MALTA

Compiled from the December 2004 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Malta

PROFILE

Geography

Area: 316 sq. km. (122 sq. mi.); about one-tenth the size of Rhode Island.

Cities: Valletta (capital), Sliema.

Terrain: Low hills.

Climate: Subtropical summer; other seasons temperate. Mediterranean: hot dry summers, cool wet winters.

People

Nationality: Noun and adjective—Maltese.

Population: (2003) 399,867.

Annual growth rate: (2003 est.) 0.65%.

Ethnic groups: Mixture of Arab, Sicilian, Norman, Spanish, Italian, English.

Religions: (2003) Roman Catholic, 98%.

Languages: Maltese, English.

Education: (2003) Years compulsory—until age 16. Attendance—96%. Literacy—93%.

Health: (2003) Infant mortality rate (per 1,000 live births)—5.9. Life expectancy at birth—Males 76.4, Females 80.4.

Work force: (1st quarter 2004) 160,183; Public sector 27.1%; Services 43.3%; Manufacturing 19.4%; Construction & Quarrying 7.5%; Agriculture and fisheries 2.7%.

Government

Type: Republic.

Independence: September 1964.

Constitution: 1964; revised 1974; revised 1987.

Branches: Executive—president (chief of state), prime minister (head of government), cabinet. Legislative—unicameral House of Representatives. Judicial—Constitutional Court.

Administrative subdivisions: 13 electoral districts.

Political parties: Nationalist Party, Malta Labor Party, Alternattiva Demokratika (Green Party).

Suffrage: Universal at 18.

Economy

GDP: (2003) $4.85 billion.

Annual growth rate: (2003) 1.6%.

Per capita income: $12,173.

National resources: Limestone, salt.

GDP composition by sector, 2002: Services (74.6% of GDP).

Industry: (22.9% of GDP); Types—clothing, semiconductors, shipbuilding and repair, furniture, leather, rubber and plastic products, footwear, spectacle frames, toys, jewelry, food, beverages, tobacco products.

Agriculture: (2.5% GDP); Products—fodder crops, potatoes, onions, Mediterranean fruits and vegetables.

Trade: (2003) Exports—$2.63 billion. Types—Machinery and transport equipment, semi-conductors, clothing, furniture, leather, rubber and plastic products, footwear, bunker fuel. Major markets—U.S., Germany, France, U.K., Italy. Imports—$3.62 billion: finished and semi-finished goods, food and beverages, industrial supplies, petroleum and related products. Major suppliers—Italy, France, U.S., U.K., Germany.

Trade balance: (2003) $990 million.

Budget: (2003) revenues $2.47 billion; expenditures $2.42 billion, including capital expenditures of $224.3 million.

Average Exchange rate: (2003) $1 = Lm 0.434 (rate fluctuates)

PEOPLE

Malta is one of the most densely populated countries in the world, with about 1,160 inhabitants per square kilometer (3,000 per sq. mi.). This compares with about 21 per square kilometer (55 per sq. mi.) for the United States. Inhabited since prehistoric times, Malta was first colonized by the Phoenicians. Subsequently, Romans, Arabs, Normans, the Knights Hospitallers of St. John of Jerusalem, and the British have influenced Maltese life and culture to varying degrees. Most of the foreign community in Malta, predominantly active or retired British nationals and their dependents, centers around Sliema and surrounding modern suburbs. There is also a growing North African Muslim community of about 3000 (2003), many of whom are married to Maltese nationals. There have also been a number of Maltese nationals converting to Islam. Roman Catholicism is established by law as the religion of Malta; however, full liberty of conscience and freedom of worship is guaranteed, and a number of faiths have places of worship on the island. Malta has two official languages—Maltese (a Semitic-based language) and English. The literacy rate has reached 93%, compared to 63% in 1946. Schooling is compulsory until age 16.

