The Nationalist Party has suffered its fourth consecutive electoral defeat. In politics, a loss is a loss, and no amount of spin can change that reality. Governments are formed by those who win elections, not by those who narrow margins. Yet it would be equally wrong to ignore the significance of what has happened in this election.

For the first time in many years, the Nationalist Party has emerged from an electoral contest with genuine reasons for optimism.

The numbers tell an important story. The gap between the two major parties has been slashed from 39,000 votes to 21,000. The PN has increased its vote tally by around 13,000 votes and has secured more seats in Parliament. These are not the statistics of a party in decline. They are the signs of a party that has finally halted a long downward trajectory and started moving in the opposite direction.

After years of internal divisions, leadership changes, electoral disappointments and financial struggles, the PN appears to have found something that had been missing for a very long time: hope.

Much of the credit for this must go to Alex Borg. Having taken over the leadership only nine months ago, he inherited a party that many considered incapable of mounting a serious challenge to Labour. Expectations were modest. Few anticipated that the PN would manage to energise its supporters to the extent that it did during the campaign.

The massive crowds that attended Nationalist activities were perhaps the most visible sign of this transformation. The party had not attracted such enthusiasm since the period leading up to the 2003 European Union referendum and general election. While crowd sizes do not win elections, they do reflect mood, confidence and belief. For the first time in many years, Nationalist supporters once again appeared convinced that their party could become a credible alternative government.

This renewed confidence was also evident in the party's campaign strategy. The PN entered the election prepared, despite the early election call. It presented an ambitious electoral programme and focused heavily on policy proposals aimed at addressing the country's challenges.

Importantly, the party moved away from an opposition strategy centred almost exclusively on allegations of government corruption. Holding governments accountable remains an essential duty of any opposition, and issues of governance and transparency should never be ignored. But the PN recognised that criticism alone would not persuade voters to entrust it with power.

Instead, it sought to present itself as a government-in-waiting, offering solutions rather than simply highlighting problems. Judging by the gains it made, many voters found that approach convincing.

Another encouraging sign is the renewal taking place within the party's ranks. The election of a significant number of new candidates points to a generational shift that the PN has needed for years. Fresh faces bring new ideas, energy and perspectives, all of which are necessary if the party is to continue broadening its appeal.

Of course, significant challenges remain. The road back to government is still long and difficult. Labour remains firmly in power and retains a substantial lead. The PN must also continue addressing its well-documented financial difficulties, which cannot be solved overnight.

But Alex Borg has successfully completed the first stage of his mission. He has restored enthusiasm and competitiveness. His next task is even more demanding. He must now transform this revitalisation into something more meaningful. Now he has five years, not five months, ahead of him.

Most of all, he must keep the party united behind him. The PN has been through turbulent times for two decades and it must avoid a repetition to be able to continue moving forward.

The Nationalist Party has not yet reached its destination. But after years of wandering, it finally appears to have found the right road.