Budget Day is practically round the corner and the pitch of the economic debate is evidently rising. It is probably to be expected since it is the first budget to be presented by Lawrence Gonzi, not so much because he is the current Prime Minister but rather because it is the first budget to be presented by him as Minister of Finance.

The nature of the expectancy is linked to the nature of fiscal policies he is likely to adopt, also because of the need to get public finances on track to enable the country to adopt the euro at the earliest possible moment. It is also the first budget since joining the EU, now that the euphoria of membership has died down.

We have grown accustomed to the fact that the budget (the Italians seem to have a better name for it as they call it manovra finanziaria - financial moves) is not some sort of Christmas come early, when the government distributes its goodies, while collecting as much tax as possible.

Although there are attempts year in year out to assess the budget on the basis of how it hits each individual's pocket, today it is recognised that the budget is an economic tool and must be assessed on how it will affect the economy.

It is recognised that by and large one's economic wellbeing is not enhanced by individual measures such as increasing a benefit here and a benefit there, but by the manner in which the budget helps or hinders economic growth. This is what makes the budget, due to be presented in the next couple of weeks, crucial. It is being presented at a time when economists cannot agree among themselves whether the international economy has picked up momentum or not. So any fiscal tightening (and there must be an element of fiscal tightening) cannot be seen to be hindering productive investment, in particular in the three most important mainstays of the economy: manufacturing; tourism; and services.

It is also being presented at a time when consumer confidence is at a level that is lower than we have been accustomed to in past years. Therefore the commercial sector would be looking forward to a boost of consumer confidence.

One has to understand why consumer confidence is at a low ebb. Being such a nebulous thing, one can never be certain, however. The reason seems to be the restructuring taking place within public entities. Consumers need to appreciate that this restructuring process is required, in order to have a leaner, more efficient and more productive public sector, one that does not drag the economy down. So this restructuring should not be leading to a drop in consumer confidence but to an increase. In stock markets abroad, a company that goes through a restructuring process normally experiences an increase in its share price. The problems being experienced by public entities are there and are real, but the restructuring process they are going through should not be viewed as the cause of the problems but as the solution to them.

Budget fever is also fairly high because the country is no longer in preparation mode for EU membership. This is now behind us. I think that at the moment we are in a two-mode situation. We are gearing up for the adoption of the euro as a currency with all its commitments but also all its advantages; but in the meantime we are finally getting used to life within the EU with its impact on business and individuals.

So far the adoption of the euro has simply meant a debate on the level of the fiscal deficit compared to the gross domestic product (since this is one of the criteria for joining the euro).

In effect, the adoption of the euro shall impact heavily on business as it will bring about more stability in terms of foreign exchange risks. This means a benefit for several but a loss of earnings for others. Linked to the adoption of the euro is the decision to move from the current cash-based system in government accounting to an accrual-based system. It may seem like a small decision but it will give a truer and fairer view of public finances.

Life within the EU may not seem to be so different from life outside it. However, one needs to assess fully how it has affected government revenues. Moreover there is still a great deal of work to be done to enable businesses and individuals to access EU-funded projects, thereby supporting the economy. The budget should address these two issues because there is the expectation that it should.

Another aspect that needs to be considered about the budget is that today we can certainly claim to have met the key political and social objectives on which there is agreement across the political spectrum and across the country. Therefore, although the budget has social and political aims that any government may wish to achieve, its key (if not exclusive) aspect this time round must be the economic strategy that the government wishes to adopt and the measures that are to be taken as part of this strategy. It will have to be judged on how valid, relevant and realistic this strategy and the measures are that come with it.

We have probably never been in this situation before, and therefore one can understand why budget fever is already with us, although few seem to admit it.