HISTORY

Malta was an important cultic center for earth-mother worship in the 4th millennium B.C. Recent archeological work shows a developed religious center there long before those of Sumer and Egypt. Malta's written history began well before the Christian era. Originally the Phoenicians, and later the Carthaginians, established ports and trading settlements on the island. During the second Punic War (218 B.C.), Malta became part of the Roman Empire. During Roman rule, in A.D. 60, Saint Paul was shipwrecked on Malta at a place now called St. Paul's Bay.

In 533 A.D. Malta became part of the Byzantine Empire and in 870 came under Arab control. Arab occupation and rule left a strong imprint on Maltese life, customs, and language. The Arabs were driven out in 1090 by a band of Norman adventurers under Count Roger of Normandy, who had established a kingdom in southern Italy and Sicily. Malta thus became an appendage of Sicily for 440 years. During this period, Malta was sold and resold to various feudal lords and barons and was dominated successively by the rulers of Swabia, Aquitaine, Aragon, Castile, and Spain.

In 1522 Suleiman II drove the Knights of St. John out of Rhodes. They dispersed to their commanderies in Europe and after repeated requests for territory to Charles V, in 1530 the Knights were given sovereignty of Malta under the suzerainty of the Kings of Sicily. In 1523, a key date in Maltese history, the islands were ceded by Charles V of Spain to the Order of the Knights of St. John of Jerusalem. For the next 275 years, these famous "Knights of Malta" made the island their domain. They built towns, palaces, churches, gardens, and fortifications and embellished the island with numerous works of art and enhanced cultural heritage. In 1565 Suleiman the Magnificent laid siege to Malta. After several months the strength of the Knights and the Maltese population prevailed and the Turks were defeated. Over the years, the power of the Knights declined, however, and their rule of Malta ended with their peaceful surrender to Napoleon in 1798.

The people of Malta rose against French rule, which lasted two years, and with the help of the British evicted them in 1800. In 1814, Malta voluntarily became part of the British Empire. Under the United Kingdom, the island became a military and naval fortress, the headquarters of the British Mediterranean fleet. During World War II, Malta survived relentless raids from German and Italian military forces (1940-43). In recognition, King George VI in 1942 awarded the George Cross "to the island fortress of Malta—its people and defenders." President Franklin Roosevelt, describing the wartime period, called Malta "one tiny bright flame in the darkness." Malta obtained independence on September 21, 1964, became a Republic on December 13, 1974, and a member of the European Union on May 1, 2004. The last British forces left in March 1979.

GOVERNMENT

Under its 1964 constitution, Malta became a parliamentary democracy within the Commonwealth. Queen Elizabeth II was sovereign of Malta, and a governor general exercised executive authority on her behalf, while the actual direction and control of the government and the nation's affairs were in the hands of the cabinet under the leadership of a Maltese prime minister.

On December 13, 1974, the constitution was revised, and Malta became a republic within the Commonwealth, with executive authority vested in a Maltese president. The president is appointed by parliament. In turn, he appoints as prime minister the leader of the party with a majority of seats in the unicameral House of Representatives.

The president also nominally appoints, upon recommendation of the prime minister, the individual ministers to head each of the government departments. The cabinet is selected from among the members of the House of Representatives, which consists of between 65 and 69 members elected on the basis of proportional representation. Elections must be held at least every five years. Candidates for any vacancies are determined by the majority of votes obtained by a candidate during the previous elections.

Malta's judiciary is independent. The chief justice and sixteen judges are appointed by the president on the advice of the prime minister. Their mandatory retirement age is 65. There is a civil court, a commercial court, a family court, and a criminal court. In the latter, the presiding judge sits with a jury of nine. The court of appeal hears appeals from decisions of the civil court and of the commercial court. The court of criminal appeal hears appeals from judgments of conviction by the criminal court. The highest court, the Constitutional Court, hears appeals in cases involving violations of human rights, interpretation of the constitution, and invalidity of laws. It also has jurisdiction in cases concerning disputed parliamentary elections and electoral corrupt practices. There also are inferior courts presided over by a magistrate.

