Italy is the closest European neighbour to Malta. We all can think of something when we hear the name Italy, as Italy is just much larger and more present than Malta. These two EU states are connected in many ways, and in today’s post I would like to illuminate some of these points in more detail.
Strong economic ties
Since Malta is a very small island state, they have to import many goods. Italy plays a major role in that. Foodstuffs are mostly imported from Italy. You can notice this especially when you go to a Lidl supermarket. They Lidl stores in Malta are operated by an Italian franchisee, and the products are all imported from Italy. But there are not only close relations with regards to food, also services are often carried out by Italian companies. At the office of Dr. Wrner & Partner we often have Italian clients who want to achieve tax advantages by establishing a new business venture in Malta.
Malta has a better economic development despite similarities with Italy
The banking and Euro crisis hit Italy with full force. The government was replaced and Mario Monti was able to save the Mediterranean state from a total collapse. However, there are many sceptics that foresaw Italy fall just like Greece. This cannot be said about Malta. The island has gone relatively unscathed through the crisis, also thanks to a solid banking sector. The unemployment rate in Malta is around 6.8% which is well below Italy’s quota of 12.6%. Overall, the Maltese economy is better and more stable.
Culture and climate are similar
Also in terms of culture, some similarities can be observed. The strong Catholic faith, and the importance of the family are just some of them. The Mediterranean climate is present in both countries, as well as similarities in the cuisine. The people have a lot of temperament and if the language would not be different you could not be always sure if two Maltese or two Italians were fighting. However, in the end, the Maltese retained some values from the British colonial period when it comes to political correctness. As you can see, there are many similarities between Malta and Italy, but both are unique and special in their own way.
