The Euro Adoption Act comes at the right time for the country as our economic basis is sound, Parliamentary Secretary at the Finance Ministry Tonio Fenech said yesterday, adding that we must have the proper legislative framework for the eventual adoption of the single currency.

Speaking in Parliament during the winding up of the bill, Mr Fenech said that the internationally-renowned credit rating agency Moody’s had upgraded Malta’s rating from stable to positive. He said that this demonstrates that our credit strengths and growth rates are on the move, all factors that are contributing to a smooth entry into the euro-zone.

Mr Fenech said that contrary to what the opposition was stating, there would be negligible effect on the financial services sector after the adoption of the euro. He said that the Euro Adoption Act was being passed so that the entire legal framework would be in place and that we would be prepared for the conversion to the single currency.

Parliamentary Secretary for Justice Carmelo Mifsud Bonnici said that the conversion to the euro was an important step for our country as this would mean no more exchange risks and the curbing of inflation.

Dr Mifsud Bonnici said that Malta was well poised to join the euro after having entered into a vast common market of 500 million people. He said that the euro creates a level playing field and increases trading opportunities, apart from the great political advantages of a common currency.

Dr Mifsud Bonnici said that with the euro, Malta would eliminate all sorts of currency instability once and for all. He said the timing of our entry into ERM II is good as it enables us to begin making the most out of the advantages of joining this mechanism. He pointed out that many people feared that the Maltese currency would depreciate against the euro after the changeover but this would not be the case.

Parliamentary Secretary for the Self-Employed Edwin Vassallo said that it was the right time to implement the Euro Adoption Act as this would facilitate the changeover process. He said that we need the right process to eliminate uncertainty and that this legal framework looked to achieving that aim.

Mr Vassallo said that there should be a total war against price abuse, adding that the Euro Adoption Act would help considerably in halting such abuse. He said that the government was right in taking a decision instead of creating uncertainty by dithering on the target date, and this would have an effect on the stability and value of the Maltese lira.

The parliamentary secretary said that the economy was clearly on the mend with the numbers of gainfully occupied people as well as that of new business licences, rising substantially. He said that all these results including recently quoted business perceptions are showing that the government was absolutely spot-on in its decision to adopt the single currency.