Tonio Fenech bites the euro

Malta took another giant step towards euro adoption yesterday when a mint in Bordeaux, France, started producing euro coins carrying Maltese national symbols.

The Governor of the Central Bank of Malta, Michael Bonello pushed the button to start mass production and a beaming Parliamentary Secretary Tonio Fenech, amid applause, followed a centuries-old tradition of biting the first coin to ensure it is of the right quality.

"This is the physical manifestation of Malta's euro adoption process, an extensive economic and logistical exercise which is nearing completion" Mr Bonello said.

For Mr Fenech this was "a great historical experience".

"I hope that when the Maltese people hold these coins, they will appreciate the great feat their country has achieved in being able to qualify to join the second most important currency in the world," he said.

Yesterday's was also a very special moment for Noel Galea Bason. He designed Malta's euro coins and had also designed the Maltese currency now in circulation.

"This is the highlight of my career," he said after closely examining the shiny and still warm first coins.

The Monnaie de Paris, which won the €6 million contract from the Central Bank of Malta, will be producing 200 million Maltese euro coins in eight denominations with a value of €56 million. Production is at the rate of 800 coins a minute.

The consignment, weighing 1,000 tonnes, will be shipped to Malta in September/October and the first coins will reach the public on December 1 when retailer packs start to be distributed by the banks followed on December 10 by consumer packs.

The formal launch of the minting process came just 10 days after Ecofin, the EU council of finance ministers, gave final approval for Malta to adopt the euro on January 1, 2008.

The Maltese coins will feature the Mnajdra temples on the one, two and five euro cent coins, the Maltese coat of arms on the 10, 20 and 50 euro cent coins and the eight-pointed Maltese cross on the one and two euro coins.

Euro banknotes are identical in all countries and do not carry national symbols. Malta will not be producing banknotes but will use 80 million banknotes having a value of €1 billion from stocks of the European system of central banks.

In September, the NECC will start distributing plastic euro coins to help the public familiarise itself with the new coins.

Mr Fenech disclosed at a press conference yesterday that following the success of the Fair system, talks were being held with importers on a price stability agreement to cover the euro transition period.