It was interesting to read that in Malta they are about to introduce pricing both in lira and in euro as part of the preparation for the adoption of the euro in the near future.

Permit me to think aloud. If the government does not enforce the banks to stop using a buying and selling rate immediately and also stop them charging a commission for the exchange of euro notes, the cost of living will go up with the introduction of double pricing.

Shopkeepers who know that they must tag their goods in both the lira and euro will be tempted to not just simply convert the Lm to the euro at the fixed ERM-II rate of 0.4293, but to do so at the buying rate published by the banks and, in addition, add the commission charged by the banks on the euro notes exchange. Surely they would not want to suffer “losses” if a customer wants to pay in euros (and we have many tourists coming from the eurozone).

They would then find it hard to readjust the prices downwards after the official introduction of the euro, knowing full well that the public is accustomed to the displayed euro prices.

This is a hidden inflation in the cost of living, about which many citizens of other EU countries complained when the euro was introduced in their country.

Vincent Mercieca

San Gwann