Prof. Godfrey Baldacchino has described Malta as a "nationless state," writing that its identity has been more heavily influenced by external integration efforts — whether with Britain, Italy, or the EU — rather than by unified internal nationalism.1 Malta’s historical dependence on external powers, from British colonial ties to cultural links with Italy, underscores a political trajectory rooted in alignment with larger entities rather than the pursuit of outright independence. The EU accession debate of the early 2000s brought these issues to the forefront, sparking discussions about Maltese sovereignty, nationalism, and the tension between preserving national characteristics and embracing European integration. Despite strong cultural markers like language, Catholicism, and shared historical experiences, Malta’s political identity has consistently been influenced by these external influences and a lack of nationalistic movements.

Malta’s accession to the European Union (EU) on May 1, 2004, marked a significant turning point in its history. As Malta celebrates 20 years of EU membership, this work examines the extent to which the island has benefitted economically, socially, and in terms of its national identity. It explores the successes and challenges of integration, reflecting on how Malta has navigated its unique position as the smallest EU member state by population and geographic size within a larger political framework. Two decades later, an assessment of its economic, societal, and identity-related impacts reveals both opportunities and tensions even though the European Commission Eurobarometer National Report (2023) shows that Maltese citizens report overwhelmingly positive feelings about membership.

Notably, the most profound, yet intangible impact of EU membership has been that on Malta’s national identity. As a former British colony, Malta’s accession required balancing its sense of sovereignty with the realities of integration into a supranational entity. Now more than ever, EU membership necessitates alignment with collective European policies, often viewed as encroachments on national sovereignty resulting in a persistent undercurrent of scepticism about ceding too much authority to the EU. Malta's dual identity as both European and Mediterranean influences its policies on migration, trade, and foreign relations. For example, Malta often acts as a bridge between Europe and North Africa, advocating for dialogue and cooperation.

However, this dual role creates tension, especially when Malta is pressured to enforce EU migration policies that clash with its cultural and geographical ties to the Mediterranean resulting in persistent policy ambivalence. Policy debates, even those about modern challenges like climate change or AI regulation, are often viewed through a partisan lens rather than as national imperatives. Efforts to modernise (e.g., liberal social policies, advancing digital infrastructure) sometimes clash with traditional Maltese values, particularly those rooted in Catholicism and local traditions, and thus Malta continues to grapple with reconciling rapid modernisation while preserving its unique identity. One area of contention has been neutrality, enshrined in Malta’s Constitution, which some argue is at odds with the EU’s Common Security and Defence Policy and while Malta has maintained its neutral stance, questions persist about the compatibility of this principle with deeper EU security cooperation.

The self and identity are not so distinct from the broader social framework. If one were to refer back to migration, it remains a point of contention, and a double-edged sword. As an EU peripheral state, Malta faces disproportionate responsibilities under the Common European Asylum System placing significant pressure on resources and infrastructure, leading to various discussions on solidarity and burden-sharing within the EU.2 Although Malta has benefitted from EU funding for migration management, public opinion often reflects frustration with the perceived lack of equitable burden-sharing among member states and becomes a flashpoint for broader concerns about identity, sovereignty, and Malta's role within the EU.

On the other hand, one must note that programs such as Erasmus+ have expanded opportunities for Maltese students to study and work abroad, fostering a generation with broader cultural exposure and skills. Similarly, EU membership has enhanced healthcare standards, with citizens benefitting from access to healthcare services across member states under the EU’s cross-border healthcare directive. Socially, EU membership has also led to legal reforms that align Maltese law with EU standards particularly within the realm of gender equality, anti-discrimination measures, and environmental protections.

On the economic front, Malta’s membership in the EU Single Market has facilitated trade and investment, boosting sectors like financial services, gaming, and tourism. Membership has provided our island with regulatory stability, which attracted foreign direct investment (FDI). The island became a competitive destination for financial services, gaming, and pharmaceuticals, sectors that now contribute significantly to its GDP. EU Structural and Cohesion Funds have financed vital infrastructure projects, including airport modernisation and road upgrades, and membership has harmonised Malta’s legal and regulatory frameworks with EU standards, boosting investor confidence. Additionally, through the adoption of the euro, Malta no longer has to deal with the risks of managing a small and independent currency. This shift contributed to reducing the country’s deficit to more sustainable levels, enabling Malta to navigate the global financial crises with relatively minimal impact on its economy. However, challenges have emerged as Malta has had to navigate EU directives that impact its fiscal autonomy, including scrutiny of its taxation system, criticized as fostering tax avoidance.

Malta’s historical "ambivalence" continues to influence its role as a small state navigating between tradition and modernity, localism and globalisation, and European integration and Mediterranean distinctiveness. To be Maltese is to confront the always constructed nature of what it means to be ‘European’ and what it means to be the ‘Other’. After 20 years of EU membership, Malta’s story exemplifies the intricate interplay between integration and sovereignty. Its experience underscores the resilience of small states in shaping and being shaped by the European project which is to be seen as the sum of its constituent parts and vice versa.

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1 A Nationless State? Malta, National Identity and the EU - Godfrey Baldacchino
2 https://www.gisreportsonline.com/r/malta-eu-migration/

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30 May 2022

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Malta at Twenty - Economic, Societal, and Identity Impacts of EU Membership