The Maltese archipelago is strategically located, lying between Europe and north Africa. Controlled throughout its history by successive colonial powers, Malta finally gained independence from the UK in 1964. The islands are mainly low-lying, with rocky coastlines; only Malta, Gozo (Ghawdex), and Kemmuna are inhabited. Tourism is Malta's chief source of income, with an influx of tourists each year of over three times the islands' population.

Malta's population has been subject over the centuries to diverse Arabic, Sicilian, Norman, Spanish, English, and Italian influences. Today, many young Maltese go abroad to find work, especially to the USA or Australia; opportunities for them on the islands are few.

The Maltese are staunch Roman Catholics, on a percentage basis more so than virtually any other nation. The remainder are mainly Anglicans, who are included within the diocese of Gibraltar. Divorce is illegal.

Strengths

Tourism and naval dockyards. Schemes to attract foreign high-tech industry. Malta Freeport container distribution center. Offshore banking. Strategic position between Europe and Africa, on main Mediterranean shipping lines.

Weaknesses

Cut-rate competition from Africa and Asia in traditional textile industry. Need to import almost all requirements.

Maltese politics is strongly adversarial and evenly split between the right-wing NP and the left-wing MLP. The latter dominated government in the 1970s and 1980s, ensuring state control of industry and pursuing a nonaligned foreign policy.

The 1990s, however, saw a switch in favor of the NP, with Prime Minister Edward Fenech Adami at the helm in 1987–1996 and since 1998. Under Fenech Adami, Malta moved toward ever closer ties with Europe, and favors a free-market approach to its economy. The NP secured reelection in 1992, largely due to a rise in living standards. A modernized MLP ended the NP's nine-year reign in 1996. Under Alfred Sant, a leading writer and Harvard MBA, it diluted traditional links with the unions and "froze" Malta's EU application. However, the MLP's small parliamentary majority undermined the government, and the NP won early elections in 1998. Fenech Adami has now reset Malta on its course for membership of the EU.

Malta has made the most of its location on the fringe of Europe, with a staunchly nonaligned foreign policy. Ties are traditionally strong with the Arab world and north Africa, and relations with Libya remain good. There are also close commercial links with Russia and China.

However, it is the island's relationship with Europe that has dominated recent policy. Malta's bid for EU membership, launched in 1990, was derailed by the anti-EU MLP government in 1996. With the application frozen, Malta was denied a place in the "first wave" of potential EU members. However, the return to power of the pro-EU NP in 1998 restarted the bid and Malta joined talks in March 2000 as part of the "second wave."

The Maltese army, advised by the Libyans in the 1980s, now receives training and equipment from Italy, Germany, and the UK.

Malta is dependent on desalination plants for most of its water supply. All oil has to be imported, mostly from Libya. However, there are petroleum reserves under exploration in Maltese waters.

The main environmental concern is linked to the tourist industry. A lack of planning controls in the 1970s was responsible for unsightly beach developments. These are now tightly controlled, particularly on Gozo.

Malta Freeport at Marsaxlokk exploits Malta's strategic shipping location in the Mediterranean. In summer, a five-minute helicopter flight from the international airport links the islands of Malta and Gozo. There is a well-developed public transportation system, with ferry and hovercraft services and buses on both islands.

Malta has five state-run and a couple of private hospitals. Diabetes is prevalent, as on other Mediterranean islands.

One-third of pupils attend non-state schools, including heavily subsidized church-run institutions. There is a state university in Valletta.

Crime rates are low compared with those on the European mainland. There has been an increase in narcotics transshipment and associated crimes.

Remittances from Maltese working abroad are an important source of income for many island families.

Tourism is vital to the economy and accounts for more than 30% of GDP, even though most visitors are budget vacationers. In addition to beaches and scenery, there are the historical attractions of Mdina and Valletta. Development on the quieter island of Gozo is limited to luxury-grade hotels.

Ancient Malta was dominated by Phoenicians, Carthaginians, Greeks, and Romans; later it was ruled by the Arabs, Norman Sicily, Spain, France, and, finally, the UK.

• 1947 Internal self-government.
• 1964 Full independence from UK.
• 1971 Dom Mintoff's MLP in power.
• 1987–1996 Edward Fenech Adami (NP) premier.
• 1998 Early elections bring pro-EU Fenech Adami back to power after brief MLP interlude.