Price stability agreements end tomorrow
Minister warns against unjustified price increases
As the price stability agreements following the introduction of the euro come to an end tomorrow, both the Finance Minister and employers insisted yesterday that this should not automatically lead to a hike in prices.
The agreement had been reached with importers, distributors and companies as they voluntarily pledged not to increase prices to ensure a smooth transition to the euro, introduced last January.
"We are not expecting anything to happen... business will continue as usual," Finance Minister Tonio Fenech said, when contacted.
On the other hand, Malta Employers Association executive director Joe Farrugia said that prices were regulated by the market and it was not in the interests of employers that they were increased.
Judging by the information received by the Government from importers, Mr Fenech said there should not be a hike in prices. The signatories themselves had always insisted that prices would not increase once the agreements came to an end. Everyone was conscious of the international price reality.
Mr Fenech said that both the price stability agreements and the FAIR pricing agreements in retailing were limited to six months and their intention had been to ensure a smooth changeover.
This had been achieved and no one in Malta wanted price freezes now that the voluntary period of the agreements was over.
The minister said that the euro observatory and the price watch structure would remain in place.
"If we see price increases that are exorbitant and unjustified, we will continue to investigate as we have done in the past to ensure a fair deal to consumers."
Mr Farrugia said that prices were regulated by the market and it was in the interest of employers that prices remained stable because inflation would be reflected in the cost of living adjustment, triggering off higher wage increases and costs, ultimately harming employers.
But, on the other hand, one could not deny the international inflationary pressure which could affect the prices of many products consumed by the Maltese.