in property prices.
Following years of fiscal consolidation, the general government deficit increased to 4.7% of GDP in 2008 due to one-off early retirement payments to shipyards' employees, the reclassification of the yards in the general government sector and lower tax receipts. For 2009, the deficit is estimated to decline slightly to 4.5% of GDP. The worsening economic situation is expected to depress the tax intake. Based on the no-policy-change assumption which does not include the forthcoming 2010 budget, the general government deficit is projected to decline marginally to 4.4% of GDP in 2010. In 2011, assuming no policy change, the deficit is foreseen to decline further to 4.3% of GDP.
For more information go to:
2010 Budget Economic Survey 2009
publication16055_en.pdf
Source: Economic Commission Autumn Economic Forecast
