The right attitude

Last week marked another important milestone in the history of the European Union. Reports issued by the Commission and the European Central Bank gave the green light to Slovakia to join the eurozone. This is a very important achievement not only for Slovakia, which will become the first ex-communist country to join this important economic group, but even more for the whole European Union. This is a certificate of how the members of this Union are succeeding in achieving the goals set by the masterminds behind the founding of this organisation, that is to forge closer cooperation and to work towards common wealth.

In a world that is constantly evolving and where new challenges crop up every day, it is vital for all the European countries to cooperate and the euro is indeed a very important tool to enable them to compete with other emerging markets. Since its introduction, the euro has become the second largest currency used in the world, just behind the dollar and ahead of the yen. More and more businesses in countries outside the eurozone are using the common European currency in their financial transactions. One may say that its growth has been one of the fastest of any currency, ever. The introduction of this currency has relieved businesses from a mountain of red tape and gave them the opportunity to deploy their resources in more useful areas.

All this besides the fact that there is no risk of losing out due to changes in currency rates. It has also boosted transparency, which will make it easy to compare prices across national frontiers. This will enhance competition, bring down costs and prices and improve efficiency. It will also cut transaction costs, in particular as a result of the elimination of foreign exchange commissions. This will encourage trade and cross-border investment flows.

It will also enable lower interest rates in individual countries in view of the elimination of foreign exchange risk premiums. This will in turn reduce financing costs and stimulate investment and output.

The development of larger and more liquid debt and stock markets across the eurozone will create a vast new pool of capital for companies, thus giving a further stimulus to investment and, more importantly, there will be tighter fiscal discipline on the member countries within the framework of the Stability and Growth Pact and monetary discipline exercised by the European Central Bank. These should ease inflationary expectations and produce a more stable financial environment in the eurozone.

The reports by the Commission and the European Central Bank also commented on the stability in prices over the last 12 months and it is very satisfying to see that Malta tops this list with an inflation rate of only 1.5 per cent. It is a positive certificate that comes just five months after we introduced the European currency. Many of the countries that adopted the euro experienced negative trends in the first months but this report shows that the opposite happened in Malta. I believe that we have been able to learn from the mistakes made by others. Furthermore, we have all shown maturity in dealing with the changeover and this has paid off. Pity that the Labour Party still thinks that the introduction of the euro was untimely.

The process to meet the Maastricht criteria was a very challenging one, a programme that required a strict regime to ensure we attain the required standards. With that behind us, we can now concentrate to consolidate our position within the European economic market and focus on attracting potential investors not only from Europe but also from nearby third countries. Our strategic position in the Mediterranean should help us in achieving this.

This dimension is being given a lot of importance by the European leaders especially French President Nicolas Sarkozy who is keen to establish a stronger Mediterranean Union. From this we stand to gain but we have to be ready to grasp all the opportunities that come our way.

All this may be overwhelming but if one takes a quick look down memory lane to see what our country has achieved over these last 20 years it is easy to understand that, with a serious programme and a clear vision, we can achieve much more in the coming years. It is important to believe in our potential and to have faith in one's ability. The Nationalist Party in government has always taken the right attitude in doing things and thus achieved the success we are basking in now. So I must agree with Winston Churchill when he said: "Attitude is a little thing that makes a big difference".

Mr Casa is a Nationalist member of the European Parliament.

david.casa@europarl.europa.eu, www.davidcasa.eu