The Local Councils Act, 1993 (Act XV of 1993) was published on 30 June 1993 subdividing Malta into 54 local councils and 14 in the small island of Gozo. Councils are elected every three years by inhabitants who are registered as voters in the Electoral Register. Elections are held by means of the system of proportional representation using the single transferable vote. The Mayor is the head of the Local Council and the representative of the Council for all effects under the Act. The Executive Secretary, who is appointed by the Council, is the executive, administrative, and financial head of the Council. All decisions are taken collectively with the other members of the Council. Local Councils are responsible for the general upkeep and embellishment of the locality, local wardens, and refuse collection; they carry out general administrative duties for the Central Government, such as collection of Government rents and funds and answering Government-related public inquiries.

Principal Government Officials

Last Updated: 2/11/05

President: Edward FENECH ADAMI
Prime Minister: Lawrence GONZI
Dep. Prime Min.: Tonio BORG
Min. for Competitiveness & Communications: Censu GALEA
Min. of Education, Youth, & Employment: Louis GALEA
Min. for the Family & Social Solidarity: Dolores CRISTINA
Min. of Finance: Lawrence GONZI
Min. of Foreign Affairs: Michael FRENDO
Min. for Gozo: Giovanna DEBONO
Min. of Health, the Elderly, & Community Care: Louis DEGUARA
Min. for Justice & Home Affairs: Tonio BORG
Min. for Investment, Industry, & Information Technology: Austin GATT
Min. for Resources & Infrastructure: Ninu ZAMMIT
Min. for Rural Affairs & the Environment: George PULLICINO
Min. for Tourism & Culture: Francis ZAMMIT DIMECH
Min. for Urban Development & Roads: Jesmond MUGLIETT

Governor, Central Bank: Michael BONELLO
Ambassador to the US: John LOWELL
Permanent Representative to the UN, New York: Victor CAMILLERI

Malta maintains an embassy in the United States at 2017 Connecticut Avenue NW, Washington, DC 20008 (202-462-3611).

POLITICAL CONDITIONS

Two parties dominate Malta's polarized and evenly divided politics—the Nationalist Party, led by Prime Minister Lawrence Gonzi, and the Malta Labor Party, led by Alfred Sant. Elections invariably generate a widespread voter turnout exceeding 96%. The margin between the two parties is so narrow that a 52% share of the votes can still be considered a "landslide" for the winning party. Alternattiva Demokratika (Green Party) is the smallest political party. It has not managed to secure a parliamentary seat since its inception in 1989.

A 2003 referendum resulted in a 54% majority popular vote in favor of membership in the European Union. The Prime Minister called an early election in April 2003 for a definite mandate from the electorate. The Nationalists returned to power with 51.8% and 35 seats for a second term, and EU membership was confirmed. The Labor party earned 47.5% and 30 seats, Alternattiva Demokratika had 0.7%, and independent candidates were negligible. Voter turnout was 97%.

On February 10, 2004, the prime minister and long-time leader of the Nationalist Party, Eddie Fenech Adami, resigned. Following his election as Nationalist Party leader, Lawrence Gonzi officially became the Prime Minister of Malta on March 22, 2004. Eddie Fenech Adami assumed the Presidency of Malta on April 4, 2004. The next general elections must take place before October 2008 at the latest. The first elections of European Parliament MPs were held on June 12, 2004 and resulted in the election of two candidates from the governing Nationalist Party and three from the Opposition Malta Labor Party. In 1987, the Maltese constitution was amended to ensure that the party that obtained more than 50% of the popular vote would have a majority of seats in parliament and would thereby form the government. Other amendments made at that time stipulate Malta's neutrality status and policy of nonalignment and prohibit foreign interference in Malta's elections.

ECONOMY

Possessing few indigenous raw materials and a very small domestic market, Malta has based its economic development on the promotion of tourism, accounting for roughly 30% of GDP, and exports of manufactured goods, mainly semi-conductors, which account for some 75% of total Maltese exports. Since the beginning of the 1990s, expansion in these activities has been the principal engine for strong growth in the Maltese economy.

Tourist arrivals and foreign exchange earnings derived from tourism have steadily increased since the late 1970s. Following the September 11 attacks, the tourist industry has suffered some setbacks worldwide. Maltese tourist arrivals fell by a cumulative 7% during 2001 and 2002. At the same time, the bursting of the high tech bubble dampened exports and private investments.

