Malta pays drivers €5,000/year to give up their driver’s license

On the island of Malta, they are tackling traffic congestion with a remarkable measure: young drivers (aged 18-30) will receive 25,000 euros when they hand in their driver’s license for five years. The Maltese government introduced the measure to reduce the growing number of cars on the road. 

The new regulation was introduced in January and applies only to residents aged 30 or under who have their own passenger car and at least seven years of driving experience in Malta. Anyone who hands in their driver’s license receives an annual payment of at least 5,000 euros for five years.

Second-busiest traffic in the world

With over 450,000 vehicles – about 20 percent more than ten years ago – for 574,000 residents, narrow streets are often gridlocked, especially in October.  Malta is also the country with the second-busiest traffic flow in the world after Colombia, according to the most recent TomTom Traffic Index, an annual report that analyzes global traffic congestion. That leads to heavy traffic jams, accidents, air pollution, and economic damage.

Policymakers acknowledge that the €25,000 premium will not solve all traffic problems. However, with the new measure, they hope to get a better grip on the growing problem.

Legal sanctions

Cheating will be severely punished. Anyone who attempts to collect the money and then continues driving the car will receive a fine of 5,000 euros, in addition to the legal sanctions for driving without a license. Furthermore, the remaining subsidy amount must also be repaid from the day of the offense until the end of the license suspension.

Those who do adhere to the rules can apply for a new driver’s license after five years, provided they take another 15 hours of driving lessons at a recognized driving school.

Free public bus transport

Malta, officially the Republic of Malta, is an island country in Southern Europe, located in the Mediterranean Sea, between Sicily and North Africa. The island had previously taken a series of initiatives to improve mobility. For example, the government decided to make public bus transport free, among other things.

 Malta is a small island, so you can cross it in about an hour. The roads are safe, and the signs are in English. Cars in Malta drive on the left-hand side of the road, a legacy from the country’s years under British rule, and roundabouts are clockwise.

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