The Maltese economy was holding its own despite the international recession, but there was no room for complacency and the people must not be afraid of taking somewhat painful decisions which could reap dividends once the situation improved, Prime Minister Lawrence Gonzi said today.

He said the economy enjoyed some good news last week, including the increased investment in SmartCity and the quick take-up of the Midi bonds.

But the governemnt was monitoring developments every day, knowing that weak demand in other countries affected factories in Malta.

It was also concerned about how weakening economies abroad, such as in the UK, would impact on tourism here. In this context, however, the Ryanair announcement of two new routes to UK airports was a welcome tonic.

The people, Dr Gonzi said, needed to work together and not be afraid to take decisions to strengthen the country and modernise the economy so that it would emerge stronger from the current situation.

The Prime Minister said the first months of this legislature had been very intensive, with the government setting out reforms in MEPA, education, rent laws and local councils, among other sectors.

The MEPA reform document was now being finalised and he had also been presented with a document on the local councils reform. The rent reform was before Parliament and he hoped the Opposition would present its amendments so that they could be discussed. There had also been a good reaction for the education proposals.

Dr Gonzi said the consensus achieved on his proposal to nominate George Abela to the presidency showed how the country had matured politically, and this was a significant step towards greater unity among the people.

The Prime Minister also underlined the importance of proposals made last week on climate change measures and urged the people to participate in the consultation process.