The MLP added that the structural deficit was worse than that declared in the last budget.

A statement signed by the MLP deputy leader and spokesman on finance and economic affairs, notary Charles Mangion, claims that the deficit is actually Lm175 million when, according to the government, it is Lm78 million. This is nine per cent of the national wealth.

Mr Mangion said that in one year the debt increased by half a million liri a day for a total of Lm1.3 billion.

The “confusion in direction” continued when Dr Gonzi stated that Malta should enter the European Monetary Union as soon as possible, knowing that the criteria for being accepted include that the national debt is cut from 70 per cent to 60 per cent of gross national product while the deficit should be trimmed from nine per cent of GNP to three per cent.

This means that before joining the EMU, the Nationalist government must work hard to increase the country’s economic growth.

Mr Mangion said the Labour Party is still awaiting concrete proposals from the government on pension reforms.

However, the prime minister’s declaration that the pensionable age will rise contradicts what he said as social policy minister when, in all reforms or restructuring programmes – including that of the drydocks – he suggested that a number of skilled workers would retire at a younger age, at times even at 40 or less.

He also said that when, as acting leader of the opposition, he had been informed of the decision to appoint Edward Fenech Adami as President, the decision was already final and there was no room for compromise.