Despite these adverse developments, the relatively flexible labor markets kept unemployment fairly steady at 7.2 (Labor Force Survey Jan – March 2004) Following a decline in GDP in 2001, a modest recovery began in 2002, with some improvements in the tourist sector in the second half of the year. Employment growth, however, remained weak.

The recent low economic growth coupled with corporate bond preference by the private sector has contributed to a weak demand for bank loans. Combined with the strong growth in deposits in the past couple of years, this has led to a rapid buildup of liquidity in the banking system and pressures to reduce interest rates that are fully liberalized. The banking system remains highly concentrated with two of the four local banks accounting for about 90% of total loans and deposits.

The Maltese Government has pursued a policy of gradual economic liberalization, taking some steps to shift the emphasis in trade and financial policies from reliance on direct government intervention and control to policy regimes that allow a greater role for market mechanisms. Malta's accession into the EU will mark the total dismantling of protective import levies on industrial products, increasing the outward orientation of the economy. Malta maintains a longstanding exchange rate peg to a basket of currencies – currently composed of the euro, pound sterling and dollar. The peg has delivered low inflation and served Malta well, especially during the period of liberalization.

The fiscal situation remains difficult despite some progress in consolidating public finances. The budget deficit was brought down from 10.7% of GDP in 1998 to 9.7% of GDP in 2003 (still high by EU standards), mainly through increases in tax rates and improved collection of taxes due. Current expenditures were reduced in the late 1990s but have crawled back up. The public sector wage bill and subsidies to public enterprises were mainly responsible for this increase. Substantial privatization proceeds have limited the increase in public debt, which grew from 24% of GDP in 1990 to almost 72.01% in 2003.

The Maltese Government is expected to shortly announce reforms to the pension and welfare system and reduce the public sector involvement in the economy as part of the mediumterm fiscal consolidation plan. According to the Maltese government plans, the fiscal deficit is expected to go down to 3.5% of GDP by the end of 2005. Economic growth was 1.6% in 2003.

FOREIGN RELATIONS

Malta's diplomatic and consular representation includes accreditation to 88 foreign countries and international organizations. Malta is host to 18 resident diplomatic missions, and 89 countries have non-resident diplomatic representation.

With its central location in the Mediterranean, Malta has long portrayed itself as a bridge between Europe and North Africa, particularly Libya, with whom it has enjoyed positive diplomatic and commercial ties. Malta now constitutes the southernmost flank of the European Union. Malta continues to be an active participant in the United Nations, the Commonwealth (in 2005 Malta will host the Commonwealth Heads of Government Meeting), the Council of Europe, OSCE, the Non-Aligned Movement, and various other international organizations. In these fora, Malta has frequently expressed its concern for the peace and economic development of the Mediterranean region. The Nationalist Party government is continuing a policy of neutrality and nonalignment but in a Western context. The government desires close relations with the United States, with an emphasis on increased trade and private investment. U.S. Navy ships resumed liberty calls in 1992 and currently visit on a regular basis.

U.S.-MALTESE RELATIONS

Malta and the United States established full diplomatic relations upon Malta's independence in 1964; overall relations are currently active and cordial. The United States has been sympathetic to Malta's campaign to attract private investment, and some firms operating in Malta have U.S. ownership or investment. These include major hotels, manufacturing and repair facilities, and some offices servicing local and regional operations.

Principal U.S. Embassy Officials

VALLETTA (E) Address: 3F St. Anne's Street, Floriana; Phone: [356] 2561-4000; Fax: [356] 2124-3229; Workweek: 8:00-4:30

TRAVEL

Consular Information Sheet

December 23, 2004

Country Description: Malta is a small, developed, democratic Mediterranean island, positioned as a cultural and political stepping-stone between Europe and North Africa. Malta became a member of the European Union with nine other new member states on May 1, 2004. Tourist facilities of all categories are widely available.

