Malta
GANG INFORMATION
PROFILE
Official Name:
Republic of Malta
Geography
Area: 316 sq. km. (122 sq. mi.); about one-tenth the size of Rhode
Island.
Major 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 divisions: Mixture of Arab, Sicilian, Norman, Spanish,
Italian, English.
Religion (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.
Labor 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 3,000 (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
President--Eddie Fenech Adami
Prime Minister--Lawrence Gonzi
Minister of Foreign Affairs--Michael Frendo
Ambassador to the United States--John Lowell
Ambassador to the United Nations--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 long-standing 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 medium- term 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
Ambassador--Molly Bordonaro
Deputy Chief of Mission--William Grant
Consul General--Michael Troje
Public Affairs Officer/Director, The American Center--Jeff Anderson
Political Counselor--Matthew Kurlinski
Economic Counselor--Timothy Briscoe
Information Management Officer--Christian Jones
Management Officer--Jonathan Schools
Regional Security Officer--Richard Ober
General Services Officer--Isobel Miller
Defense Attache--Philip Munaco
Community Liaison Officer--Cindy Belnomi
Customs Officer--Leonard Freedman
The U.S. embassy in Malta is located in Development House, St.
Anne Street, Floriana; tel: (356) 21 235-960; fax: (356) 21 243-229;
web page: http://usembassy.state.gov/malta/
TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program provides
Consular Information Sheets, Travel Warnings, and Public Announcements.
Consular Information Sheets exist for all countries and include
information on entry requirements, currency regulations, health
conditions, areas of instability, crime and security, political
disturbances, and the addresses of the U.S. posts in the country.
Travel Warnings are issued when the State Department recommends
that Americans avoid travel to a certain country. Public Announcements
are issued as a means to disseminate information quickly about
terrorist threats and other relatively short-term conditions overseas
that pose significant risks to the security of American travelers.
Free copies of this information are available by calling the Bureau
of Consular Affairs at 202-647-5225 or via the fax-on-demand system:
202-647-3000. Consular Information Sheets and Travel Warnings
also are available on the Consular Affairs Internet home page:
http://travel.state.gov. Consular Affairs Tips for Travelers publication
series, which contain information on obtaining passports and planning
a safe trip abroad, are on the Internet and hard copies can be
purchased from the Superintendent of Documents, U.S. Government
Printing Office, telephone: 202-512-1800; fax 202-512-2250.
Emergency information concerning Americans traveling abroad may
be obtained from the Office of Overseas Citizens Services at (202)
647-5225. For after-hours emergencies, Sundays and holidays, call
202-647-4000.
The National Passport Information Center (NPIC) is the U.S. Department
of State's single, centralized public contact center for U.S.
passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778).
Customer service representatives and operators for TDD/TTY are
available Monday-Friday, 8:00 a.m. to 8:00 p.m., Eastern Time,
excluding federal holidays.
Travelers can check the latest health information with the U.S.
Centers for Disease Control and Prevention in Atlanta, Georgia.
A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm
give the most recent health advisories, immunization recommendations
or requirements, and advice on food and drinking water safety
for regions and countries. A booklet entitled Health Information
for International Travel (HHS publication number CDC-95-8280)
is available from the U.S. Government Printing Office, Washington,
DC 20402, tel. (202) 512-1800.
Information on travel conditions, visa requirements, currency
and customs regulations, legal holidays, and other items of interest
to travelers also may be obtained before your departure from a
country's embassy and/or consulates in the U.S. (for this country,
see "Principal Government Officials" listing in this
publication).
U.S. citizens who are long-term visitors or traveling in dangerous
areas are encouraged to register their travel via the State Department’s
travel registration web site at https://travelregistration.state.gov
or at the Consular section of the U.S. embassy upon arrival in
a country by filling out a short form and sending in a copy of
their passports. This may help family members contact you in case
of an emergency.
Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov,
the Department of State web site provides timely, global access
to official U.S. foreign policy information, including Background
Notes and daily press briefings along with the directory of key
officers of Foreign Service posts and more.
Export.gov provides a portal to all export-related assistance
and market information offered by the federal government and provides
trade leads, free export counseling, help with the export process,
and more.
STAT-USA/Internet, a service of the U.S. Department of Commerce,
provides authoritative economic, business, and international trade
information from the Federal government. The site includes current
and historical trade-related releases, international market research,
trade opportunities, and country analysis and provides access
to the National Trade Data Bank.
