The upper echelons of the Labour Party do not believe the signals that are being sent, notably by Prime Minister Gonzi that he will hold the election next spring, after the introduction of the euro.

Labour insiders who have spoken to this newspaper said they still believe the election will be held in October or November and they are preparing everything in case the election is called at short notice.

They also suspect the strategy of the Nationalist Party top echelons is to lull the country and then spring an election hoping to find Labour unprepared.

However, this could also be seen as a measure of the anxiety and desire with which Labour awaits the election, convinced as it is, that it stands to win it.

PN sources however are still convinced Dr Gonzi will wait before calling an election and quote party insiders as saying the buzzword right now is that all the current work, from the hospital to the roads and other government projects, must be completed before the party goes to the country.

On one thing both sides are in agreement, or say so: they all say that the various party and other polls show the two sides neck and neck.