Labour Leader and Prime Minister Joseph Muscat said the European Union must realise that austerity had failed and that swift reforms through a common sense approach are essential because the failed policy has not only affected problem countries, but the whole bloc.

Dr Muscat's speech was seemingly headed towards a sceptical analysis of the EU's relevance to Malta, however his tone changed. "Some might say that we should not care about the problems in Europe. But we should. We form part of that family and we want to see everyone perform better so we can all enjoy the results," said Dr Muscat.

"But we must remember that while we are European, we are also part of a bigger world. We are Maltese within Europe and within the Mediterranean. But we are also part of a globalised world," he said.

Dr Muscat pointed fingers at the previous administration for adopting an approach that did not go beyond being part of the EU. "They were living in the times of Gallileo, where people thought that the world was flat and that you could fall off the end if you sailed too far," he said.

Dr Muscat gave a damning verdict of austerity, saying that the policy had obviously not worked.

"I am an incurable optimist and that is how I am going to remain. Europe is procrastinating and many are stuck in the past. The EU needs reforms and must move away from policies that do not work and are unsustainable. Austerity is one of them," he said.

"Europe cannot continue to implement systems that have failed before. We need to shift mindset and we a common sense approach within Europe," he said.

Dr Muscat said he wanted Europe to look at Malta as an example of that common sense approach. "Slack behaviour and rigidity has seen countries taken to the brink. To spread wealth, Europe needs to create it. We need to be relevant and we need to stick to agreements," he said.

Dr Muscat said that one of Malta's many assets was that it was a natural bridge - physical and metaphorical - between one culture and another. "It is our Mediterranean identity. We understand both sides. We have the religion of one culture and the language of another. We have the weather of one culture and the democratic credentials of the other," he said.

Dr Muscat said the wording of Malta's neutrality clause might be outdated and needs to be changed, but that the spirit of what this country stands for should remain the same. Neutrality, he said, needed to reflect a natural place for people to come together to find peaceful solutions for the future. 

The economy

“Why is Malta forging ahead while other countries are at a standstill. Why is Malta successful and why have we moved out of the rut of a stuttering economy ? Why is our economy performing at the best levels we have ever seen? Malta’s optimisim is lighting up the region, that’s why,” said the Prime Minister.

 Dr Muscat said that his government had a “can do and let’s do” approach. “What others thought was impossible, we have made possible. We no longer live in a country where politicians justified their inability to move with the times in order to keep the status quo,” he said.

Dr Muscat said that his government was challenging this mentality. “A problem is a challenge, but we face up to challenges and we find solutions,” he said.

Referring to the announcement that former PN Lija Mayor had joined the Labour ranks, Dr Muscat said: “This movement is growing and will continue growing as we saw today. It was not an election that united us but ambition.  Our ambition made us hit the ground running and we will keep on running. We have provided answers and we have given proof that we can deliver.”

Opening doors and decision making

The PL, said Dr Muscat is inclusive and has drawn on talents from different sectors of society. “We have people from all walks of life within our ranks. Politicians do not have to be doctors or lawyers.

Dr Muscat said that one of the most precious resources in the world is time. “I come from the private sector and we have incorporated that mentality into the way government works,” he said.

The PM said that government needed to be on the ball. “The timing of decision making can be as important as the decision itself. Many in Europe are too sluggish and cumbersome to take decisions quickly and that is our advantage,” he said.

Creativity

Dr Muscat said that his government is not afraid of navigating uncharted waters. “Just because some in the past refused to embrace change, it does not mean that we will not bring about change and do new things,” said Dr Muscat.

The Prime Minister said that Malta had always defied the odds and that whenever Maltese people went abroad to work or study, they always achieved exceptional results.  A lot of that, he said, is down to the government’s investment in education. “Without education, other policies cannot be implemented,” he said.

Investment

Dr Muscat said that the government was always open to the private sector. “The private sector should fill its role in the economy, but where it cannot, the government must create the environment where it can.”

He referred to the Enemalta energy deal as an example.  “We were told that the private sector should not be involved in this sector, but the doubters have been proven wrong.” “We need to harness the private sector. Globalistation, is a more important factor than ever and those who do not accept this cannot read the signs of the times,” said Dr Muscat

“More people know about Malta, we are a destination for investment. We are talked about. We must open  doors in other strategic areas. This is the way forward, we need to save these sectors and create new realities through the private sector,” concluded the Prime Minister.

Vulnerable sectors

Dr Muscat said he wanted his government to be remembered as one that made employment for disabled people to be a reality and not just a dream. “We will make this happen. We will also be announcing a number of initiatives of the elderly and pensioners and make sure that they enjoy more wealth and comfort in their late years,” concluded the PM.