A week after the Labour Party's landslide victory in the European Parliament elections, leader Joseph Muscat tells Herman Grech it is merely the point of departure for his 'progressive' movement.

Do you think the Nationalists lost a vote of confidence in last week's vote or do you feel you are rallying support?

I think it's a combination of both. There was an element of a protest vote against the government but I think such a result would have been unachievable if those you're voting for don't inspire confidence.

I think we moved a step closer to ensuring that Labour can act as base of a new movement. This is not political rhetoric. I don't think a political party on its own could have obtained such a result. It's the result of people who traditionally vote Labour and of those who voted for us for the first time.

You're also aware that Labour lost around 6,000 votes compared with last year's general election. Aren't you worried that your tally is down?

It wasn't a general election. I compare the figures to the election held five years ago and we added votes, while the Nationalists suffered a drastic cut. It confirms what we've said from the outset - there is still a big chunk of Labourites who refused to go out to vote.

Why would they abstain?

There are a number of reasons. Some might not believe in the European project, others might have certain grievances; others want to see bigger changes in the Labour Party. I've take note of the messages the same way I've heeded the votes given to the Nationalists and the small parties.

What are you going to do in the coming four years to convince those who still don't believe in the European project?

I have to show that our MEPs' work can be more relevant to these people's lives. We can't disregard those who still doubt the European project. These are the realities and this is why I've said this is not the point of arrival for us, but the point of departure.

Commentators like former Labour general secretary Dominic Fenech urged you to forget about the election, move on and avoid repeating the same mistakes as Alfred Sant. Are you taking note?

I've been working incessantly since last Monday. I'm taking note of the messages being sent. Dominic Fenech is right: there's so much work to be done. I want to see this country emerge from the problems it's facing and we have to do this by making a quantum leap in the way we do politics. It is worrying to see our government acting as though nothing happened despite the fact that our GDP is down drastically in the first quarter of this year. We seem to be waiting for another budget before taking action.

What would you do, knowing there is a global recession?

I wouldn't sit down and do nothing.

Are you saying this is what the Prime Minister's doing?

Yes. Every time we tell the Prime Minister to invest in the economy he tells us he's done it in the budget. The planned stimulus to the economy projected in the last budget failed to materialise. And this didn't just happen because of the international situation but also because of national decisions.

There is a global recession and the price of oil is rising again. What would you have done differently?

I would have made sure that the public would have benefitted from a reduction in the price of oil. Are we going to increase the price of electricity further now that the price of oil is increasing? I would make sure there aren't any more government-induced costs on businesses. I would also make sure that the deficit is used to beef up investment. Those who say that a reduction in taxes leads to a reduction in revenue are shortsighted. We need to stimulate the economy by reducing taxes. The Nationalists managed to do it when George Bonello Dupuis was Finance Minister.

PL general secretary Jason Micallef is on record giving a guarantee that a Labour government will reduce the electricity rates...

...I don't think he meant to say that.

Was he speaking on behalf of the Labour Party?

He wanted to make the argument that the reduction in the electricity and water rates last April wasn't enough...

...he didn't say that.

But I think that's what he meant to say.

So it wasn't with the approval of...

...I'm not going to make a commitment for the next election before I have the matters in hand.

If the price of oil rises to $200 a barrel by 2013 what would you do?

What I would definitely not do is increase the price of electricity when oil prices are going down.

But you can't give a guarantee that you'll reduce the electricity prices if the price of oil is going to go up.

The guarantee I will give is that consumers will not pay for the inefficiencies of the government and Enemalta, and should not foot the bill of agreements which don't make sense for Malta.

Will you give a guarantee that healthcare will remain free if you become Prime Minister?

I've given it.

Even if health sector expenses keep rising?

This model worked when it was seriously operated by a Labour government, which introduced this concept, as well as different Nationalist legislatures. We need to make sure there is no wastage and reduce waiting lists. It's easy to say the system is costing us lots of money so let's cut down.

We need to eliminate corruption and the senseless waste in departments.

What kind of corruption?

Like the VAT department fraud. It's shocking how this corruption, which The Sunday Times has reported, runs into millions. The newspaper has given us more information than the Prime Minister did in Parliament. It's even more shocking how nobody assumes responsibility. The corruption had been going on for years and it went unnoticed, when we are meant to have audit trails.

But it was the Finance Minister himself who alerted the police right away the minute he became aware of what was going on...

How come he didn't realise? Why should the head of the department be paid to ignore the system? He (the minister) got to know about it because an outsider informed him. Why don't we have systems in such sensitive departments of revenue collection which flag this abuse? Your newspaper even reported that this fraud was common knowledge.

There were claims that you failed to get the individuals you wanted in key positions of the Labour Party when you were elected a year ago. Did you manage to do so this time round with the MEP elections?

They are the MEPs the people wanted, not necessarily the ones Joseph Muscat wanted. I'm just a voter like everyone else.

You must have an opinion.

The Leader of the Opposition or the Prime Minister cannot instruct people how to vote. I presented 12 candidates who I had faith in. I have my own analysis of the choices made.

Are you disappointed that candidates like Marlene Mizzi didn't make it, despite the fact that she was shown off as the new face of Labour?

What we politicians have to look at is the fact that all female candidates polled just 20 per cent of the vote. Marlene was the best performer and I'm convinced that all the other PL female candidates would have done us proud. We really need to find ways and means of incentivising the role of women in politics.

Before the election, at least one analysis of the former MEPs' performance carried out showed that John Attard Montalto performed badly. Do you have full confidence in Dr Attard Montalto?

I believe in the judgment of people. I think all our previous MEPs performed well. I believe everyone learns from their mistakes and from experience - and the next five years will be better.

You haven't answered the question.

