Labour leader Joseph Muscat said today that the Moody's report which downgraded Malta's credit rating was not a tragedy, but it could not be ignored, as the government seemed to be doing.
Speaking on One Radio, Dr Muscat said the Labour Party believed that the Maltese economy could be salvaged. What was most worrying was not the downgrade, but rather the 'negative outlook' which the ratings agency had given to Malta.
The negative outlook had to be seen in the context of the NSO revision of Malta's 2009 GDP figures, when the economy contracted far more than initially reported.
What the Prime minister had said in his reaction to the Moody's report - about carrying on without change - was worrying, Dr Muscat said.
Dr Gonzi was showing himself to be in denial. One needed to admit there was a problem in order to solve it, but Dr Gonzi was not admitting the problem.
This, Dr Muscat said, was the time for the government to 'come clean' about the economy. To leave everything unchanged meant the government would continue to do the same things which had got Malta to this negative situation, and to this negative outlook.
True, part of the situation was dictated by the international situation, Dr Muscat said, but the Moody's report also pointed to domestic problems which the people were well aware of.
The government could not continue to ignore the reality faced by the people.
Most people's salaries were running out within the third week of every month. It was a situation which demanded change, rather than leaving everything as it is.
The government needed to reduce utility costs and stop introducing new taxes by stealth. It needed to get its priorities right, rather than squander on a new Parliament House.
It needed to get the public debt in check, it needed to stop taking mistaken decisions such as extending the power station using heavy fuel oil, only to then say it planned to convert it to gas, as huge expense.
The government needed to control inflation rather than fuel it. It needed to bring about better conditions of work, boost the participation rate, and ensure that workers' purchasing power improved, Dr Muscat said.