Issue link: https://maltatoday.uberflip.com/i/1190498
JOSEPH Muscat's government will go down in local history as the first to self-combust, not for political reasons, but for judicial ones. The only silver lining is that his descent from the glory of winning elections with unprec- edented electoral margins, to a sudden and deservedly inglo- rious exit tainted by Daphne Caruana Galizia's assassination, has now exposed the intersec- tions between politics, big busi- ness and organised crime. The political question now is: does his fall from grace spell the end of the movement assem- bled by Muscat which included segments of big business, float- ing voters aspiring for a better country, switchers seeking per- sonal gain, campaigners for civil liberties, and Labour's ever loyal but always taken-for-granted working-class core? The coali- tion was robust enough to sur- vive the Panama Papers scandal and the institutional paralysis which followed it. Will it outlive Muscat? Much depends on the position- ing of the new Labour leader, even if the chalice offered to him may be too poisoned for him or her to be in a position to hold it all together. But Muscat's implosion and the reverberations from the in- vestigation, already dealt a fatal blow to Muscat's failed politi- cal project. Moreover, the very dynamics of this coalition may well have speeded up Muscat's fall from grace and the country's descent to hubris. Keith Schembri at the heart of the state Take Keith Schembri. He is credited as the chief architect of Muscat's electoral success. Mus- cat had appointed him to the most important position of trust despite being a successful busi- nessman with many fingers in the pie. In that role he served as an important peg between gov- ernment and big business inter- ests in a period characterised by economic growth, but also con- troversial land and asset grabs. His buddy Yorgen Fenech, the scion of the powerful Tumas Group, now stands accused of the assassination of Daphne Caruana Galizia and has now turned against Schembri. Yet Fenech, whose secret company 17 Black was tied to Schembri's Panama company, was also piv- otal for Labour's energy policies, having formed part of the Elec- trogas consortium. Still Schembri's contribution to Muscat was deemed so valu- able that the PM repeatedly closed an eye on his offshore business even after November 2018, when Yorgen Fenech was outed as the owner of 17 Black and Muscat was aware of his possible involvement in the as- sassination, after being informed by the Security Service in meet- ings where Schembri himself was present. With Schembri out of the pic- ture Labour may have lost an important ally in a traditionally hostile sector. It did so by wid- ening the circle of beneficiaries, including many who felt exclud- ed under previous administra- tions. But even before the latest events, the task of keeping eve- ryone happy on board Muscat's gravy train was becoming com- plicated as a bolder civil society started to fight back. Big business and politics The new Labour leader faces a quandary: that of changing the modus operandi of an economy on steroids, without inflicting shock treatment which may re- sult in devastating withdrawal symptoms. Business does not thrive in in- stability and Labour is now un- der pressure from business or- ganisations to provide closure. For as a party in government, Labour will still have to estab- lish a new relationship with lo- cal business leaders and foreign investors, retaining a dialogue without over-familiarity, shady deals, and putting some brakes on unsustainable development. The relationship between gov- ernment and construction mo- guls will be a major test for any Labour leader, as it has created the first cracks pitting residents, including floaters and even tra- ditional Labourites, against La- bour's new allies in business. One also has to see how a change in leadership will im- pact on the shady deals with foreign interests, including the Jordanian Sadeen group, whose 'university' plans in Cottonera and Zonqor have alienated lo- cal communities, and Henley & Partners, whose citizenship scheme adds to the reputational damage even if its monies con- tinue to fill the coffers. Moreover, any Labour leader will have to contend with the fall-out from increased scrutiny of Malta's role in the global fi- nancial economy which pre- dates Labour and which gener- ates the revenue which enabled Maltese governments to ditch austerity. The ghosts of Labour past While so far Muscat has not lost the adulation of a large seg- ment of Labour voters constant- ly kept in line by a strong media machine and the allure of his narrative of progress, his sudden fall from grace may have shat- tered one of his greatest accom- plishments: that of exorcising the fear that Labour in govern- ment is harmful to the country's stability and serenity. The sudden collapse of his 'house of cards' and the circum- stances behind it, has inevitably rekindled memories of Labour's more tragic moments, which obscure the great social reforms enacted under Labour adminis- trations. Moreover, his refusal to bow down and resign immediately has worsened the situation. For by doing so he has brought the country to the brink of civil unrest. This has brought back memories of the confronta- tional style of politics in the 1980s and the Labour celebrations marking the 'victory' of its partnership model after the EU referendum. Such memories may well cloud the judgement of a whole generation of activists and intellectuals. Many may still be in denial, but Labour has surely lost its influence among a sizeable number of people who would normally support a progressive, left- leaning government. Their vilification only serves to reinforce resentment and pave the way for a radicali- sation which may have un- foreseen consequences. It also remains to be seen how Labour's crop of ex- Nationalists will fare un- der a new leader: some like propagandist Karl Stagno Navarra and policy advi- sor Robert Musumeci have firmly supported Muscat right up to the end, but others like Cyrus Engerer who may be more in tune with floaters, have respectfully asked him to step aside. Any new La- bour leader may be under pres- sure to close ranks as mili- tants become more wary of blow- back from suspicious 6 maltatoday | SUNDAY • 8 DECEMBER 2019 NEWS After Joseph, will Labour lose its gel? Muscat's presidential hold over a formidable coalition of contradictory interests went beyond the boundaries of Labour's electoral might, further centralised power in the hands of an unelected cabal whose fingerprints are now all over Daphne Caruana Galizia's assassination. Will the fall of Muscat's house of cards spell the end of the movement? tional style of politics in the 1980s and the Labour celebrations marking the 'victory' of its partnership model after the EU referendum. Such memories may well cloud the judgement of a whole generation of activists and intellectuals. Many may still be in denial, but Labour has surely lost its influence among a sizeable number of people who would normally support a progressive, left- leaning government. Their vilification only serves to reinforce resentment and pave the way for a radicali- sation which may have un- foreseen consequences. It also remains to be seen how Labour's crop of ex- Nationalists will fare un- der a new leader: some like propagandist Karl Stagno Navarra and policy advi- sor Robert Musumeci have firmly supported Muscat right up to the end, but others like Cyrus Engerer who may be more in tune with floaters, have respectfully asked him to step aside. Any new La- bour leader may be under pres- sure to close ranks as mili- tants become more wary of blow- back from suspicious After Joseph, will Labour lose its gel? Muscat's presidential hold over a formidable coalition of contradictory interests went beyond the boundaries of Labour's electoral might, further centralised power in the hands of an unelected cabal whose fingerprints are now all over Daphne Caruana Galizia's assassination. Will the fall of Muscat's house of cards spell the end of JAMES DEBONO DEBONO