Maltese ruling party may survive murder scandal

Significance

The investigation into the assassination of prominent journalist Daphne Caruana Galizia has taken a dramatic turn with the interrogation of senior Maltese government officials, the arraignment of a prominent business tycoon and the prime minister’s announcement that he will resign in January.

Impacts

• Investigation of Caruana Galizia’s murder and large-scale corruption on government contracts will continue apace with unpredictable results.
• State institutions’ independence and government corruption will remain in the international spotlight.
• Malta will continue to come under significant scrutiny in EU institutions.
• Investigations into lucrative government contracts signed under the Labour administration will gain momentum and others may be opened.
• The political crisis will prove detrimental to business confidence.