Malta has launched a new €25,000 young drivers licence scheme aimed at reducing traffic congestion, offering financial incentives to under-30s who voluntarily give up their driving licences for five years.
The initiative, introduced by Transport Malta, provides participants with annual payments of €5,000, provided they do not drive at all during the agreed period. Applicants must surrender all licence categories and commit to not driving in Malta or abroad.
With one of the highest vehicle densities in Europe, Malta continues to face significant congestion pressures. The government hopes that reducing the number of active drivers will ease strain on road infrastructure while encouraging greater use of alternative transport.
However, early uptake has been modest, with around 100 participants reported so far. Questions have also been raised about whether the scheme is targeting those who contribute most to congestion.
For driver and rider trainers, the scheme highlights a notable shift in transport policy thinking, where reducing licence holding is being considered alongside traditional road safety and mobility strategies.
Key considerations include:
- The potential impact on future demand for driver training
- The role of retraining for those returning to driving after extended breaks
- Wider policy debates around balancing congestion reduction with mobility access
Participants who wish to resume driving after five years must complete additional training before reapplying for a licence, reinforcing the importance of structured re-entry into driving.
While the scheme represents an innovative approach, its long-term effectiveness remains uncertain. Experts suggest that financial incentives alone may not deliver meaningful reductions in congestion without parallel investment in public transport and infrastructure.
