The current world crisis in the financial markets and the ensuing economic turmoil is currently occupying centre stage, be it in the media, in national parliaments around the globe or around our very own kitchen tables. It is at moments like these that we realise more vividly the fragility of our world order, frequently based on long-held beliefs and assumptions and the possible consequences when the latter break down.

Undoubtedly these are historic times, as governments and their agencies scramble to repair and revive shattered confidence in some of our most trusted institutions, be they investment, retail or mortgage banks. Everyone realises that the tremors of the last few weeks have destroyed not only trust but also wealth creation. Only time will tell the short and medium-term effects that this will have on many economies around the world.

So far, the effects of all this have not manifested themselves strongly on our small and very open economy. Our banks have shown their mettle by behaving conservatively and, unlike many cowboys abroad, have declined from experimenting with our savings and investments.

This by no means precludes the fact that investors in Malta may have been hit hard during this financial crisis and it may be difficult to quantify the final damage sustained.

At a national level, government is already preparing itself for any eventual fall out that may affect the real economy. It will mostly be a game of wait and see, reacting to events as they may unfold. It is still unclear how all this will affect

different sectors and industries.

On a more basic and personal level, recent events should demonstrate clearly our need to behave responsibly in our spending

patterns.

The live-for-today culture is steadily creeping into our lifestyles – sometimes making us rely too much on easy credit and hence satisfying our wants and needs immediately. Ironically, some of these needs turn out to be superfluous and unnecessary. What is worrying is that all this may sometimes lead to overspending and a growing disregard for saving for a rainy day.

In recent years, Malta’s economy has grown at a steady and respectable pace.

NSO statistics show an ever-expanding workforce and a declining unemployment rate. Major projects such as SmartCity, Lufthansa Technik and expanding financial and pharmaceutical industries will continue to contribute to our nation’s wellbeing.

Our entry into the European Union has played a decisive role in all of this, as has the introduction of the euro (something which happened only nine months ago!). I believe we have yet to exploit the full potential of our membership and we should strive to become more synchronised and hence more efficient in taking up opportunities. More collaboration between government departments and closer ties with the private sector, along with increased accessibility to information, should make this an increasingly successful project.

Time and time again, the Maltese have proved resilient and creative in the face of financial ups and downs.

This time should not prove any different. A concerted effort on the part of everyone involved should help propel us out of this turbulence.

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