The Labour Party is still reeling from its decisive defeat in the March 8 referendum on EU membership and the general election which followed, hot on its heels, on April 12, and is still grappling with its new identity. It is not illogical to argue that the party's failure, or rather that of its leader, Alfred Sant, to recognise its defeat in the referendum led directly to its defeat at the polls five weeks later.

Before March 8, the MLP had argued that the referendum was a sham and the real test of whether the people wanted Malta to join the European Union at its next enlargement in 2004 was a general election. Dr Sant, of course, was hoping that the EU issue would be sufficiently fudged by the many real and perceived failings of the Nationalist government as to allow the Labour Party to sail comfortably into power.

But the MLP miscalculated spectacularly, for EU membership - following Dr Sant's obstinate and completely illogical refusal to accept the people's verdict on March 8 - completely dominated the electoral campaign, handing Dr Fenech Adami and his Nationalist government a victory as great as that of five years ago.

Some heads did roll, but not Dr Sant's. As things turned out, the two deputy leaders, Dr George Vella and Dr Joe Brincat, faced a number of challengers for their posts. While Dr Vella did not contest the deputy leadership again, and was duly succeeded by Notary Charles Mangion, Dr Brincat (who had made it to Parliament in the meantime) was defeated by Dr Michael Falzon.

The party leadership contest had not been so straightforward. In the immediate aftermath of the election defeat, Dr Sant said he did not intend to seek re-election as party leader, but by May Day, barely a fortnight later, he had changed his mind. The one candidate who could have posed a serious challenge to Dr Sant - Dr George Abela - did not appear sufficiently interested and, of course, he did not even have a seat in Parliament. In the event, Dr Sant brushed off the challenge posed by Dr John Attard Montalto and Dr Anglu Farrugia, both of whom had seriously criticised his leadership.

Which is why many thought it strange that the party's Vigilance Board should now pounce on Alfred Mifsud, an unsuccessful challenger for the deputy leadership for party affairs and one who was widely known to be eying the leadership, and ask him to stop "harming the party" through his writings "at once". Mr Mifsud said he would not stand threats of any sort, and decided to quit the party - and presumably continue writing, and speaking, his mind.

Mr Mifsud thus joins an ever-lengthening list of MLP activists who have been declared anathema for crossing swords with the present leadership, which paradoxically is winning plaudits from middle-of-the-road voters for accepting - in keeping with its pre-election promise - the "new reality" brought about by the people's sovereign decision, doubly confirmed, for Malta to join the European Union.

Dr Sant's and the new leadership's acceptance of the people's verdict and the decision to make the most of EU membership while safeguarding the Maltese people's interests against possible disadvantages removes a major obstacle for many voters who may have voted Labour in the last general election were it not for the party's unbridled opposition to EU membership. Indeed, among the 19,500-vote majority for Yes to EU membership were thousands of Labour supporters, as subsequently acknowledged by the MLP.

Acceptance of the "new reality" and a more pragmatic approach to the EU has been confirmed by the MLP's acceptance into the Party of European Socialists at the European Parliament. Elections for the Euro Parliament will be held in June, and MLP secretary-general Jimmy Magro has already announced he would be one of the candidates, giving up the party post he has held for 12 years, possibly also in belated acknowledgement of his share of responsibility for the general election defeat.

It is on the EU front, however, that the Labour leadership is facing quite a serious challenge: former MLP leader Karmenu Mifsud Bonnici, who has already gone down in Maltese history as the first politician to become prime minister without being returned to Parliament by the electorate, insists that the party should not change its stance on EU membership and should strive to get Malta out of the Union as soon as possible. Even though, as Dr George Vella pointed it, that would cause untold damage to the island's economy and credibility, KMB's reactionary stand is winning sympathy from many MLP delegates. Things should come to a head at the party's general conference in November, but Labour's travails would be far from over.