Preparing for the adoption of the euro

The first plenary session of the National Euro Changeover Committee (NECC), held on December 1 at the Mediterranean Conference Centre, gave an introduction to the master plan for the changeover from the Maltese lira to the euro.

During the keynote speech, Tonio Fenech, Parliamentary Secretary in the Ministry of Finance, stated that Maltese economic indicators show that the country will be in a position to adopt the euro on January 1, 2008.

Government is determined to ensure that the country meet the Maastricht convergence criteria in this timeframe, allowing it to adopt Europe's single currency on the stipulated E-Day.

Mr Fenech said that the framework for the adoption would be a "Big Bang with a phasing-out period". The adoption of the euro will make Malta more competitive and it is a good opportunity for businesses to make analyses and see how their business can benefit from using the same currency as those in the single market.

From a consumer perspective, the adoption of the euro will result in more transparency for consumers as they will be able to compare prices with other EU countries. A dual price regime will also be implemented.

The master plan highlighting the framework for the adoption of the euro will be published next month. The plan lays out a co-ordinated and national approach to the changeover.

During the plenary session various sub-committees representing different sections of society and businesses gave information on the master plan. Joseph F.X. Zahra, chairman of the NECC, stated that NECC's vision for the adoption of the euro in Malta is to have a seamless changeover - an effective, efficient transition to the euro for the good of society at large.

Carmen Delia, from the Consumers Sectoral Committee, emphasised three main areas of concern during the changeover: adoption of a nationwide, all-inclusive educational campaign, price stability and timing of changeover.

To facilitate the transition, the NECC has also been working on a communications strategy, which has now been adopted by both the NECC and the steering committee. The campaign will kick off in 2006, and there will be a gradual build-up that will peak in 2007.