Stabbiltà Initiative – FAQs

In response to unprecedented global challenges such as the COVID-19 pandemic, the Russia-Ukraine War, Middle East conflicts, and the United Kingdom’s departure from the European Union, businesses and families worldwide, including ours, have faced economic uncertainties. Despite these challenges, the Maltese Government has steadfastly supported citizens and businesses with various measures, including subsidies, aid schemes, and stimulus cheques. Despite these efforts, food price-related inflation reached 7.5% in November 2023. This initiative aims to combat inflation, ensuring the resilience and competitiveness of the Maltese economy.

To maintain stability in essential food prices, the Government, through the Ministry for the Economy, has collaborated with major food importers and sellers. An agreement has been reached for a nine-month period starting February 1, 2024, ensuring stable prices and a minimum 15% reduction in Recommended Retail Price (RRP) for 15 food categories most susceptible to inflation.

The RRP is set by importers and passed on to retailers. However, retailers may choose to stick to or lower this price based on various factors.

The 15% discount is on the Recommended Retail Price as of October 31, 2023.

The reduction depends on various factors, and while some products may see a full 15% drop, others, already priced below RRP, may have a lower percentage reduction.

The initiative starts on February 1, 2024.

The agreement lasts until the Government announces the Budget for 2025, providing stability for over nine months.

No, only 15 specific categories have been identified, covering over 400 products. Efforts are made to extend benefits to other categories.

15 categories of food products were identified as the ones which are most susceptible to inflation and consumed the most (staple foods) by the local population, and following extensive discussions between the Government and the importers and the retailers, an agreement was reached to lower their RRP by a minimum of 15% and to keep their RRP stable. The categories reflect also the most widely used products and which have a significant impact on those with low and medium income. We have made sure to include a wide range of products to suit the tastes of as many consumers as possible.

The agreed categories are as follows:

Over 400 products are estimated to be positively affected.

While local products are encouraged, some categories include both local and imported items, and transport costs impact imported products.

People with Celiac Disease can already apply for vouchers for gluten-free food, ranging from €65 to €70 per month.

The ekonomija.gov.mt website will provide a list of participating establishments, and discounted products will be labeled accordingly.

The discount applies to every brand within the specified category.

Products were sold at market prices, and participating businesses are temporarily reducing their mark-up as a form of Corporate Social Responsibility.

Yes, it applies to both in-store and online purchases.

No, prices reflected market rates. This initiative is a temporary measure to benefit consumers.

Efforts are made to involve as many importers and retailers as possible. Small businesses are encouraged to join.

Smaller shops can apply through a dedicated form on ekonomija.gov.mt starting January 18, 2024, with a fixed grant introduced for compensation.

Yes, there are no eligibility criteria. All consumers can benefit from discounted and stable prices.

The government will monitor for abusive behaviors and ensure fair practices through its authorities.

Complaints can be made by calling Freephone 153 or sending an email to stabbilta@gov.mt.

Yes, retailers can offer higher discounts if they choose to do so.

Inflation is expected to subside over the next 10 months, and the government will closely monitor progress and continue supporting the population.

Absolutely! We welcome your participation in the Stabbiltà initiative. However, it’s important to note that the terms and conditions of the initiative specifically apply to products under the categories associated with participating importers. As the initiative is based on a 15% discount on the Recommended Retail Price (RRP), only products from importers who have joined the initiative fall under this discount structure.

While we encourage you to embody the spirit of the Stabbiltà initiative by extending the discount to all your products, your official participation is limited to those specific products within the categories of participating importers. We strongly recommend initiating a dialogue with your importer before deciding to join the initiative to ensure alignment and clarity.

To achieve the 15% reduction in the Recommended Retail Price, a collaborative effort is undertaken by importers and retailers. This reduction is balanced to ensure fair impact on both parties. Specifically, it involves a 4.4 point decrease in the Retailer’s margin and the remainder covered by the Importer. For example, if a retailer has a 25% margin, they would deduct 4.4 points, resulting in a new margin of 20.6%. The rest of the contribution comes from the importer. This approach ensures an equitable distribution of the RRP reduction.

The first period shall be regarded as a transitionary period. This means that, following inspection, if an establishment is found non-compliant in terms of the pricing of products under the Stabbilta’ scheme, but is subsequently found to have rectified irregularities during a follow-up check, the grant shall be paid in full from the date of the application. If however, an establishment is still found to be non-compliant even after a follow-up check, then the whole grant amount for the period shall be witheld.

Grants for the second period (May to July 2024) will be paid only after onsite inspections are carried out by monitoring officers at the Ministry for the Economy, Enterprise and Strategic Projects. Following inspection, the percentage of grant shall be calculated according to the table below. An establishment shall be deemed compliant if the prices of the poducts under Stabbilita’ are in line with the scheme.

In exceptional circumstances, a second check (separate from the follow-up check) may be performed even if the establishment was previously found compliant (for example, following a complaint lodged at the Ministry by members of the public). Similarly, an exceptional inspection may also be performed even after the establishment was found non-compliant in a follow-up check but shows willingness to regularise himself. In such cases, the following percentages shall apply: