The future of the paternalist state in Malta

Abstract

Theories on paternalism question state intervention and whether the state may use its coercive force in public life limiting individuals' freedom. Theoretical discourse identifies instances when state intervention is justifiable, however literature does not sufficiently address the causes which lead the state to assume a paternalist role. This dissertation places paternalism as a dependant variable arising from Malta's economic vulnerabilities. In 1992, the International Community recognized Malta as a SIDS. Though Malta has emancipated from this status, this dissertation maintains that the permanent vulnerabilities related to Malta which feature as typical characteristics of SIDS, have over the years, instigated the state in Malta to assume a paternalist image with a significant degree of state intervention attain the desirable standard of socioeconomic development. Literature on SIDS reveals that state intervention is crucial for their socio-economic development; consequently the role of the state is more pronounced. This dissertation investigates whether the tradition of state paternalism in Malta is challenged by the regulations of the EU internal market. It questions in which economic sectors should the state in Malta assume a prominent role and whether this role is justifiable. In this thesis, I develop arguments to assess the impact of state aid regulations on individual economies. I also maintain that it is justifiable for the EU to adopt differentiated treatment on grounds of permanent economic vulnerabilities when implementing its policies throughout Member States. In this framework, I present as a case study the restructuring process that Air Malta plc is currently undergoing and the insights of various stakeholders in policy making and the economy reg The results indicate that the state still has a unique role to fulfill in enabling a thriving environment and that it is compelled to intervene in strategic areas which sustain Malta's economy, even if profit-maximization cannot be secured.