Labour Party leader Alfred Sant did not want the euro to be introduced before the election because this will be a certificate for the government’s wise policy, Prime Minister Lawrence Gonzi said yesterday. At the same time, Dr Sant did not want the euro to be introduced soon because his campaign against it would collapse as happened when the MLP was against European Union membership.

Speaking during a discussion programme on Radio 101, Dr Gonzi said that if and when Malta introduced the euro it would mean that the country would become more competitive. This is because the tourists who visited, the foreign investors and the importers and exporters would have their expenses reduced.

The adoption of the euro would enable Malta to join a group of nations that followed regulations that gave stability to a currency that was among the strongest in the world.

Dr Gonzi said that Dr Sant’s position showed that he was afraid of the current situation.

He added that Dr Sant made a mistake to speak about his party’s policy for Gozo in Ghajnsielem since it was looking up all possible excuses for this village to be cut off from Gozo as an electoral district and instead form part of the Mellieha district.

The government’s work was leading to positive results and was helping investment that created better employment conditions and pushed the standard of living closer to that of the EU, he said.

The government is leading a policy that sought the country’s interests.

Dr Gonzi recalled what took place before the 1996 election when the MLP built its electoral campaign on the removal of VAT. But, six months after being elected, Dr Sant had realised that the removal of VAT was a mistake, and instead introduced a taxation system with rates reaching 26 per cent. Government income disappeared and led to a loss of Lm50m per year.

The Prime Minister referred to the 2.5 per cent economic growth registered in 2005, which was much higher than the one per cent projected earlier. He said that the creation of 4,000 jobs in 2005 was a result

of this growth. Foreign investors came over not because they wanted to do Malta a favour but because they knew they had potential for success because the country had a solid financial base.

He said that during his visit to France last week, several investors who represented big companies had shown an interest in setting up shop in Malta because of its stability.