Entry/Exit Requirements: A passport is required. A visa is not required for U.S. citizens for stays up to 90 days. For more information concerning entry requirements for Malta, travelers should contact the Embassy of Malta at 2017 Connecticut Avenue, N.W., Washington D.C. 20008, telephone (202) 462-3611, website: http://www.foreign.gov.mt/ORG/ministry/missions/washington2.htm, or the Maltese Consulate in New York City, telephone: (212) 725-2345. See our Foreign Entry Requirements brochure for more information on Malta and other countries.

Safety and Security: No indigenous terrorist or extremist groups are known to be active in Malta, and no foreign terrorist organizations have carried out an attack against U.S. interests in Malta in recent years.

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov where the current Worldwide Caution Public Announcement, Travel Warnings and Public Announcements can be found.

Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-317-472-2328. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime: Malta has a low rate of violent crime. Property crime is also relatively low but on the rise in recent years. Theft of unattended personal property and car stereos from vehicles is a common problem. Visitors are strongly encouraged to secure their valuables, and be aware of pickpockets and purse snatches. Such criminals focus on areas and establishments frequented by tourists. Caution is particularly urged in the Paceville nightclub area, where excessive drinking and poor crowd control have led to instances of violent behavior. Poverty, homelessness and panhandling are almost nonexistent in Malta. All visitors to Malta should practice the same good, common sense personal security practices that are part of everyday life in urban areas within the U.S., particularly when spending time in areas frequented by tourists.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed. See our information on Victims of Crime at http://travel.state.gov/travel/brochure_victim_assistance.html.

Medical Facilities and Health Information: Medical care is available through public and private hospitals. The quality of medical care in Malta is excellent. Private hospitals generally offer a higher standard of service than the public hospitals, and most of the doctors practice in private medical facilities.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via the CDC's Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Malta is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Traffic in Malta flows on the left, requiring attentiveness and caution from visitors from right-hand drive countries such as the Unites States. In addition, drivers may be erratic or undisciplined. Roads flood easily, and are often narrow, winding, and congested, with poor visibility around curves. Traffic arteries are prone to bottlenecks and accidents. Buses are the primary means of public transportation. Though the bus fleet is being modernized, most buses are old, cramped, and nor air-conditioned. Taxis are safe but expensive and are not metered; it is good practice to agree with the driver in advance on the charge.

For specific information concerning Malta driving permits, vehicle inspection, road tax, and mandatory insurance contact the Malta national tourist organization offices in New York City via the Internet at http://www.visitmalta.com.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Malta as being in compliance with ICAO international aviation safety standards for oversight of Malta's air carrier operations. For more information, travelers may visit the FAA's internet web site at http://www.faa.gov/avr/iasa/index.cfm.

Special Circumstances: Malta's customs authorities may enforce strict regulations concerning currency restrictions and temporary importation into or export from Malta of items such as firearms, antiquities, and any item that might be deemed to have resalable value. It is advisable to contact the Embassy of Malta in Washington or the Consulate of Malta in New York City for specific information regarding customs requirements. Malta custom's authorities encourage the use of an ATA (Admission Temporaire/Temporary Admission) Carnet for the temporary admission of professional equipment, commercial samples, and/or goods for exhibitions and fair purposes. ATA Carnet Headquarters, located at U.S. Council for International Business, 1212 Avenue of the Americas, New York, N.Y. 10036, issues and guarantees the ATA Carnet in the United States. For additional information call (212) 354-4480, send an e-mail to [email protected], or visit http://uscib.org for details.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offences. Persons violating Malta's laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Malta are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in illicit sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues: For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family/index.html.

Registration/Embassy Location: Americans living or traveling in Malta are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration website, https://travelregistration.state.gov, and to obtain updated information on travel and security within Malta. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency. The U.S. Embassy is located on the third floor of the Development House, St. Anne Street, Floriana, Valletta, telephone (356) 2561-4000. The Consular Section's telephone number is (356) 2156-4115, fax: (356) 2124-3229, website: http://usembassy.state.gov/malta/wwwhcons.html. The Consular Section is open to the public Monday, Wednesday, and Friday from 8:00 a.m. to 11:00 a.m.