The warning signs are there and they stare us right in the face. Their consequences are potentially devastating. Malta’s open economy is vulnerable to contagion from the eurozone debt crisis. We simply cannot act oblivious to what is happening beyond our shores. Austerity measures, sluggish economic growth, political uncertainty, spiralling debts and mounting deficits coupled with rocketing unemployment in Europe have a negative effect on our economy. We feel the pinch, and how.

Emulating ostriches by burying our heads in the sand, while getting lost in political bickering, is a sure recipe for disaster.

Moody’s made a sober reality check on Malta’s economy and it would be a pity were it to be hijacked by childish political games. Moody’s downgraded Malta’s bond rating by one notch – not because the government has failed to address the economic crisis but because of sluggish international economic growth, which limits the Maltese economy’s prospects of growth. Of course, Moody’s insisted, and rightly so, that public finances need to be strengthened, while less bureaucracy would do if we really and truly want Malta to become more competitive.

These are certainly not the best of times. A cursory look at what is happening in the world around us gives us little, if any, hope. Major European economies are experiencing some very serious choppy waters. The aftermath of the worst economic crisis and financial meltdown in the past eight decades is anything but rosy. Countries such as Greece, Spain, Italy, Ireland and Portugal had no option but to implement harsh austerity measures to avoid financial and economic collapse.

There is no denying that major economies are in a mess.

Tiny Malta – geographically surrounded by economic upheaval, financial markets in disarray and political unrest in Northern Africa, particularly in Libya, Tunisia and Egypt – is doing its very best to weather fierce storms, overcome difficulties and march ahead successfully. Ours is an open economy totally exposed to what is happening in other major European economies.

Certainly, we should be proud of our country. The latest Eurostat figures confirm that, in the second quarter of this year, Malta had the fastest growing economy in the eurozone. We also have the fifth lowest unemployment rate in Europe. Make no mistake, such positive results are not sheer luck, far from it. They are the result of sound economic policies and a hard-working, flexible and resilient workforce. This is precisely why we should have confidence in our country and why we should believe in ourselves. Yes, we can, and should, brag that we Maltese are a capable lot – smart, diligent, hard-working and capable of overcoming the most difficult of challenges.

However, and notwithstanding the positive results, we simply cannot afford to sit comfortably on our laurels.

There are huge challenges ahead. Instead of wasting time in useless doom and gloom we should employ our time better by seeking concrete ways and means how to become more competitive, generate more and better jobs, while safeguarding jobs under threat, reducing bureaucracy, making Malta more attractive to potential investors, adopting further sensible economic strategies and, of course, increasing our efforts to cut public debt.

Times are challenging, while sluggish international economic growth and political unrest complicate matters. The least we can afford in such trying times is to waste our time and energy in useless political squabbles. The government is in duty bound to continue implementing sound economic policies while investing in our capable workforce.

Step up growth; that should remain the country’s top most priority.

The opposition needs to stop playing short-lived games and come up with concrete economic plans today and not on the eve of an election. The people at Mile End issue tonnes of press statements rich in rhetoric but shockingly poor in substance. It is time for Labour to pull up its socks and get serious. Perhaps somebody should tell Joseph Muscat to step on it, get his act together and tell us what his policies are to generate more and better jobs, enhance Malta’s competitiveness and strengthen public finances.

The Maltese would do well to be proud of their country and have confidence in themselves because we are a successful and smart nation. It is now entirely up to us steer Malta through choppy economic and financial waters and march ahead, successfully.

Dr Psaila is the Nationalist Party’s director of information