President George Abela this morning appealed to the people to be cautious with their money and develop a culture of saving, especially in view of the economic situation.

"We cannot live in a world of our own and believe that what is happening abroad is not going to hit us... We have to be aware of the situation and think of tomorrow and not just of today," he said

Dr Abela was speaking during the exchange of New Year greetings at the Palace in Valletta this morning.

Among those giving the President and Mrs Abela their new year wishes were the Prime Minister and cabinet, Opposition leader and Mrs Muscat, the Speaker and the Chief Justice and the judiciary.

Dr Abela said there was no guarantee that Malta would not be affected by the economic challenges and people should not spend more than they can afford.

The President also spoke on the importance of unity to be able to face this challenge.

"Without unity, we cannot face this tempest. The country has to be united to take care of what it has achieved and grow further... Life is not easy and we always have to fight it."

He called on people to have of optimism, courage and hope.

Prime Minister Lawrence Gonzi also spoke on the economic challenges which the country had to continue facing prudently.

"Our expectations can be threatened by the economic climate around us. It is what it is," he said.

He said that although 2011 had been a tough year, the values of solidarity, prudence and determination had flourished.

Dr Gonzi also expressed appreciation that the President was putting forward the beautiful value of unity.

Opposition leader Joseph Muscat also spoke on the need of unity and stability and said that decisions had to be taken based on the real issues.

The people's interest, he said, was the national interest

Dr Abela told the Chief Justice and members of the judiciary that he knew they were doing their best to satisfy the people's needs. One major issue being addressed was that of delays. People, he said, deserved justice in a reasonable time.

The Cabinet and the Opposition also made separate calls on Archbishop Paul Cremona.

Mgr Cremona said the family needed to rediscover its role to educate children about values such as honesty, solidarity and generosity.

Mgr Cremona also spoke about the importance of educating young people in justice and peace.

He stressed on the values of human dignity and the family and spoke about how, during his lifetime, Jesus Christ cherished these values.