Fenech Adami was re-elected with a modest majority in 1992; his popularity, however, wavered during his second term of office amid further economic reforms, particularly the introduction of VAT, and the re-branding of the main opposition party with a new and more dynamic leader, Alfred Sant. Losing power in 1996, Fenech Adami was returned as prime minister within twenty-two months, after the Labour government's decision to call a snap election backfired. Reversing the unpopular economic policies of the Labour Party, Fenech Adami reactivated Malta's EU membership application and initiated further economic reforms.