Prime Minister Lawrence Gonzi this evening warned voters not to repeat the mistake it made in 1996 when it elected Labour on the promise that VAT would be removed.

He compared the failed VAT pledge to Labour's energy plan which he said was being criticised by every expert.

Dr Gonzi said a country's sound finances were the most important thing because without a strong economy, the country would not be able to sustain education, healthcare, jobs and investment.

"If every country was doing well I would say great, we're all doing well. But we are doing well when many other countries are falling behind," he stressed.

Dr Gonzi warned that if Malta asked for a bailout from the EU or the International Monetary Fund, it would no longer 'belong to all of us' as Labour's slogan asserted. Instead, he would be told by others how to handle its finances.

Asked about this week's downgrade of Malta by credit rating agency Standard & Poor's, he said Malta would have avoided it had the Opposition approved the Budget.

He pointed out that when Italy went through a similar experience last year, all the parties in the Italian Parliament voted for the Budget in the national interest since they knew an election was round the corner.

However, Labour did not support the Budget even though it agreed with it so much so that it would adopt it once elected.

"But (Malta's downgrading) is not the end of the world. After the election the Budget will be approved and this difficulty will end and I am certain we will be upgraded once again," he said, urging the people to stay positive about the future.

He said the credit rating agency also expressed concern about Enemalta's debt and Labour's proposals on energy could also have impacted the rating of Malta.

In a lighter moment, Dr Gonzi, who was being interviewed by TV presenter Josef Bonello in Hamrun, admitted that his wife Kate handles their home's finances to make sure they are sound.

"And she teaches me a great deal," he said with a smile to resounding applause.