After last week’s opening session of parliament, which was mostly taken up by numerous condolences passed on in relation to the deaths of Guido de Marco and others, the House stretched, yawned and finally got into gear last night.

The resumption of parliament after summer recess normally signals the end of the holidays and usually kicks off all manner of government activity. This year, though, was a strange one. While there was a slowdown in the summer, events did not grind to the usual halt which we normally experience. This was, in part, down to the financial crisis. We are not out of it yet, by any stretch of the imagination. And this is evidenced by the dire, dire straits in which Ireland now finds itself – bracing for a 32 per cent of GDP deficit which will result from its huge bailout of the Anglo Irish Bank.

Europe has not stopped this year, fighting the urge to slow right down towards the height of summer in a bid to fend off contraction of economies that would have plunged the Continent back into recession.

And this is exactly why Malta and the rest of Europe cannot afford to take things easy. One of the major issues which we have yet to address is productivity levels along with competitiveness. European governments are increasingly turning to austerity to deal with the problems, in a big break from the UK Labour government’s ethos under Blair and Brown – spend, spend, spend.

It is now more a case of save, save, save. But even here we see a disparity. Many northern European nations are embracing austerity measures. Britain is coping under Cameron and Osborne. Latvia has just given a stronger mandate to its centre-right government to administer the country for another term under a package of austerity measures. Ireland is getting ready to fight back too.

Meanwhile, Greece and France have seen thousands gather on the streets to protest. Portugal and Spain are dilly-dallying while exploding deficits are pushing their massive public debt to ever higher levels.

In the main, European Socialist governments are struggling. The message just does not tally with the reality. The welfare state is there to stay, whether under the left or the right. But socialism just does not seem to ring right at the moment. Europe cannot speak about tax cuts, increasing spending and increased wages at a time when that money simply does not exist.

Socialism worked before the bubble burst because credit was so easy. Funds could be borrowed and rechanneled into various schemes of bonds, trusts, funds and hedge agreements, and therefore the ever growing ‘hofra’, as it used to be known here, could continue to grow and grow without it ever being acted on. In that way, governments could ‘throw money’ around in the form of subsidies, benefits, low tax rates, children’s allowances and so on.

We have already said that socialism and the centre-left needs to re-invent itself in a previous leading article. This much is true. But what we do need is for every government in Europe to implement some form of austerity measures. It is like a family… you cannot spend what you do not have, you must save the pennies to save the pounds and you must get your house in order before thinking of making a purchase or taking a holiday. It sounds simple; and that is because it is. We must tighten the belt and get our collective economies in order before thinking of long-term growth.