Clayton Bartolo, Labour member of Parliament

Malta adopted the euro as its official currency on January 1, 2008, with the country opting for an approach which saw cash entering use on the same day that the euro officially became our country’s new currency.

At the time, there was no vote on whether the country wanted to adopt the euro as its currency. It must be noted however, that Malta, as a new member state, was obliged to adopt the euro. However, the timing of the introduction was decided by the government of the time, without people voicing their concern or otherwise to this decision. It was a decision which would undeniably be a determining factor for Malta’s economic scenario. A decision, which like any other decision had its pros and cons, and today with the benefit of hindsight, we can analyse them in detail.

One of the more obvious benefits has been the advantage facilitated by the euro for citizens travelling within the eurozone.

However, before adopting the euro, the government then had argued that by joining the eurozone, price stability and lower costs for businesses would be ensured. Time has proved this wrong, as people have found that prices were independent from the introduction of the single currency. The same can be said for businesses, as the euro did nothing to lower costs for businesses.

Our economy is out-performing nearly all other eurozone economies, including Germany

Price stability, however, did come from the present government’s policy of stabilising the price of gas and fuel for example, while the real lowering of costs emanated from the fact that the Labour government reduced water and electricity tariffs for all families and businesses by a significant margin.

Following the adoption of the euro, Malta’s interest rates started being determined by the European Central Bank (ECB), which interest rates are determined according to the needs of the eurozone and not according to the specific needs of each country. This means that as a country we have lost control over one of the most important tools for the management of our economy.

However, the euro is the second largest currency in the world, which in itself brings an element of stability to our economic system and the macro-economy within which our economy operates. Being a small and open economy, Malta had the opportunity to align its economic performance to the euro bloc and hence increase trade opportunities with the countries within this bloc. Through the adoption of the euro, Malta can boast a currency with a global position comparable to the dollar. The role of the euro in international trade, foreign exchange markets and reserves, increased significantly over time and continued to grow in importance. While this may not have a direct effect on people’s pockets, this has surely had a good effect on our economy and has provided Malta with more opportunities on a macro-economic level.

The euro has been Malta’s official currency for the past 10 years. To put this in perspective, teenagers today do not even remember the Maltese lira. While, as mentioned above, there were positive impacts in adopting the euro, it must be pointed out that the real positive results for our economy started pouring in during the last five years, when the Labour government started to implement what has proven to be a successful, economic strategy for Malta.

Today, our economy is out-performing nearly all other eurozone economies, including Germany, both in terms of economic growth as well as in job creation. The excellent economic results achieved during the past five years boil down to the economic roadmap, which the present government put in place. Joseph Muscat’s government has implemented a roadmap, which saw a complete turnaround of our economy, making it one of the top performers of the eurozone and the EU bloc, with the best times yet to come.

Mario de Marco, Finance opposition spokesman

In the period 1987 to 2013, governments led by the Nationalist Party reshaped if not revolutionised various important aspects of Maltese life. From the country’s ailing infrastructure to the lacking health and education systems, and from the radical overhaul of the country’s institutions including our tax system to Malta’s successful accession to EU membership, successive PN governments did not shy away from implementing major change programmes and preparing the country for the challenges that these would entail.

The changeover to the euro in 2008 was a monumental feat in its own right. However, it cannot and should not be seen as a sole and separate achievement. The introduction of the euro was the culmination of a series of planned and deep-rooted transformation programmes that were carefully put into action over the previous two decades.

The economic success enjoyed by our albeit small economy,is a definite testament of the advantages of the euro

Attention has to be drawn to the fact that there is currently an attempt at re-writing history, at throwing a masking veil over all these years and programmes of substantial change; an attempt that is being carried out by the very same people who in most of the cases objected and fought hard against these changes.

Luckily for Malta, for our businesses, for our economies, for our families, the voice of reason won throughout those transformative 25 years. Our country went through one silent revolution after another and we are still bearing the fruit of their effects today. They were visionary changes that saw our country completely changing from an inward-looking country into a thriving and respected member of a new globalised world, able to stand on its own two feet, and commanding attention as a serious and reputable country.

Some of the benefits of the euro are plainly obvious. It makes, for example, travel within the eurozone much easier. It takes away uncertainty in trading within the zone because it removes the possibility of currency fluctuations. For a small island state like Malta these two elements alone are of paramount importance and made an instant difference. But it would be wrong to judge the euro only on these two counts. The strength and importance of the euro is much broader: it is in how it is helping the European economy grow.

The euro is the tool that allows Europe not only to work together but to grow together. It is a tangible – perhaps the most tangible – representation of united Europe. United in good times and bad times. In good times, it has helped the European economy grow at a stronger pace. Studies bear this out clearly. There are some who would argue that the single currency removes the country’s sovereignty in deciding its own faith, and this is heard especially in dire times. Others argue that the euro is based on a one-size-fits-all approach that favours the larger countries. And of course there is more than an element of justification in these positions. But one has to consider the alternative.

The alternative to a single market is the erosion of Europe’s competitive edge. It is a Europe that will falter and fail economically resulting in social upheaval. In a way, the economic success enjoyed by our albeit small economy, is a definite testament of the advantages of the euro. The euro has made Malta a more viable business partner, thereby opening our economy to opportunities that were previously simply not available.

Throughout its short history, the euro was tested on several occasions. Perhaps the toughest test was during the 2008 financial and economic crisis and the fallout that followed, particularly the collapse of the Greek economy. Is it a perfect tool? Certainly not. Like all other systems it has its faults but it is our responsibility to work together as a Union to keep on improving this system to make sure it brings equal benefits to all members and to make sure that it serves us in all times.

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