International financial confidence in Malta has made a remarkable recovery in the past six months. A general feeling of economic malaise had been apparent for some time, when our destiny as a member of the European Union hung in the balance.

This is no longer the case. Malta's socialists seem to be eager to make their voice heard in the European Parliament, where they are certain to resolve to build a continent free from internecine conflicts.

As regards the country credit rating scorecard, published by Institutional Investor magazine, arguably the world's most prestigious financial publication, Malta's last six-month record was the best in the world.

It must be noted that the credit rating published by Institutional Investor is different from that published by S&P (Standard and Poor's) and the other rating agencies, which measure the ability of a country to pay its international debts. The prestige of a rating agency like S&P has touched rock bottom because of its failure to notice the blatant Parmalat fraud, the Institutional Investor credit ratings are as yet unassailed by serious criticism.

After six months of being relegated to the 41st position, Malta is back to its old, excellent position of 28th out of 172 countries in terms of credit rating.

Institutional Investor stated: "One of Western Europe's smallest countries, Malta, experienced the biggest increase, rising 8.9 points."

"It's one of the accession states," notes Conrad Schuller, chief economist of the Erste Bank in Vienna. "That says it all." Malta is one of the ten nations slated to join the EU on Saturday.

An important point which comes out of Institutional Investor's March 2004 Country Credit Ratings is the fact that of the countries joining the EU, only prosperous Slovenia has a higher rating than Malta.

My conclusion is that as such an authoritative source as Institutional Investor has faith in Malta's money, our entrepreneurs should be thinking of ways and means of banking on this rise in confidence.