On Tuesday, the Central Bank of Malta hosted a public lecture with the theme ‘Ten years in Economic and Monetary Union – Malta’s experience’.

The lecture was introduced by Aaron G. Grech, the bank’s chief economist. Rita Schembri, head of the Economic Analysis Department, recalled many considerations leading to Malta’s adoption of the euro in 2008 and the factors that contributed to a smooth integration in the euro area.

A long history of investment and trading arrangements with euro area countries, the Association Agreement with the European Community signed on December 5, 1970 and which came into force on April 1, 1971 and a positive experience with a fixed exchange rate regime were essential elements in this regard, as was the high degree of economic convergence already achieved in the run-up to euro adoption. Ms Schembri said that the single currency helped engender an environment conducive to growth and prosperity, not only through a significant reduction in transaction costs and enhanced visibility in international markets, but also by way of policy discipline in the EU’s economic surveillance framework.

She added that Malta’s experience suggests that full participation in the Economic and Monetary Union is an enabling factor for economic growth. However, in Malta’s case, the absence of major financial and fiscal shocks that characterised several other countries in the euro area, as well as structural reforms.

This event was the third in a series of public lectures in economics and finance being hosted by the bank to commemorate its 50th anniversary.