Updated | Muscat says country now has 'two Prime Ministers'

Updated with PN's statement at 4:25pm

Reacting to Joseph Muscat's comments, the Nationalist Party said that "Maltese families are interested in jobs, health, education and better quality of life and not in the clash of personalities and personal agendas".

"The political situation has now been cleared: Jeffrey Pullicino Orlando has declared that he will continue supporting government even though he resigned from the party," the PN's spokesman said.

The party said that while it had an electoral programme to complete, Muscat was "putting his personal agenda before the priorities of the Maltese families because he wants to become Malta's youngest prime minister".

The PN also accused the Opposition of fomenting uncertainty. 

Earlier

Labour leader Joseph Muscat said that Prime Minister Lawrence Gonzi is "in office but not in power" and in reference to Jeffrey Pullicino Orlando's resignation from the Nationalist Party he added that the country now has "two Prime Ministers."

During an interview on Labour's radio station, Muscat said in the last hours Gonzi has proved that he is ready to do anything to hold on to power, "even if the country now has another Prime Minister."

"Nobody should be surprised with has happened in the last few hours. The writing was on the wall. The situation was bad and it will get worse."

He added that electorally, the Labour Party can only gain from this situation because the people can now see the true colours of government.

"The electorate voted in a PN government and not a coalition. This majority ended yesterday," Muscat noted, adding that nobody envisaged such a scenario four years ago.

Muscat said although he was always very cautious on calling for an election, now general consensus exists among the people, the independent media and civil society that the Prime Minister has the duty to call an election.

The Opposition leader explained that the political instability did not start this year but the Prime Minister's woes started in 2009 with St John's Co-cathedral saga which was followed by a string of events which have finally led to at least three government MPs having problems with the Nationalist Party.

He said at least ten government MPs "or a third of the government's parliamentary group" have problems with the Prime Minister.

"Now the government has lost its majority and enjoys an external qualified support.

It is like having two Prime Ministers."

He described the situation as "ridiculous" and said the Prime Minister is accepting everything as long as he remains stuck to power."

Muscat reiterated that we now have a hung Parliament, however cast doubts on whether the agreement between Pullicino Orlando and the Nationalist Party really constitutes a coalition.

"If it is not a coalition one has to wait and see what shape it takes," Muscat said.

He said the electorate is in a confused state and "the people do not appreciate this kind of shambolic situation."

"Every day that goes by is a wasted day for our families and businesses, it is no good for the stability of the country and major decisions are already being postponed by businesses."

"Gonzi, who, until some time ago had declared he wanted unconditional support, which it was clear he now does not have, is doing anything to remain in power," Muscat said.

Asked whether the opposition was willing to reach a coalition agreement with Pullicino Orlando, Muscat said that "although this would be constitutionally correct, it would not be democratically so. The way forward is a general election."

He explained that Labour is in no hurry to go to elections, and said if Gonzi wants to go ahead "its up to him but he must shoulder the responsibility for the possible slowdown in investment."

Asked whether the Opposition will table a motion of no-confidence, Muscat said "The party will do what is in the country's best interest and will act at the right time."

Muscat added that the "ball is in the Prime Minister's court and he must now show and prove his leadership."

On Gonzi's hesitance on consulting with the President Of the Republic, Muscat said the Prime Minister "has the duty to inform the President on the changes in the political scenario."

He added that the Constitution does not state that a government's term must last for a full five years and added that Gonzi no longer enjoys an unconditional or unequivocal majority.