The year that has just ended was undoubtedly a significant one that changed the domestic political landscape for good. After two decades of controversy, Malta has finally joined the European Union, appointed its first European Commissioner, elected five Members of the European Parliament and signed the European Constitution treaty.

Moreover, last year the Labour Party abandoned its crusade against EU membership and is now looking at the post-EU accession scenario in a much more constructive way, which is indeed a remarkable step towards further political stability in the country.

On a national level, the country witnessed extensive changes in the government, particularly the election of a new Prime Minister and the appointment of a new cabinet.

Contrary to what some had predicted, Lawrence Gonzi is managing to give a new impetus to the Nationalist administration and is tackling the most salient issues facing the country at the moment, even if it means taking unpopular decisions.

2005 is set to be a challenging year with a very difficult agenda, including the national debate on the extensive proposals for reform of the pensions system, the implementation of controversial budget measures aimed at strengthening the competitiveness of the country as well as putting public entities back on solid financial foundations.

There are early indications, which I am aware might be premature, that the financial and economic outlook of the country could be improving. The first indication results from the last budget in which the government announced controversial measures aimed at strengthening the competitiveness of the country and its financial situation.

Another indication lies in the fact that government entities, including Air Malta, Gozo Channel and PBS, are showing signs of recovery as a result of the extensive restructuring carried out by the government over the past year or so. The fact that the European Commission has categorically stated that Malta was on the right track in its efforts to control its financial deficit is also significant.

At this delicate stage, it is important that all the social partners, including the unions, recognise that industrial unrest or instability in the early days of 2005 will undoubtedly harm the national drive aimed at correcting the government's financial situation, at enhancing the competitiveness of the country and at improving the economic outlook of the country.

Personally, I cannot understand why the fuss about the measure announced by Government whereby holidays falling on the weekend will not be added to employees' vacation leave. Obviously, it will affect people somehow, but on the other hand it is not such a drastic action. I would have understood the unions' positions had the government announced a substantial reduction in vacation leave per se.

Evidently, the government has to be careful not to be carried away by its drive to improve the country's competitiveness, financial and economic situation and should keep in mind that draconian measures will not work in this day and age. Also measures that will have a serious negative impact on the purchasing power of the people will backfire and will leave a very undesirable effect on our economy.

Asia disaster and L-Istrina

The world could not have ended 2004 on a more negative note as the extent of the South Asia quake disaster is still unfolding. The massive sea surge has been described by relief experts as one of the worst natural disasters in recent history. With a magnitude of 9.0, the undersea quake off the coast of Sumatra is the worst for 40 years and the fourth strongest since 1900.

It was indeed ironic that as news of this massive disaster was unfolding, our tiny country was working hard to end 2004 on a positive note by participating in L-Istrina to collect money for institutions which help the Maltese who are most in need. The organisers of L-Istrina did their utmost to collect as much as possible and the sum collected is indeed remarkable, especially considering the size of the country. State television and the organisers of L-Istrina did a very good job indeed and their efforts are commendable.

Having said that, last Sunday's 8 p.m. news on state television was indeed very perturbing. I cannot understand why the news manager decided that the lead story in the main news bulletin of the day (considered to be an institution in this country) should be L-Istrina and not the unprecedented disaster in South Asia. Can someone from state television explain?

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