Maltese Politics
Dalli was first elected to the House of Representatives of Malta in 1987 on behalf of the Nationalist Party and since then he has been re-elected in five successive elections: in 1992, 1996, 1998, 2003 and 2008. He has served as Parliamentary Secretary for Industry (1987–1990), Minister of Economic Affairs (1990–92), Minister of Finance (1992–1996, 1998–2004) and Minister of Foreign Affairs and Investment Promotion (2004). During his tenure at the Ministry of Finance (the longest in Maltese political history), Dalli is best remembered for his modernisation of the taxation system through the introduction of VAT in 1994 and again in 1998.
From 1987 to 1996 and from 1996 to 2004 Dalli served as co-chairman of the Libyan-Maltese Joint Commission, during which time he led the renegotiation of all political and economic agreements between Malta and Libya to bring them in line with the EU acquis.
In February 2004 Dalli contested the election for the leadership of the Nationalist Party but lost to Lawrence Gonzi who was appointed Prime Minister. In the new Cabinet Dalli was appointed Minister of Foreign Affairs and Investment Promotion. However, he resigned after serving for only three months from April to July 2004, citing attacks by members of his own party, following allegations into awards of contracts for medical equipment and airline ticketing. All allegations against him were proven false, by the auditor general and by the police. The person who appeared as the author of the allegations was sentenced for two years in prison. Dalli remained a backbench MP. In 2007 the Prime Minister, after admitting that accusations against Dalli had been disproved, appointed Dalli as a personal consultant.
Dalli was re-elected to the House of Representatives in the March 2008 general election and returned to the Cabinet as Minister for Social Policy. His portfolio included health, the elderly, employment and training, housing and industrial relations. Joe Cassar and Mario Galea were appointed Parliamentary Secretaries for Health and for the Elderly and Community Care respectively to assist him.
He resigned as Minister and as Member of Parliament on 10 February 2010 on his appointment as European Commissioner.
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