We now have a new leader of the Nationalist Party and it is expected that very soon we would have a new prime minister. In effect it was indeed surprising how quickly the process was over, thereby eliminating a great deal of the uncertainty that surrounds such events.

The next phase in the process is the election of the deputy leader. Admittedly this is an important post as the elected person shall assume the role of deputy prime minister and possibly that of Leader of the House of Representatives. However, one would not expect much debate on strategies, policies and programmes given the strong role that a party leader tends to have in this country.

Prior to the election of the new PN leader I had argued this should have been viewed more as a continuation of an era than the start of a new one, implying that one hoped that we would not have had an adventurous excursion into new politics, new policies, new programmes.

What happened during the campaign for the PN leadership justified this stand, as all three contenders had attempted to show that they wished to continue where Eddie Fenech Adami is leaving off, even if adopting a different style.

So now we are at the stage of conjecturing as what to expect, even if we can be certain to expect that the government would continue working on the basis of the electoral programme it had presented at last year's general election and which proved to be a winning one. Therefore, in a sense, we are assured that there would be no adventurous excursions into new avenues that may lead us nowhere. Moreover, there is no doubt that the European ideal that has formed part of the PN vision for Malta for the last 25 years will, if anything, be strengthened.

So what else to expect? In what was probably the first interview after his victory last weekend, Lawrence Gonzi stressed that his government would address the issue of pension reform and the sustainability of the public health system.

In a recent interview with The Times, Dr Gonzi said that one needs to attack public service bureaucracy which is raising costs for the business sector and causing aggravation to society in general, especially those that need some service or other from a public service department or a public sector entity.

Dr Gonzi also made reference to the need to create more job opportunities, the need to strengthen the economy and the need to attract more foreign investment. Other pronouncements made by Dr Gonzi make reference to the need that those who hold positions of authority need to be more amenable to the rest of society.

These statements do indicate that the strategy that the new PN leader shall be adopting is to strike the fine balance between the need to achieve good economic results through more job creation and eliminating waste (thereby generating wealth in the country) and the need to make the welfare system more sustainable (thereby maintaining the strong social cohesion that this country has experienced for the last decades).

It shall be an interesting challenge in the light of the increased competition resulting from the continued internationalisation of our economy and the impact of globalisation on our economy and in the light of Malta's accession to the European Union. I would expect the business sector to reap advantages from such a strategy as it would ensure an element of continuity while addressing some of the newer challenges facing our economy.

Moreover, the politics of left and right is known to have failed, and the better performing economies are invariably those that have strong social dialogue, capable of resisting the temptation to resort to conflict to resolve economic issues and maintaining an international competitive advantage that enables them to generate wealth.

One possible good example is Sweden. This country is capable of having growth rates that are higher than average in the European Union while losing none of the characteristics that it has had for several years. The welfare system is still well developed and social dialogue is the order of the day.

One issue that keeps churning in the minds of a number of persons in the business sector is the extent to which the government is able to be decisive in addressing certain issues related to its own internal management. There needs to be a stronger coordination among ministries to be able to benefit fully from the funding programmes and initiatives of the European Union and to put into effect a number of ideas that look so good on paper but never seem to come to fruition. We need to rekindle the energy that has characterised the period of the negotiation process we had with the European Union. Social cohesion and social dialogue, yes; but based on results.

It may seem like an insurmountable challenge. Time will tell. In a typical management situation, this would be the typical opportunity to use the team approach, maximising the involvement of all key decision makers and the social partners, using an "inclusive" style rather than an "exclusive" style.