If I didn't have faith in John Attard Montalto I wouldn't have proposed him as one of the candidates.

Do you regret anything about the PL campaign? Some people said that turning up late for a televised debate with the Prime Minister smacks of arrogance.

I'm sorry if I left him waiting. I'm not an arrogant person.

Was there any reason for turning up late?

There was a misunderstanding and I can't understand why there's all this fuss.

Some would interpret it as a lack of respect for the Prime Minister.

I respect the post of prime minister and I respect Lawrence Gonzi. If I wanted to play games, I'd do the same things others do to me and my colleagues.

In last weekend's election, we saw a shift from Alternattiva Demokratika to PL. Do you dismiss the prospects of a coalition?

It's not an issue of a coalition. It's AD which has to decide about its future. I think our credentials in the environmental field in recent months have improved.

The hardcore AD supporters could be enough to sway an election. Did you have any meetings with AD officials?

I met them in the past few months, not in the past few weeks - but we didn't talk about a merger.

So are you excluding it?

I never exclude anything. But it's not on our agenda. If there are AD activists who feel they can form part of the PL, we will open our doors. We have our own agenda, which includes sustainable hunting.

You are describing the PL as a progressive movement of change; don't you fear that by embracing everybody, you are even including people or groups who should be shunned?

We've got a set of values. We believe in equality and social justice and a more liberal society.

Last weekend we had the first instance of political violence in years...

... which we condemned straight away.

Don't you fear that this notorious individual feels more comfortable in this all-inclusive party?

The party has cleaned itself of the violent elements. What I hate is the way things are blown out of proportion. On the Wednesday before the election, there was an incident outside the PL headquarters where a PN supporter brandished a knife. We filed a police report and the individual admitted (the offence). This was a very serious case of political instigation.

That night, I was asked whether we should make this incident public, and I felt it was not on. We'd have done it for political mileage - and I don't think people's votes are influenced by these matters. I wouldn't have made it public (after the election) if the Żejtun incident wasn't blown so out of proportion.

The PN has accused you of capitalising on the illegal immigration issue. Don't you think you have indirectly fuelled the far-right sentiment with your statements?

We're responsibly reflecting what people are saying. I said that the burden sharing issue would not be resolved on a voluntary basis - and before the election, Lawrence Gonzi ended up saying the same thing. We're dutybound to reflect people's sentiments and not remain silent for the sake of political correctness. The fact that immigrants are being exploited every morning at Marsa while undermining taxpayers is unacceptable.

But while you're talking of exploitation, you're often talking that they're taking our jobs and that they pose a problem. Aren't you worried that we've reached a situation where an immigrant has died after allegedly being beaten by a bouncer in Paceville?

There are people who even implied that I killed him. I condemn all forms of violence. But we can't solve the problems by remaining quiet. Wherever the mainstream parties remained silent on the immigration, they paved the way to extremist parties, which wouldn't do our country any good. The PL has to express people's feelings. I believe our 20-point plan was responsible enough. But we also need to look at the army and the police and we need to be tough on politicians.

You said that many of those who voted far-right in the European Parliament elections were soldiers and those on the frontline of the immigration issue. Where is the proof?

It's not limited to just those categories but I do speak to people and I believe that people on the frontline of immigration...

...do you 'believe' or do you know?

I know - because they also speak to me.

So you're saying that a group of soldiers have voted for Norman Lowell.

Not just soldiers - but also those in other disciplinary corps.

Doesn't it worry you?

That's why you have to listen to them. You can't ostracise them or demonise them.

Ultimately, Norman Lowell's views are extreme. Many would consider them racist.

And I think that the people who voted for him do not agree with his principles.

Do you think so?

I think they're sending us a signal that we're ignoring their concerns.

The European Socialists are known for their principles. Do you think you should be associating yourself in any way with those who have extremist views on immigration?

No, but if you look at the attitude of the British Labour government as well as other countries like The Netherlands, they were making rather radical proposals on integration and immigration. Just because you're leftist doesn't mean you have to ignore a concern that impacts upon the social base. In those countries where they've ignored these concerns they've ended up with situations like Marseille where a Socialist stronghold became a stronghold for (Far Right leader Jean Marie) Le Pen. The same thing happened in northern Italy where the vote is going to the Lega Nord.

But what can you do?

You can show them that their concerns are being reflected in a moderate manner.

So wouldn't it be better for a party leader to educate and explain to people that the problem should be addressed at source, rather than the immigrants themselves?

I think both the Prime Minister and I agree that the long-term solution lies in solving the problem in Africa, caused by colonial countries which exploited the continent for years.

And do you still think that the solution also lies in threatening the EU with the veto?

There's no single solution - but you can't go sit there and say you will never use the veto, irrespective of what happens. The veto is part of the solution. You can't be soft...

...Even if you risk being ostracised by everyone.

Nowadays, if we're not ostracised by everyone, we have no solution for anything.

So you're prepared to speak to people with extremist views?

Not from a political point of view, but from the voters' perspective.

Doesn't the politician have a duty to educate?

Of course - but he also has a duty to listen to everybody.

Don't you feel that a party leader simply cannot please everybody?

Of course not. That's why you have to make choices.

One year from your election as leader - what changes have you made to the party? Has the earthquake you promised taken place?

Some people said Gonzi felt the earthquake in last week's election. I'm satisfied with the beginning of the changes. We need more. We are eradicating the siege mentality - where we think everyone is against us. We're accepting criticism better.

What other changes would you like to see?

We need to change the way we work, interact, communicate.

A year after your election, do you have absolute control of the party?

I think Joseph Muscat is acting as a leader - but I am not the party. This is not Gonzi versus Joseph, but Joseph as a PL leader putting forward this movement.

Watch excerpts of the interview on www.timesofmalta.com.