There are only two ways to react to the Prime Minister’s statement last Thursday, when he announced the retention of Konrad Mizzi in his Cabinet and Keith Schembri as his chief of staff: you either take him at his word or you don’t.

Either way you look at it though, Joseph Muscat has become a problem for the country.

Ever since Dr Mizzi and Mr Schembri were caught in possession of companies in Panama, that opaque jurisdiction chosen by tax evaders and money launderers to conceal ill-begotten gains, there has been a clamour for them to resign or be sacked. Whether or not they have done anything illegal, this was widely seen as the only avenue open to the Prime Minister if he was to preserve some political respectability.

Instead, he has appointed Dr Mizzi as a minister without portfolio, but still in charge of energy projects, and he has done absolutely nothing in regard to Mr Schembri, citing personal confidence in his chief of staff.

So let us suspend disbelief for a moment and take the view that Dr Muscat honestly believes these decisions are in the best interests of justice and the country, as he put it; and that he was totally genuine in his assertion that his demotion of Dr Mizzi is enough of a “rebuke” and a “clear signal” that “more correct behaviour” is expected of politicians.

If the Prime Minister has acted in good faith then we can only conclude he has a poor grasp of the seriousness of the situation and has exhibited terribly poor judgement in response to it. To have a Prime Minister who slips up so badly cannot bode well for the country.

This, at the very least, would mean he is utterly out of touch with public sentiment and certainly not in line with expectations of decisive action. If the Prime Minister has acted in good faith then we can only conclude he has a poor grasp of the seriousness of the situation and has exhibited terribly poor judgement in response to it. To have a Prime Minister who slips up so badly cannot bode well for the country.

Given that Dr Muscat can be credited with more astuteness than this, the alternative and more credible view is that he has attempted to construct a façade, a pretence of action, to be able to say to incredulous reporters: “You see, I take decisions.”

This, in turn, can only mean one of two things: that he does not want to, or he simply cannot, remove his two closest colleagues in government. One possible reason is that they are both indispensable to his plans. The Opposition has proposed another: that he is somehow involved in the Panama scandal and is being held hostage, to which he has threatened to sue for libel.

The Prime Minister has dug himself deep into a hole. If he believes that he has swung public opinion back on his side over the way he has handled Panamagate, or that today, a massive show of May Day force will restore his dimi­nished image, he is wrong.

While it can be proud of its economic achievements, there are other issues that cloud this government’s record as it celebrates May Day: the Café Premier and Gaffarena scandals, its willingness to allow development on ODZ land, its refusal to publish contracts, and now the departure of the fourth police commissioner in three years.

The latest charade over the Panama affair is just not sustainable, even among his own supporters. Dr Muscat is running out of options. One that remains is to acknowledge he has lost the trust of much of the electorate and call an early election.

Malta cannot have a prime minister so many disbelieve or are downright suspicious of. This situation is not tenable and will continue to harm the government and the country.

Who among the Labour crowd today is going to shout out: “But the Prime Minister wears no clothes!”? It probably won’t be Dr Mizzi or Mr Schembri.

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