A huge crowd of Labour supporters burst into cheers and a cacophony of horns as Joseph Muscat was driven down Republic Street for his swearing-in at the Palace.
Dr Muscat arrived shortly before 11 a.m. in his dark Alfa car escorted by two police outriders, with a police car behind him.
The car was driven slowly down the street as supporters waved thousands of flags.
Half-way down, Dr Muscat and Mrs Muscat got out of their car to walk the remainder of the way holding their young twins dressed in pretty blue and white dresses.
Many of the people had been waiting behind the police barriers for hours.
Food kiosks were set up in St Anne Street and near the Auberge de Castille, where the climax of the celebrations will be reached when the new prime minister makes an appearance from the window of the Office of the Prime minister.
Some of the kiosks are also selling souvenirs including Thank You Joseph t-shirts.
Some people positioned themselves in St George's Square as early as 8 a.m. to record the historic moment when the new prime minister will appear on the Palace balcony with President George Abela.
He will then walk to the Auberge de Castille.
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