Once the euro is introduced in Malta, the price of several items will increase, thus increasing the cost of living, Labour Leader Alfred Sant said yesterday.
Speaking in Ta’ Qali, Dr Sant criticised Prime Minister Lawrence Gonzi for saying that the introduction of the euro will not increase prices, when it is obvious that they will.
Dr Sant said the
National Euro Changeover Committee has set the price of the euro at 42c93.
He said a number of shops are already using the dual pricing system and this is showing that there will be an increase in the cost of living once the euro is introduced.
The Labour Leader said that a café bar in Valletta charged 90c for two espresso lungo, which is equivalent to E2.2.
But when one had to calculate the price of these two coffees with the rate set by the changeover committee, the price of the two coffees would be 94c46. This means that with the new single European currency, two espresso lungo in Malta would cost five per cent more than we are used to pay in the Maltese currency.
Dr Sant mentioned a similar example with clothes purchased from Gozo. He said a skirt, a jacket and a pair of shorts cost Lm41.92 and with the dual pricing, the shop owner asked for E105. With the rate established by the government, the price one would have had to pay in Maltese currently would have been Lm45.07 which is a 7.5 per cent increase over the price in the Maltese currency.
Dr Sant mentioned another example involving the purchase of electronic equipment for Lm61.67 or E150.42. But the price in euro, which the shop owner was asking for was equivalent to Lm64.57 or 4.7 per cent more.
He said the dual pricing, which is due to start in January 2007, will bring about a lot of uncertainly and, above all, an increase in the cost of living.
Dr Sant said the Labour Party agrees with the introduction of the euro in Malta but does not agree with the choice of the date of introduction because for the single European currency to be introduced, the country’s economy cannot be stagnant like the Maltese economy.
The Labour Leader said the government is paralysed and the country really needed a change in leadership. He said the Maltese were fed up of this government and needed a change.
On the issue of low cost airlines, Dr Sant said the government did not take any decision on whether it wanted these airlines to start operating to and from Malta.
Dr Sant said the MLP wants to give Malta the change it needs. He said the party is preparing a comprehensive plan with realistic targets. He appealed to the Maltese workers to attend the demonstration in Valletta today to mark Worker’s Day.