Fuel and cigarette price hikes were reversed, workers were guaranteed their cost-of-living-allowance and the President yesterday agreed to dissolve Parliament on January 7, all just hours after the Government was toppled.

The collapse of the Gonzi Administration on Monday night following a crucial Budget vote was the main topic of discussion yesterday, as news analysis focused almost entirely on the Prime Minister’s decision to call a March 9 election.

Lawrence Gonzi stuck to a busy schedule, addressing the press four times and going before the PN’s executive.

In what could be interpreted as his first rally, Dr Gonzi walked from the President’s Palace to Auberge de Castille, where several supporters braved an army of photographers to shake hands and offer encouragement.

His day began with a Cabinet meeting where Monday night’s vote on the Budget – defeated with the help of backbencher Franco Debono – was officially registered. Dr Gonzi then held a 45-minute meeting with President George Abela and advised him to dissolve Parliament on January 7, as agreed with the Opposition.

In an unusual occurrence, the President then held separate meetings with Speaker Michael Frendo, Opposition leader Joseph Muscat and the Chief Electoral Commissioner.

In the evening, Dr Abela issued a statement conveying his decision that a dissolution “would be in the interests of Malta” according to the Constitution and that he had agreed to dissolve Parliament on January 7.

Meanwhile, the PN and PL held executive meetings to discuss the way forward as the election looms.

Earlier in the day, Finance Minister Tonio Fenech confirmed that despite the Budget’s rejection, private and public sector workers would receive their cost-of-living-allowance thanks to provisions in the Constitution.

Other measures, such as lower income tax and higher children’s allowance, are suspended.