As we approach the run-in to the next general election, and the political parties prepare to go into full gear in anticipation of a decisive electoral campaign, the Nationalist Party seems to have strayed into a patch of turbulence.

There is dissidence in its top ranks and it is spilling into the media, suggesting weakness and lack of resolution at the leadership level.

This development must be particularly harmful because it is happening at a time when the economy is under stress, and is languishing as a result of mismanagement.

Rising taxation has mopped up spending power. Investment fatigue plagues the economy which is only sustained by accumulating public debt.

This picture is ugly to behold and is causing nightmares to party activists, at leadership level and the lower ranks, each time they hear Prime Minister Lawrence Gonzi claim that the economy is “on track”.

Malta’s prevailing economic predicament has, in fact, become the main issue of controversy, and the cause of disarray in the PN leadership. The conviction that Dr Gonzi is not doing a good job is gathering momentum. He has manifestly failed to cut loose from the free-spending, money-no-problem methods of his predecessor. This basic shortcoming has led to more taxes and rising debt, with no compensating benefits.

The bonfire of electoral dissatisfaction has triggered more dissidence within the party. This quandary is of the PN’s own making.

Spearhead

The spearhead of this dissidence is the former Finance Minister, John Dalli.

John Dalli may have his faults. Indecision is not one of them. He is down to earth and does not mince his words. He has emerged from the smoke-filled committee rooms at his party headquarters, and assessed the situation. His lament is that “a feeling of grave despondency” is contaminating Malta’s economic and political environment. (Sunday Times, 4 September)

He claimed that the factors contributing to all this are:

a) a sharp squeeze on the nation’s cash flow, (taxation)

b) the absence of economic activity ( investment fatigue)

c) the ever-increasing burden of bureaucracy (incompetence and mismanagement)

Mr Dalli does not say how much of this damage originated from the years when he was in control of the Finance Ministry and a leading light in the PN Cabinet. Nevertheless, he clamours for an effective substitute to the prevailing paralysis.

Unspoken thrust

He was even more outspoken and provocative when he participated in the TV programme Newsdesk on Net Television on 12 September.

He had forthright criticism for the way the attempt to draw up a social pact was mishandled, and its objectives deformed.

The unspoken thrust of his criticism was directed at Dr Gonzi. Mr Dalli never mentioned him – but he left no one in any doubt that his personal style, as distinct from that of Dr Gonzi, was to take the bull by the horns and lead from the front, to take unpleasant decisions by way of responsibility and the duty of office.

The perception that the Gonzi government is paying the price for its inertia has gained ground and is widespread, as confirmed by public opinion surveys held in Malta as well as under EU auspices.

It was only a few days ago that a Eurobarometer survey, commissioned by the European Commission, disclosed that the absolute majority of the Maltese electorate (77 per cent) had a negative view on the state of their economy.

The lack of confidence of the electorate in their own government continued to increase by l3 per cent over the relative figure for 2004. Confidence in the government stood at 57 per cent in 2004 and it has now slumped to 40 per cent. These figures speak louder than words and are bound to be of concern to various PN bigwigs at party headquarters, other than John Dalli.

It could not be otherwise. For years, the government’s finances have been running out of control, and the whole administrative, economic and social system has been in need of immediate and intelligent reform. There has been no shortage of experts, studies and reports. But the government has not delivered. Hence the despondency which is as genuine as it is tangible.

This concern has been simmering for long. It has now boiled over, and John Dalli is stoking the fire with characteristic aplomb.

State of play at Pieta

He knows, much more than the average elector, the state of play at Pieta where the faceless PN party “strategists” have already committed other serious mistakes, and have highlighted their ineptitude.

What is Mr Dalli’s own “strategy”? Is he making yet another bid for the leadership? Or is he merely making a noisy, but determined, effort to crash his way back into the PN Cabinet? The PN leadership seems to be hypnotised and has shown no will to get to grips with this situation.

Meanwhile, with the PN at sixes and sevens, the economy heaves under the weight of rising taxation and mounting debt, and wallows in the despondency which has made John Dalli scream.

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