The government yesterday published the Euro Adoption Bill, which will pave the way for the introduction of the single currency in Malta.
As the date when the euro will be introduced in Malta draws closer, the bill, once enacted, will provide a legal basis that will regulate the changeover from the lira to the euro, including the price converted from one currency to the other in order to limit abuse.
It is expected that the changeover from the lira to the euro will take place on 1 January 2008.
The bill gives the Finance Minister the power to make regulations for facilitating the adoption of the euro.
This includes the period during which it will be mandatory to display prices both in euro and in Maltese lira and also the power to regulate the conversion of amounts appearing on invoices, receipts and statements into euros before the euro becomes the currency in Malta.
The bill lays down the imposition of fines, including daily fines for as long as the act or omission persists, in case of infringement of the provisions of the bill.
The fines which will be handed down vary between Lm300 and Lm1,500 and a daily fine of between Lm35 and Lm200. The trading or any other licence may be suspended if the infringement persists for a period of more than 15 days.
The bill also gives the Finance Minister the power to appoint one or more authorities in Malta to ensure compliance with the Euro Adoption Act. This entity or entities will be expected to investigate any infringement.
A few weeks ago, the changeover to the euro and the dual pricing period came under fire by Labour leader Alfred Sant, who said that once the euro is introduced into Malta, the price of several items will rise, thus increasing the cost of living. Dr Sant gave a few examples of shops that were already using dual pricing and that were charging more than they were supposed to.
The government reacted to these examples by saying that, once the Euro Adoption Act is enacted, this abuse will no longer be tolerated and action can be taken according to law.