Labour leader Joseph Muscat has handpicked two moderates - MEP Louis Grech and MP Karmenu Vella - to coordinate the structural changes seen needed to drive the party forward.

The two will form a new executive commission, announced yesterday, which will look into the way the party functions internally so it will start being more effective in achieving results.

The financial and procedural aspects of the party will also form part of the review, to ensure the party becomes more efficient. The commission will be reporting directly to Dr Muscat.

It will start its work this week and Dr Muscat is expecting the entire process of change to be concluded before the year is out.

Contacted by The Times, Dr Muscat said the decision to choose Mr Grech and Mr Vella was based on the experience these two had in leading large corporations.

Mr Grech is a former Air Malta chief executive and chairman while Mr Vella, a former tourism minister, held the post of chairman of Corinthia Hotels International.

"I think they are the ideal people to implement a system where the party's corporate structure is effective, communicates and leads to results," Dr Muscat said.

He stressed that these changes went beyond the statutory reform underway within the party, and would focus more on the party's operations.

Mr Grech and Mr Vella will also be analysing the conclusions of the reports which delved into Labour's electoral defeats in 2003 and 2008 in a bid to address the shortcomings identified.

The appointment of a CEO will be part of the party's internal structural changes. A member of Dr Muscat's core campaign team during the leadership race, James Piscopo, has already been earmarked to take on the new post.

The CEO will be captaining a number of directors who will be responsible for key areas such as communications (including the party media), finances and probably also the electoral office and campaign team.

"Both reports of Labour's electoral defeats recommend the appointment of a CEO and I'm not waiting for a third report to implement this recommendation," Dr Muscat said.

"There will be a totally new structure. These ideas will be implemented as soon as possible. There isn't the need for any statutory or party approval to get the ball rolling."