EU releases €18.9m to Malta but holds back funds over tax reform

EU releases €18.9m to Malta but holds back funds over tax reform
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The European Commission has disbursed €18.9 million to Malta, its fourth payment under the EU’s Recovery and Resilience Facility, part of the NextGenerationEU post-pandemic funding programme.

The payment followed an assessment of Malta’s request, submitted on 19 December 2025, and a partial approval issued on 20 March 2026, the Commission said on Wednesday.

It declared that Malta had “satisfactorily completed” the milestones and targets linked to the payment set out in a Council implementing decision.

Measures tied to the funding include reforms and investments aimed at cutting emissions from energy and transport, improving the efficiency of judicial administration, and enhancing education and healthcare services.

The money was released after the Council approved the disbursement and the Commission adopted a payment decision.

One milestone still outstanding

One milestone linked to the request has not yet been fulfilled and relates to a tax reform intended to curb aggressive tax planning practices, the Commission said.

It added it would consider paying the remaining funds once Malta addresses that outstanding milestone.

Payments under the Recovery and Resilience Facility are performance-based, meaning they depend on countries meeting agreed steps in their national plans.

Member states must complete all remaining milestones and targets by August 2026 and submit their final payment requests by the end of September 2026, ahead of the Facility closing at the end of 2026.


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