Prolonging the political crisis caused by the government’s loss of its one-seat parliamentary majority can have negative repercussions on the economy, employers are warning.

According to Malta Employers’ Association president Joe Farrugia, all necessary measures should be taken to resolve the matter, “irrespective of whether the solution is an election or some form of arrangement to have a stable Parliament”.

Mr Farrugia said the crisis was cause for concern and along with other business leaders who spoke to The Times yesterday, called for a quick resolution to the turmoil.

The political crisis that developed over the weekend was prompted by Nationalist backbencher Franco Debono’s decision to withdraw his support for the government.

Malta Developers Association president Michael Falzon said it was normal for the construction industry to slow down for a few months before and just after an election but the current situation had left people wondering whether the government was going to survive the full term or not.

If the current uncertainty lasted for a long time, he added, the problem would become more acute, making it difficult for investors to take the necessary business decisions.

“The best way out would be for Malta to have a stable government and if that implies an election then so be it,” Mr Falzon, a former Nationalist minister, said.

A quick resolution to the crisis is also important for the tourism sector, according to Malta Hotels and Restaurants Association senior vice president George Micallef.

“Given the very difficult economic circumstances, particularly in our source markets, we definitely cannot afford uncertainty and instability over a long period,” Mr Micallef said, calling on the political parties to address the issue with urgency.

On a similar note, Paul Abela, the president of the Chamber for Small and Medium Enterprises, GRTU, insisted that in what promised to be a difficult year, the last thing businesses wanted was political turmoil.

Instability was good for no one, he added, and the “internal matters of a political party in government” should be resolved as quickly as possible.

“I will not enter into the merits of what the solution should be but as we sit in the same boat facing the storm together, the last thing we want is to start rocking the boat because of infighting,” Mr Abela said.