Malta faces ongoing concerns over corruption and the rule of law following the acquittal of businessman Yorgen Fenech in the 2017 murder of investigative journalist Daphne Caruana Galizia. Fenech, who denies involvement and allegations of paying a middleman €150,000 to carry out the assassination, was cleared of charges by an 8-1 jury majority, a verdict that has sparked widespread disbelief in Malta and beyond.

The acquittal came under scrutiny during the opening of a Council of Europe inquiry into judicial failures connected to Caruana Galizia’s death. The inquiry is being led by Shami Chakrabarti, a Labour peer and former head of the human rights organization Liberty. Chakrabarti emphasized that almost nine years on, no mastermind behind the killing has been held accountable and warned that Malta remains at risk of "repeated instances of high-level corruption" unless the rule of law and legal protections for journalists are strengthened.

At the inquiry’s first hearing, Caruana Galizia’s eldest son, Matthew, and her sister, Corinne Vella, questioned the verdict, highlighting public dissatisfaction. Matthew Caruana Galizia told the council’s committee on legal affairs and human rights that the majority of Maltese people who had seen the evidence believed Fenech to be involved, expressing shock at how the jury reached its decision. Vella remarked that the verdict had extinguished hopes of ending impunity for major crimes and said journalists investigating similar allegations now feel unsafe.

Malta’s state prosecutor is reportedly preparing an appeal with the aim of obtaining a retrial. The case has drawn concern from international representatives, who called for intervention from the European Parliament and European Commission. Romanian politician Iulian Bulai suggested the European Union should consider applying the rule of law conditionality mechanism, a measure previously utilized against Hungary in 2022, which could involve withholding EU funds to prompt judicial reforms in Malta.

Malta, the EU’s smallest member state with around 600,000 residents, receives more financial support from the bloc than it contributes, with estimates indicating a net gain of about €2.4 billion since Malta joined the EU 22 years ago.

The public inquiry into Caruana Galizia’s murder previously concluded that although there was no direct evidence implicating the Maltese state, a climate of impunity had been fostered. It recommended the adoption of stricter anti-corruption measures, such as Italian-style anti-mafia laws and criminalizing interference with police investigations and public office abuses. However, these recommendations remain largely unimplemented.

Chakrabarti drew parallels between Malta’s situation and other high-profile miscarriages of justice in the UK, such as the Grenfell Tower fire and Hillsborough disaster, stressing the importance of thorough investigation and reform. She indicated that the inquiry, titled “Justice delayed: the Why?” could conclude within a year, aiming to shed light on systemic failures and provide guidance for preventing future miscarriages of justice and guarding press freedom in Malta.