Euro perceptions

The European Commission has recently published the results of a Eurobarometer survey (that is a survey that was conducted in a number of countries, members of the EU) that dealt with the introduction of the euro. What concerns us is the results of the survey among Maltese respondents, in view of the fact that the euro will become our currency as from January 2008. The survey sought to find out perceptions on a number of issues connected to the euro.

It is interesting to note that the Maltese public perceives itself to be very knowledgeable about the euro changeover. This may not be real knowledge, nor would it be comprehensive knowledge. However, such a high level of perceived knowledge is indicative of an exceedingly high level of interest in the subject.

The adoption of the euro as our national currency is an issue that has attracted people's attention and does not seem to cause much uncertainty. This lack of uncertainty is proven by the fact that respondents feel they are well or very well informed about the euro changeover.

The presence of any significant degree of uncertainty would have caused respondents to claim they are not well informed.

Moreover, this result is indicative of a great degree of acceptance of the euro. The high degree of acceptance is also a result of a large percentage of the population claiming to have seen and used euro coins and banknotes.

The survey also showed that Maltese respondents are not generally aware that the adoption of the euro is mandatory for all new member states (even if the decision on the adoption date is left to the individual member state) and that euro notes are the same across all members of the eurozone. However, these are irrelevant issues and are not indicative of uncertainty or a lack of acceptance. Another set of questions focused on whether the euro is seen to be beneficial or not to the country and to themselves personally. The Maltese see the euro to be more beneficial to them personally than for the country.

However, the percentage of respondents who claim that the euro is beneficial for Malta is increasing, and are more than those who feel that the euro is not beneficial for Malta.

The level of those who feel the euro is beneficial to them personally is around the same level of those who had expressed support for membership of the EU back in 2003, and as such are in an absolute majority. There is an evident fear of price increases as a result of the adoption of the euro. This is probably the only significant risk that is associated with the euro. Other minor risks are the possible loss of national identity, the possible loss of control over economic policy and the possible inconvenience that may be caused by the introduction of a new currency.

Given the great degree of acceptance of the euro, it becomes incumbent on all the social partners to make sure that the risk of price increases does not become a reality as it would be a great disservice to the economy and to the Maltese if this were to happen.

Cheaters have to be named and shamed and there cannot be two ways about it.

In terms of benefits resulting from the adoption of the euro, the level of awareness is still low. However, improved price stability, more growth and employment and more sound public finances all hover around the 50 per cent mark as named benefits.

One would expect awareness of such benefits to increase over the coming months.

What this survey says is indeed very positive. The people responsible for the euro changeover have managed to rally the support of the vast majority of the population in the implementation of this project. It is indicative that the Maltese believe in the European dream and of the positive role the EU has in our lives.

Maybe one piece of anecdotal evidence shows this recognition of the importance of EU membership in our economy - the amount of foreign direct investment projects coming to Malta because a number of foreign investors believe that EU membership makes Malta an attractive investment location. This is certainly not a question of perceptions.