Opposition leader Alfred Sant underlined terrorism, Mediterranean cooperation and addressing Malta’s economic situation as being the main challenges in 2005 in a short speech to the Diplomatic Corps yesterday.

Dr Sant said that the MLP was committed, as the main opposition party, to conduct objective and critical analyses of economic and social developments. “We will put forward proposals for alternative and better ways of running the country. Unfortunately, the current economic situation needs much improvement,” he said.

Dr Sant said the working and middle classes were bearing the brunt of rises in prices, taxes and unemployment, factors he says that are undermining social cohesion.

“Moreover, government finances require consolidation and the way forward here should be the introduction of a serious programme to curtail public spending, eliminate waste and bring in more accountability in public affairs,” he said.

Dr Sant said that in the coming months, starting with the MLP General Conference, which ends tomorrow, the MLP was giving great attention to the crisis of the Maltese economy. “By the middle of the year, we will have formulated a feasible economic recovery programme, based on realities, not wishful thinking,” said Dr Sant.

The opposition leader said proposals for economic recovery must take into account Malta’s status as a member state of the European Union. He said: “We also respect the commitment to work as an alternative government, determined to mitigate the adverse effects of membership and to maximise the benefits, ensuring that the latter get fairly distributed among our people.”

Dr Sant said the party was very satisfied in having won the majority of votes in last June’s European Parliament elections. “We secured three out of the available five seats in the European Parliament. Since then, our MEPs have been doing a very good job of learning the ropes and of promoting the interests of our working people,” he said.

He added that the MLP would be engaging in intense discussion to reach a position on the European Constitution. The Labour party is in fact commissioning three analytical reports to serve as a possible basis for a democratic discussion.

“Though internal matters will be at the core of Labour’s agenda for some time to come, we will not minimise our external interests and commitments.

“Recent events, most especially the disaster caused by the tsunami in Asia, again confirmed the importance of promoting and strengthening the structures for cooperation and solidarity between the peoples and governments of the globe,” he said.

Dr Sant also praised the Maltese people’s generosity in the donations they made to the people affected by the tsunamis.

Dr Sant said the MLP will support initiatives that follow from the Lisbon strategy for social progress in Europe. “In line with the policies of the Socialist International, we will back proposals that enhance the prospects of effective development cooperation and free market policies that respect social welfare obligations,” he said.

Dr Sant said the Labour Party remained committed to the principles of Mediterranean cooperation and to regulate in a clear and humane manner, the flows of illegal migration.

“We welcome the long overdue rapprochement that happened during the course of the last year between Libya, the European Union and the US. To the best of our ability, we will contribute to make these growing links become stronger,” he said.

In the same spirit, Labour intends to deepen relations with its political and social counterparts in the Arab countries, in the USA, in China, in Russia and in Commonwealth associates, notably the United Kingdom, Australia and Canada, he said.

“The threat of global terrorism remains with us and must be countered, but that however, must be done in full respect of the rights of states to independence, and freedom from external interference in their own affairs,” said Dr Sant.

However, there should be a concerted and genuine effort to act on the root causes of terrorism, he said.

Dr Sant’s speech closed in support of the Palestinian cause for a state of their own, in full recognition of the right of Israel to live within secure and peaceful borders.