The latest downgrade by Moody’s was further proof of the need for a stable and decisive government, Opposition Leader Joseph Muscat said yesterday.

Speaking during the presentation of Labour candidates for the forthcoming council election in Vittoriosa, Dr Muscat spoke of an “ostrich-like government” that kept burying its head in the sand.

While the eurozone crisis could not be pinned on the government, Dr Muscat said he was especially worried by Moody’s negative outlook for Malta and its criticism of the country’s economic management.

The agency’s worry about Malta’s weak debt metrics simply proved that the Labour Party was right to voice concern about increasing the national debt, he said.

In its downgrade report, Moody’s also questioned the government’s economic growth figures, something Dr Muscat said the PL had been doing since the 2.2 per cent growth forecast was announced in last November’s Budget.

“After the European Commission, the International Monetary Fund and Standards & Poor’s, it is now Moody’s turn to tell the government that its growth figures are overly optimistic,” Dr Muscat said.

He referred to the announced €40 million cut in public sector expenditure, saying that the government’s latest characterisation of the cuts as “precautionary” was another pre-electoral tactic.

For Dr Muscat, “it is unacceptable that a government is now playing with the economy and job creation to score political points”.

Alternattiva Demokratika said that, although the decision was related to the global economic situation, the political instability in Malta was not helping things and the only way out was an election.