EU referendum unlikely to be held before March

The government`s priority in the coming months would be to ensure that the economy performs well, Prime Minister Eddie Fenech Adami said.

Another top government priority is to conclude negotiations with the EU on time and by the end of the year.

In an interview, Dr Fenech Adami says:

¤ he is closely monitoring the unemployment situation;

¤ he expects the privatisation of Malta International Airport to be concluded very soon;

¤ the logical step is for the EU referendum to precede the general election;

¤ he believes the referendum outcome would be respected by all sides, including by the Labour Party;

¤ he cannot see the present leadership of the Labour Party doing a U-turn on Europe;

¤ that in all probability there will be another round of local elections before the referendum;

On the economy and unemployment, Dr Fenech Adami said: "I must confess that over the past three months, I was concerned that unemployment could become a problem.

"The indications now are that we have managed to stem the worst of the situation and we need to put across the feeling that all in all the Maltese economy is performing reasonably well and that there is no major cause for worry. The economic performance of the country is extremely important and we shall naturally concentrate on that."

He said that government was doing a lot of work but admitted there was a need to get "our act together" in a more visible manner.

"All ministers are working hard on producing results. The perception could be that things are not getting done in a coordinated manner. The government will be trying to coordinate activities better."

Dr Fenech Adami said there was no doubt that the world was going through upheavals which were being reflected in the economic performance of most countries.

"There is a lot of global uncertainty. Bearing this picture in mind, the performance of the Maltese economy is satisfactory. One has to go for facts rather than perceptions.

"Take, for example, the unemployment figures in past years. If one had to compare figures, one would immediately realise that there has been a very substantial increase of over 5,300 jobs created since December 1998.

"If one looks at the unemployment figures, there has been a lot of intentional confusion on the part of the Opposition over the number of people who are willing to work and the number of registered unemployed.

"Since September 11, Malta has seen the number of unemployed increase, which, to be honest, is also partly because of a slowdown in the Maltese economy which was already evident prior to the terrorist attacks in New York."

Dr Fenech Adami also referred to uncertainty in Malta because of the radical stand being taken by the Labour Party on the issue of EU membership.

"The economy would have performed better and investment would have been substantially better had there been agreement on the issue of EU membership. Undoubtedly, people stop and think before they decide to invest in Malta and they want to know what the future is going to be. We are in a period where people are adopting a wait-and-see attitude which is harming the economy."

He also recognised the fact there was likely to be a slowdown when a general election was approaching, but said the government would be doing its best to ensure that the country was on course and that things were moving along.

"But I admit that there will be an element of uncertainty because of the negative attitude of the Opposition so far as Malta`s future is concerned."

He was very categorical in his view of the referendum result.

"My own assessment is that the referendum will be carried by a comfortable majority and that the people`s decision will in fact be respected by everyone. I expect that once the referendum decision is taken, the outcome will have to be honoured by anyone who wishes to win the following election."

Was he implying that the election would follow the referendum and that they would therefore be held on separate days?

"I am saying that there has to be an election, but I am keeping my options open in the national interest. The logical sequence should be a referendum followed by an election.

"Going by the calendar of events one has to assume that the referendum will precede the general election.

"I have been asked on many occasions whether there is a possibility of holding an election and the referendum together and my position is that, logically, in the present circumstances, I would say no. But there could be circumstances which in the national interest could make me consider such an option."

Could he imagine a scenario where the Labour Party would do a U-turn on the EU membership issue before or after the referendum.

Again, Dr Fenech Adami gives a categorical reply: "Neither before, nor after the referendum. But one has to define what one means by a U-turn. It is not just illogical but impossible for any political party to ignore the result of a referendum on a national issue. Whatever the MLP is saying, after the outcome of the referendum, it would have to adapt itself to the decisions taken by the people of these islands."

The EU`s commissioner for enlargement, Gunther Verheugen, last month expressed concern with Foreign Minister Joe Borg that some member states fear that Malta could opt out of EU membership, after it would have already joined.

Dr Fenech Adami promptly replied: "However, one has to appreciate the situation in Malta. I maintain that once the decision is taken, no political party would be able to ignore the will of the people and that the decision will be irreversible. However, we must also see the view of the EU member states. They, like us, want reliable partners in the EU."

What about the analysis of the latest PN polls - presented to Nationalist MPs last month - which put the parties neck and neck? He repeatedly refused to be drawn into the content of the analysis.

He stressed he had seen no major change with regard to the position of the Nationalist Party: "The Nationalist Party still has the support of the majority."

He felt the government could do better in dealing with the media. "However, one has to take into account that whoever is in government is likely to have a more hostile press than when in opposition. What I would like to see is the media appreciating more what has been done, that enough importance is being given to what this government has managed to achieve over the past three years."

Did he think the electorate sent out a clear message in the last round of local council elections?

"If one analyses the figures, the Labour Party did very well indeed and the Nationalist Party lost some votes. But if one had to analyse where the Labour Party did very well and take this into consideration, I maintain that in today`s circumstances the result was satisfactory.

"Again, it is a fact that the Labour Party has managed to win back those who had decided to abstain three years ago. But there was no shift of votes from the Nationalist Party to the Labour Party.

"All the detailed analysis carried out internally does not show a shift of votes. It shows the Labour Party managed to get votes from those who did not vote three years ago."

Will there be another round of local elections before the referendum is held?

"The date for local elections is fixed and it is very unlikely that the referendum will be held before March, 2003. In all probability there will be a round of local elections. The referendum will probably be held in the first six months of next year."

On the opposition, Dr Fenech Adami said the Labour Party was doing nothing but being disruptive.

"They do not have a programme as such and the only thing they are doing is trying to create uncertainty. The opposition is becoming more confrontational which is a great pity because we had been out of that situation for many years.

"It is here that the leadership of Alfred Sant has changed drastically. One senses bitterness in his policies which I would have never expected from the style of leadership he had promised.

"The real problem, however, is that the Labour Party has no real policies. Take Europe. Dr Sant first came out with the slogan Switzerland of the Mediterranean and now that he has been pushed hard to explain what this meant and couldn`t, he has come up with another buzzword, `partnership`. The reality, something which the EU itself has made very clear, is that there is no third way, you are either in or out."

With regard to the controversy about the appointment of the new Broadcasting Authority board, Dr Fenech Adami said he was flabbergasted by a comment made to him by Dr Sant.

"When I proposed (former chief justice) Dr Joseph Said Pullicino as the new BA chairman, Dr Sant was full of praise. But then he said he could not express his confidence in the authority, not because of the new chairman but because he expected the authority to give in to his pressure so far as the Malta-EU Information Centre was concerned.

"The truth is that MIC gives objective and non-partisan information but Dr Sant does not want that. His position is so illogical..."

Almost four years down the line, and you have resisted a cabinet reshuffle. Do you exclude one altogether?

"I have not considered a cabinet reshuffle and do not have one in mind," he says.

On the issue of privatisation, Dr Fenech Adami admits that this has slowed down in terms of the time schedules that had originally been predicted.

"But it shows that we are doing things seriously and that we are not rushing to make decisions. I review the situation regularly and I am convinced that although the process has taken longer than expected, it is because we want to be doubly sure that we are taking the right decisions. We expect a decision on the privatisation of the Malta International Airport in the coming few weeks."