The Maltese government announces tax reductions for parents with two or more children, in an attempt to stimulate birth rates.

The Maltese government announced on Monday a series of tax reductions aimed at parents with two or more children, as part of efforts to counteract the country's demographic decline. Finance Minister Clyde Caruana emphasized in parliament that the low birth rate among the native population represents 'the greatest challenge' for Malta. In his budget speech for 2026, Caruana stated that it is essential to encourage families to have at least two children. According to a Eurostat report, Malta recorded the lowest fertility rate in the European Union in 2023, with only 1.06 children per woman. This initiative comes in response to these alarming statistics.