The leaders of the two main political parties have both marked a proverbial line in the sand as they stare into the cauldron of electoral debate. Though the pot is quite cold - at least for the time being - it is clear already that the heat is on. There is little doubt that how they act and react in the coming weeks and months will go some way to determining their fate.

Personality will no doubt play an important role in the campaign. Labour leader Alfred Sant has got off to a bad start in this regard. His mystifying approach as he addressed supporters in Birzebbuga during an Independence Day meeting, and his unconvincing attempt to dismiss the whole episode as a bad joke, did little to endear him to the wider electorate. The man he must beat, Lawrence Gonzi, has on the other benefited from an uplifting wind in his sails. More restrained, more statesmanlike, he has been taking his case to the country.

But ultimately it is policies and judgment that should count most when it comes to choosing the next government. Dr Sant's track record here has not been encouraging so far, either. In 2003, he opposed European Union membership and two years later criticised the government's decision to join the Exchange Rate Mechanism, which he described as "hurried, premature and against the national interest". Two years on, and Malta is on the eve of another momentous chapter in his history: joining the Eurozone, which will happen as the clock strikes midnight on the morning of January 1.

This is thanks to Dr Gonzi's ability to take bold decisions when they were needed most, even if they were painful at the time. In 2004, Malta's deficit was at an all-time high of 10 per cent of GDP. The national debt and inflation were rising. By the beginning of this year, the deficit had been slashed to 2.6 per cent and it is projected to drop further. The national debt is falling and inflation was reined in to a level that fell within the European Central Bank criteria. The Prime Minister is now beginning to reap the good seeds he sowed.

During his visit to Malta early last week, European Central Bank president Jean-Claude Trichet described Malta's journey towards euro adoption as "remarkable". And he told The Times in an interview: "I am very impressed by what has been done so far with regard to information by both the Central Bank of Malta and the National Euro Changeover Committee. The campaign is exemplary and they have demonstrated that a small island like Malta can still do a great job."

European Monetary Affairs Commissioner Joaquin Almunia was equally effusive in his praise: "The advantages of the euro are huge," he said, "I am sure you can succeed and you can count on our co-operation." He congratulated the government for its "excellent work for an excellent changeover".

But the hard work will not be over when Malta adopts the euro. On the contrary, in some ways it will only just begin. The country must adapt to the new currency and use it to maximum advantage. And everyone must be on their guard to ensure that vendors and service providers do not take advantage of the euro changeover.

There will be other challenges too, chief among them being the rising price of oil and cereals. It will no doubt be tempting for some to try to gain political advantage by associating unrelated price rises to the introduction of the single currency. But surely this would be little more than expedient, and irresponsible, campaigning.

Potential voters will have to take a close look at policies, and bear in mind that - as has been the case before - long-term gain may still require pain. So far the government's approach has been to keep a close eye on oil prices and adjust the fuel surcharge accordingly. Labour's approach, on the other hand, is to promise to halve the fuel surcharge irrespective of the international scenario. The electorate will also have to make a judgment on who is best equipped to take the country forward - now and in the medium term.

Dr Gonzi is the one, the only one, with the power to blow the whistle and launch the electoral campaign. That will be an important decision. But certainly not the first he has had to take in recent years.