Malta's low fertility rate : the implications for the political economy of the smallest EU member state

Abstract

This study investigates the implications of Malta's low fertility rate for its political economy, highlighting the challenges and policy consequences for the EU's smallest member state. Malta's demographic dilemma, characterised by the lowest fertility rate in the European Union, poses significant questions about its future economic sustainability, workforce dynamics, social welfare systems and cultural identity. Through an in-depth analysis that combines secondary sources, quantitative data, qualitative insights from key stakeholders, this study explores the multifaceted relationship between demographic trends and economic policies, labour market transformations, social welfare provisions and shifts in societal norms and gender roles. The research identifies several key factors influencing Malta's fertility rates, including economic development, changing societal values, evolving gender roles and the balance between work and family life. It also examines the broader implications of these demographic trends for Malta's political economy, including the sustainability of social welfare systems, the interplays of the labour market and the potential for cultural shifts in Maltese society. By situating Malta's experience within the larger discourse on population ageing and low fertility rates in developed economies, the study provides a nuanced understanding of the complex factors at play, and offers policy recommendations aimed to address the demographic challenges. The findings underscore the importance of comprehensive policy strategies that integrate economic, social, and cultural interventions to support family life and fertility, ensuring Malta's economic and social sustainability in the face of demographic transformation.