Prime Minister Lawrence Gonzi failed two democratic tests in this legislature, when he ignored the people's vote during the divorce referendum and when he failed to admit that he lost the majority in Parliament during Thursday 's no-confidence motion, Labour leader Joseph Muscat said this morning.

"He is acting like a politician of the past... he is trying to buy time," Dr Muscat told a packed hall at the Labour Party club in Marsaxlokk.

He stressed that the PL is in no hurry for a general election but, for every day that passed and Dr Gonzi did not call the election, there would be further instability.

Ultimately it was the families and businesses that were suffering due to this instability caused because Dr Gonzi was clinging onto power, he said.

He said that Dr Gonzi was allowing a clique of people to hold the county hostage by not doing the right thing and calling a general election.

When the Prime Minister went to Brussels for a meeting on the euro zone crisis, he was sure that the representatives of the other countries would be questioning whether Dr Gonzi had the power to implement important decisions, Dr Muscat said.

Dr Muscat said that by Tuesday the Prime Minister had to officially announce whether a general election will be held in March or whether there will only be the local council elections – when half the country would vote.

Dr Muscat said he had no doubt the Prime Minister would opt for the most irresponsible route and just have the local council elections. He accused the government of "playing with democracy" by dissolving the Sliema local council – that was due to have an election next year – so that it would look like the Nationalists did better in the local council elections.

Despite this the PL was ready for these elections, as well as a general election, he said adding: "bring them on".