With an early election looming on the horizon, Opposition leader Joseph Muscat says his party is ready to govern.

"I have no say over the election date. I will only say we're ready for an election. More importantly, we're ready to govern," he tells The Sunday Times in an interview today.

Whichever way Nationalist rebel MP Franco Debono votes in a motion of no confidence on Thursday, the government remains unstable and unsustainable, Dr Muscat says.

The PL leader rejects claims it will not be a "safe" government if given a mandate and guarantees continuity in essential sectors like the taxation system or the EU.

"But we need a change in direction. We need to stimulate the economy. We need better leadership. The PL is safe for workers, business and the country."

Asked what he would have done if he had the likes of Dr Debono in his team, Dr Muscat said he would never allow the situation to relegate itself to such a state.

Pointing out that he too has had to deal with internal dissent on issues like divorce, Dr Muscat says leaders like Dom Mintoff and Eddie Fenech Adami managed one-seat majorities in parliament without creating instability to the country.

He says the PL electoral programme was always being updated to reflect economic realities, as well as taking into consideration the EU's fiscal pact.

Dr Muscat reiterates his principal pledge to reduce the cost of water and electricity bills but again refuses to give details. He insists such a reduction is possible through cost cutting and not subsidies.

While ruling out the possibility of a coalition government, Dr Muscat calls on critics to look at his track record in the European Parliament to prove his worth, though he pre-empts his young age to be a major tool for the PN's "scare campaign".

Watch excerpts of the interview with Herman Grech by clicking the link above or read the entire interview in The Sunday Times.