Although government has not officially announced whether there will be a by-election to replace MP Siddick Chady or just general elections, everything seems to point to the second option. ?We shall announce the dates in the near future,? says prime minister Paul Bérenger. The two-hour press conference, with the whole cabinet in attendance, was an opportunity for the prime minister and his deputy and Finance minister Pravind Jugnauth to make an assessment of the country?s situation at this turning point in their mandate.

The press conference was one way of showing the government?s solidarity. ?The prime minister and myself totally agree on the issue of elections. We know exactly where we?re going,? Pravind Jugnauth said. Both leaders made it clear their parties would go together to the next elections. ?We won?t have to make much effort to win,? the prime minister added. In any case, elections have to be held between August and October next year.

During the whole exercise, the two leaders insisted on the achievements of their government despite ?Labour?s catastrophic heritage.? Terms like ?caring? or ?responsible? government were used several times. The partners took stock of their actions during the past four years, all aimed at ?repairing what the Labour government had squandered?. The prime minister quoted figures to show how bad the situation was when the ruling alliance came into power and how difficult it has been to reach the present level.

The deputy prime minister highlighted that, in spite of the international outlook and the challenges it presents, Mauritius is performing well. Growth for the year 2004 can match that of most developed countries.

The economic situation of the country was reviewed and the government put particular emphasis on investment rates, which are ?extremely encouraging. Likewise, foreign direct investment is on the increase compared to previous years.

As for the tourist sector, Paul Bérenger said the mood had improved among the main stakeholders. Marketing has experienced a major breakthrough after the cabinet voted in favour of the «fifth freedom rights» to Australia and India. This will allow Australian and Indian airlines to embark and disembark passengers in Mauritius on their route to and from South Africa. ?This will boost the sector and make us a regional tourism hub,? the PM added.

Although there are reasons for worry, the prime minister remains confident about the future. But some prices will go up, like ration rice (from Rs 2.50 to 3.50) and bus tickets (by 1 to 2 rupees depending on the distance) but these increases have been kept to a minimum. As a ?caring government?, it says it has managed to prevent the higher import bills for gas and flour from being passed on to consumers.

As for bus fares, the leaders made it clear that they didn?t really have any choice, as it is a question of ?survival? for bus companies. They had to face losses of Rs 386 million. The bus operators will get subsidies of Rs 35 million a year and exemption from value added tax. A monitoring committee has also been set up to improve the service.

In view of the Cabinet?s reaction to rumours of an alliance between one of the government partners and the Labour party, the government ?has never considered this possibility?. As soon as a journalist asked the question, all the ministers went into a big laugh? Nearly too good to be true!

The leaders have in any case made it clear that ?no rapprochement is on?. The PM went even further. ?We?ve realised that we have the same vision of life and conception of our duty and conscience.? In these circumstances, how could one think of any other alliance?

But the tone has lately been different between the prime minister and the opposition leader, Navin Ramgoolam. The relationship looks more cordial and serene. ?There has been a change in the tone and behaviour of the opposition leader. He is less irresponsible, less hysterical. I can only be happy to note this as it will definitely benefit the country.? However, this did not prevent negative adjectives being used to qualify other opposition members.

The government alliance has thus set the political tone. It is going together to the next elections scheduled for September 2005 whether the opposition likes it or not. The Labour party, for its part, thinks that the government is ?out of place? and general elections should be held long before next September.

But, once again, the prime minister firmly declared that it was out of the question to hold the elections before August 2005 at the earliest. This is the only hint that came out: no set date, no winning formula? This press conference looked more like a show? and the beginning of a long electoral campaign!

Price increases for ration rice and bus tickets have been kept to a minimum. As a ?caring government?, it says it managed to prevent the higher import bills for gas and flour from being passed on to the consumers.?

Economic barometer shows pessimism

The government and economic analysts seem to have contradictory viewpoints on the economic situation. A poll conducted by Pluriconseil for l?express shows how pessimistic Mauritian analysts are about the future of the economy. 53% are either quite pessimistic or very pessimistic while 47% are said to be quite optimistic. The economic situation is undeniably not at its best: consumption is going down; import prices are increasing, employment is threatened as well as the three main sectors. Sugar is facing the EU sugar reform in 2006, the textile industry has been going through tough times and future perspectives are no brighter. Tourism, seen so far as the way of emerging from the crisis, is not developing fast enough to guarantee that the economy will improve.

Despite all the prime minister?s words of encouragement, the mood among analysts remains gloomy. External factors such as the rise in oil prices, general elections in the United States next November and in Mauritius next year ? could well lead to an economic standstill.