'It is the fruit of years of hard work, a firm commitment to sound economic policies and bold reform' - Barroso
Malta's feat in defying the odds and critical naysayers to join the eurozone just three-and-a-half years into EU membership was unanimously hailed by European leaders yesterday.
Led by European Commission President José Manuel Barroso, one leader after another acclaimed Malta's achievement, which they said had set a remarkable example through its smooth changeover.
Mr Barroso praised the island for moving so swiftly to the heart of European integration, something few had expected could happen so quickly.
"Just four years ago, Malta was still preparing for EU membership. Who could have imagined that this country would place itself confidently at the heart of Europe so soon after accession?
"Such a feat didn't happen by itself... It is the fruit of years of hard work, a firm commitment to sound economic policies and bold reform," he said, speaking at the end of the memorable Euro Changeover Concert at the Mediterranean Conference Centre in Valletta in which the island showed off its two prized operatic assets, tenor Joseph Calleja and soprano Miriam Gauci.
Mr Barroso praised Malta's ambitious plans for the practical aspects of the changeover, adding that he was particularly struck by its commitment to explain and "train virtually all retailers in Malta on a one-to-one basis".
Earlier at a joint press conference with Prime Minister Lawrence Gonzi at Auberge de Castille in Valletta, Mr Barroso said that through "intelligent reforms" Malta had succeeded in making great strides economically, reaching its targets, and even joining the Schengen area.
"The euro is there to make the life of citizens easier. It is more than a very strong, credible currency, it is a powerful symbol of our European project," he said.
Dr Gonzi thanked Mr Barroso for his support and guidance throughout the past two years to help Malta achieve a smooth changeover.
"We have always maintained that Europe is about citizens, about lives, our jobs, and our standard of living," he said.
Mr Barroso said it was impressive how the euro had become such a strong currency in the relatively short time it had been in circulation. However, he noted this was causing concerns in some quarters and the issue was being looked at closely by the European Central Bank, which he said he fully respected.
"Despite this, it is not appropriate to blame the euro for problems. If you look at German exports to areas outside the EU, it is a great achievement against a strong euro. Of course, there is the capacity of different economies to adapt and some may be feeling the pressure more than others," he said.
Dr Gonzi pointed out that Malta, as the smallest member state which was sometimes deemed as "a laboratory for experiments", had seen an impressive turnaround to its economy.
"Our unemployment rate is below four per cent and we have a real GDP growth rate of four per cent. Joining the eurozone has been the best step forward for our economy," he stressed.
These great achievements, attained in such a short span of time, were extolled by all the leaders who spoke during yesterday's official ceremony at the MCC.
Dr Gonzi beamed with an inner satisfaction, admitting that this journey had required courage and determination.
"We are grateful to all of you who believed in our vision, who supported us, who understood our tough choices. The Maltese people worked hard through the road less travelled to get where we are today," he said, during the event, broadcast live on TVM.
"We are today celebrating a nation that is not afraid to be ambitious in what it sets out to achieve... we are celebrating a new journey."
Dr Gonzi recognised that there are challenges ahead, whether it means being assailed by international competitive pressures or the turmoil resulting from increasing commodity prices, but he said Malta was looking ahead.
"We are outlining an ambitious vision and strategy for our country that builds on excellence in a number of clearly identifiable sectors where we feel we have a comparative advantage," he said.
European Central Bank president Jean-Claude Trichet also spoke highly of Malta's success and commended the Central Bank of Malta's important contribution.
"Not only did Malta perform exceptionally well in its convergence process to the euro area, but also the cash changeover was exemplary so far," he said.
Italian Prime Minister Romano Prodi lauded the Maltese authorities for succeeding in their endeavours to join the eurozone in an "extremely short space of time", achieved through prudent monetary policies.
Similar comments were made by European Parliament vice-president Mario Mauro, who expressed confidence that unjustified price increases would be prevented because Malta had an exemplary information campaign.
Slovenian Prime Minister Janez Jan‘a acknowledged the demanding struggle Dr Gonzi had faced in pursuing the course to the euro.
"I extend my sincere congratulations to you Dr Gonzi. Frank Lloyd Wright once said: 'The thing always happens that you really believe in; and the belief in a thing makes it happen.' The path to monetary union was also the path to a goal worth achieving," he said.
Luxembourg Prime Minister Jean Claude Juncker went a step further to say that Malta's heroism and devotion in the past was still alive today.
"The successful introduction of the euro in Malta provides us with the opportunity to salute again the bravery and dedication of the Maltese people and to proudly affirm our common pledge to prosperity... in an integrated Europe."
Parliamentary Secretary Tonio Fenech, Central Bank governor Michael Bonello, and Slovakian Prime Minister Robert Fico also spoke during yesterday's event.
Now that the fanfare and celebrations are over, the work beings. "Malta has every reason to celebrate, but joining the euro is just the start of the process, not the end. Tomorrow we must get back to work," Mr Barroso said.