Neutrality remains a wise choice in the sea of turmoil that surrounds Malta but this does not mean being neutral to terrorism, according to Joseph Muscat.

The Prime Minister insisted being neutral meant assisting those of goodwill in their search for peace.

“What is happening around us is a reminder of what a wise decision it was to adopt the politics of neutrality. Even if the words may need to change, the spirit is correct because neutrality does not mean being indifferent to terrorism.”

Dr Muscat was addressing Labour Party delegates at the close of a week-long general conference yesterday when he briefly mentioned the terrorist attack on the Maltese-owned Corinthia Hotel in Tripoli last week.

He said terrorism knew no borders, insisting the Maltese security forces were doing all that was possible within their limitations to ensure families were safe and secure.

Earlier, National Security Minister Carmelo Abela said the security forces had their eyes open.

“The country’s geographical position necessitates that we have to always be careful and with our eyes open, but not alarmist,” Mr Abela said.

It was the third time in as many days that Mr Abela allayed fears after rumours spread on Friday that Malta faced an imminent security threat.

The rumours were fuelled by an internal army decision to upgrade the weapons carried around by soldiers. The country’s alert status has not been increased.

Addressing a different sort of danger, Dr Muscat referred to the political turmoil in Europe instigated by the far-left victory in Greece of the anti-austerity Syriza party. Syriza wants debt forgiveness from its European partners to the tune of half its dues.

Dr Muscat said there were some within the social democrat family who were pushing for a resistance to change.

“Some want to take us back to the unsustainable methods of the past. It is an illusion to let people believe there is a future that does not embrace the free market,” Dr Muscat said, insisting the Labour Party believed in a common sense approach that allowed the private sector space to develop.

However, ahead of his meeting with German Chancellor Angela Merkel on Wednesday, Dr Muscat cautioned against all extremes.

Unsustainable austerity was not the answer to the current challenges Europe faced, he said.

Germany has been at the forefront of championing austerity as a tool for reform.

“The progressive family should adopt the third way... a way that champions common sense,” he said, adding reforms were a necessity not a luxury.

On the domestic front, Dr Muscat said the disability sector was a priority and this year would see the government start delivering on its pledge to have community homes for the disabled.

The running theme of the conference was optimism, with Dr Muscat declaring he was an “incurable optimist”.

“I am an optimist because I am Maltese... we have always been a nation that sees opportunities in difficulties and always found the will to overcome problems,” he said, adding Malta could be a beacon of hope for Europe.

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