PDA

View Full Version : Adoption of the Euro


PERICLES
1stMay2005, 02:28
National strategy on Euro adoption published by Dorian Cassar, di-ve news (dorcas@di-ve.com)

http://www.di-ve.com/image-jpeg.dyn?imageId=181507

Maltese lira tagged with Euro at 0.429300 fixed rate

VALLETTA, Malta (di-ve news) -- April 30 2005 -- 1810CET -- Prime Minister Lawrence Gonzi has confirmed the Commission's late night announcement of the acceptance of Malta into ERM II on Monday 02 May. Dr Gonzi said that all conditions requested by the Maastricht treaty are being positively reached and the EU has accepted Malta's application.

PM Gonzi was addressing a press conference on Saturday early afternoon together with the Governor of the Central Bank Michael Bonello and Parliamentary Secretary Tonio Fenech.

Dr Gonzi reminded that upon the signing of the adhesion treaty and the accession into the EU, Malta has obliged itself to adopt the Euro. The Prime Minister said that a unique European monetary symbol brings along a number of advantages that polishes Malta's competitiveness, even since we are already integrated in the European market systems.

Adding on to the advantages list, PM Gonzi included the abolishment of expenses resulting from currency exchange, a direct control on prices and also a positive effect on the nation's credit rating. All these advantages make Malta more attractive to foreign investment, added the Prime Minister.

Dr Gonzi remarked that in the following two years starting today, Malta must make sure to implement initiatives and measures that would eventually ease the transition to Euro. He mentioned exercises similar to a two-price labelling tag on every product and service offered, aimed at estranging fiscal abuses.

"The decision the government took was backed with professional economic advices from the Central Bank and we in no way tried to hurry the process", said the Prime Minister. He added that the government had discarded the advice of rushing-up things to catch-up with the first group to join ERM II in June 2004.

The Prime Minister expressed his satisfaction on the process of aligning with the Maastricht levels, which was also positively noted by the ECOFIN, who are continuously analysing the measures and targets during fiscal periods.

On the following two-year period in the ERM II, Dr Gonzi emphasised that full secrecy on the process will be kept, as duly directed by the European Union. "Any speculations in such a delicate process may damage our nation", he said.

Finally the Prime Minister announced the publishing of a National Strategy on Euro adoption that will also incorporate a "Euro Change-Over Committee" made up of government and Central Bank officials that will spread-up into a number of specific working groups.

Joining the second group into ERM II on Monday with Malta are Cyprus and Latvia.


http://www.di-ve.com/dive/portal/portal.jhtml?id=181505

PERICLES
1stMay2005, 02:28
Malta to join ERM II by Roberta Scerri, di-ve news (robsce@di-ve.com)

http://www.di-ve.com/image-jpeg.dyn?imageId=181471



BRUSSELS, Malta (di-ve news) -- April 30 2005 -- 1000CET - Malta will on Monday join the Exchange Rate Mechanism (ERM) II; a stepping stone which will lead the Maltese lira to switch to Euro in 2008.

The European Commission announced this late Friday night as "at the request of the Maltese authorities, the ministries of the Euro area member states of the EU, the President of the European Central Bank and the ministers and the central bank governors of Denmark, Estonia, Lithuania, Slovenia and Malta have decided, by mutual agreement following a common procedure involving the European Commission and after consultation of the Economic and Financial Committee, to include the Maltese Lira in the ERM II."

Following this statment, the Prime Minister Lawrence Gonzi together with the governor of the Central Bank of Malta, will give a press conference later today Saturday 30 April.


http://www.di-ve.com/dive/portal/portal.jhtml?id=181469

Cikku
1stMay2005, 10:15
Although the rate of 0.429300 is comparable to the actual rate on Friday, I still think that, considering Malta's present economic situation, the timing of joining the ERM II was BAD.
:confused:

Gladiator
2ndMay2005, 15:42
Although the rate of 0.429300 is comparable to the actual rate on Friday, I still think that, considering Malta's present economic situation, the timing of joining the ERM II was BAD.
:confused:

How so Cikku? A nation's currency value will not deterime the overall country's economic preformance. Unless the economy is overheating which causes inflation. Malta's present state of the economy is stagnate to say the least. And in this case Malta's Lira is artificially over valued.

Cikku
2ndMay2005, 18:59
How so Cikku? A nation's currency value will not deterime the overall country's economic preformance. Unless the economy is overheating which causes inflation. Malta's present state of the economy is stagnate to say the least. And in this case Malta's Lira is artificially over valued. - Originally posted by Gladiator

"A nation's currency value will not deterime the overall country's economic preformance." NO, it does not, but it is a major factor. Let me not give you the answer you seek, let more experts on the subject elaborate.

This (http://www.maltatoday.com.mt/2005/05/01/t3.html) is the initial reaction of four public figures in yesterday's edition of Malta To-Day.

And here (http://www.timesofmalta.com/core/article.php?id=185787) you can read what appeared in the Times of Malta this morning.

Gladiator
2ndMay2005, 23:19
Thanks for the links, Cikku, I read them all. However, Malta can no longer keep an overvalued Lira. To join the Euro now or in ten years times doesn't make any difference. It is better sooner than later.

Malta has to catch up on these economic fronts, because other basic economic changes never took place, which they should have had taken place long time ago.

Sadly someone or the previous administrations sat on their fat you know what...:mad: ?
I always beleived that the country missed a lot opportunities and wasted years in attracting big investments. Anyway it's beyond my power now.

PERICLES
2ndMay2005, 23:20
The current Times online poll deals with this issue.

Artist
1stJune2005, 07:15
Jekk il-gvern ta' Gonzu se jibqa' jkollu zbilanc fil-finanzi, mhux se jgib investiment barrani u t-turizmu se jkompli jonqos, f'dan il-pajjiz se jkun hawn dizastru.
Dawn il-fatturi u ohrajn jilghabu wrol importanti fuq l-effett tal-euro.