In the debate on the introduction of the euro, we are always amazed by the number of red herrings that are actually released. We do not believe that if inflation reared its head in countries that introduced the euro some years ago it is logical to predict that it will happen here as well.

The difficulties encountered in the past by other EU member states are more than a sufficient eye-opener for Maltese policy makers to understand what pitfalls have to be avoided in the current exercise. We have no reason to believe that the authorities are walking blindly into the pit.

Latest opinion polls carried out by the EU showing an increase in pessimism in Malta on the introduction of the euro, seem to us to be caused by the fact that information on the process is only now beginning to be felt in Maltese society.

Previously the field had been left free to professional tattlers. For example, it is not true that when the euro is introduced prices will be equalised with those of the rest of the EU.

It will still be more expensive to shop for certain things in London than it would be in Catania just as some goods and services command a higher price in Bay Street than they do in San Gwann.

Consumer societies should now also step in and double their effort to ensure that the changeover takes place with the least inconvenience to consumers.

Government's introduction of FAIR is indeed helpful to achieve this goal. FAIR stands for Fair-pricing Agreements in Retailing (FAIR). It consists of a commitment by a business organisation to take up and communicate best practices in preparation for the changeover to the euro.

It is an opportunity for retailers to undertake a commitment to fair pricing strategies during the changeover period.

FAIR enables retailers to phase in dual display of prices gradually in a more manageable way and prior to the mandatory period due in July 2007.

It instils confidence and increases familiarity with pricing in the new currency for the benefit of the business organisation itself and its clients. It ensures fairness and transparency in the business's pricing and provides it with the FAIR 'trust mark' (to be displayed at shop window level) telling would-be customers that that outlet is serious and is not up to some hanky panky when it comes to fixing prices.

A business which displays such a sign is telling its customers that it is acting their best interests.

The management and monitoring of FAIR is carried out by the Euro Observatory on behalf of the Ministry of Finance.

Businesses are to be encouraged to prepare ahead of deadlines and to conform to such requirements because these also increase public confidence in their organisation as well as in the whole exercise itself. These and similar efforts, which will be announced in the future, have one single pay-off: the smooth introduction of the euro.

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