A recent survey has revealed that one of the main concerns that remain high on the agenda of the general public with regards to our imminent euro adoption is the fear of possible euro-induced price increases. No matter how many times one reiterates the fact that the euro adoption is a change in currency and not a change in prices, concern remains at a relatively high level, albeit among the lowest when compared to our European counterparts.

While this scenario can perhaps be easily understood given the unfortunate increases in commodity prices experienced recently, it is of prime importance that the issue is addressed from different angles. One would do well to bear in mind that international price increase of cereals and dairy products has been experienced on both the European and international levels. Such price increases are inevitably “imported” into the Maltese economy due to the fact that most products sold locally must first be bought from another European or non-European country.

However, one aspect that perhaps has not been discussed often enough is the fact that while a number of initiatives and mechanisms have been put into place to ensure adequate consumer protection throughout the euro changeover process, consumers themselves may occasionally need to be reminded that a certain element of “responsibility” should also be borne by the general public, if all such protection initiatives are to be expected to enjoy a satisfactory measure of success.

Protection is in place….

The above statement in no way means to say that the consumer “alone” should be responsible for ensuring that euro adoption does not lead to unjustified prices hikes. On the contrary – a number of initiatives have been put into place by the NECC, guided by the feedback and requests put forward by its own Consumer Sub Committee, whereby consumers are guaranteed legal protection throughout the changeover process in the form of specific legislation ensuring correct rounding and smoothing of prices.

Additionally, it must be stated that such legislation is just the tip of the iceberg, for what is the point in having a law if the implementation of its provisions is not adequately monitored and implemented? Any consumer is right to question the mechanisms put in place to ensure that effective monitoring is in fact taking place. In actual fact, the answer to this question can honestly be that the NECC is most definitely in a position to put its money where its mouth is.

With the specific aim of ensuring that consumers are not only adequately prepared for euro adoption, but also to ascertain that no negative impact is experienced because of unjustified “euro-induced” price increases, the government established the Euro Observatory. This unit within the Finance Ministry is made up of over 70 euro assistants who have, to date, conducted over 38,000 visits to retail outlets across Malta and Gozo.

The government has even gone one step further than mandatory dual display and the FAIR initiative and has reached ground breaking Price Stability Agreements with 15 major importers. Furthermore, a new Legal Notice has recently been published, whereby any smoothing occurring during the euro adoption process must be done “in favour” of the consumer. So with all these initiatives in place, what remains to be done?

Addressing consumer

mentality

While the main responsibility of ensuring proper competition and adherence to legal obligations undoubtedly falls on local and, to a lesser extent, regional and international authorities, the role of each individual consumer in bringing about a smooth changeover process is, many a time, not given enough importance.

The key words in this regard are “education” and “initiative”. Consumers need to be equipped with enough information and educational opportunities to understand exactly what is going on, why it is happening and more importantly, how it affects them. In this regard, it is imperative that any person who feels that they have not been provided with enough euro-related educational opportunities must take the initiative and seek assistance.

However, this is not an end in itself. Once a certain level of awareness and knowledge has been achieved, it is essential that this is put into practice. For example – perceived price increases should be questioned, but one must always endeavour to put them into the context of recent economic developments if a truthful answer is to be reached.

In addition to this, where one is of the opinion that a price increase is not justified, then it stands to reason that our societal duties are fulfilled by informing the relevant authorities – by simply calling Linja Ewro 154 – in order to ensure that adequate steps are taken to investigate and, if necessary, rectify the situation in question. This is not what may be termed as “passing the buck” but is rather a mentality of shared responsibility, which is a valuable asset to any progressive society.

At the end of the day, all stakeholders – consumers included – need to work towards “updating” their mentality towards one of burden sharing, education, initiative and responsibility so as to guarantee that not only are the benefits of euro adoption enjoyed to their full potential, but also to ensure that any potential disadvantages are minimised, if not altogether eliminated.

Phone Linja Ewro 154 or email us on [email protected] and bridge that psychological divide that may be keeping you from protecting your own interests. Working with the NECC and the Euro Observatory to assist us in our endeavours, will ultimately benefit all and sundry. The Euro Observatory is in full swing working towards ensuring a fair changeover for all. Education and information is abundant. Opportunities for proactive participation and responsibility sharing are available – take them.

Claire Azzopardi is an information officer with the National Euro Changeover Committee