In a country with a small and open economy like ours, changeover to the euro will result in benefits for all. It will support our economic stability and facilitate trade relations with EU member states and the rest of the world.

In mid-2005, Malta joined the exchange rate mechanism ERM II, which is considered the “antechamber” of the eurozone area. There are three steps that have to be made before Malta acquires full membership of the ERM and so far it has taken two of them. The third step is to change over to the euro. The Maltese government targeted 1 January 2008 for the introduction of the euro and preparations started soon after the target date was set. The first move was the setting up of the NECC, the National Euro Changeover Committee.

This committee has the difficult challenge of implementing a smooth changeover to the euro. Its responsibility is to monitor all public and economic bodies, how the adoption of euro will affect day-to-day business and clearly explain what this step is all about.

The changeover from the Maltese lira to the euro will not bring any major economic changes, but transaction costs will reduce and the possible risks of endangering the Maltese lira as a small currency with a fixed exchange rate will disappear.

Malta’s accession to the Economic and Monetary Union will be a move forward and we will benefit. It will be easier to compare prices across eurozone countries and minimise the risks related to the exchange rate and sudden increases in interest rates.

The euro will make travelling more convenient and cut the costs of currency exchange for both individuals and businesses. Other less obvious advantages include, for example, lower interest rates on loans.

The adoption of the euro will result in smaller transaction costs, as the need for currency exchange will decrease. Experience shows that countries that adopted the euro in 2002 saved up to 0.2 per cent of GDP. Most of Malta’s trade is euro-based, which means it will be easier for companies to conduct business when the country joins the eurozone. The transition to the single currency will hedge the risk of adverse exchange rate movements and a stable monetary environment, in turn, will promote fast economic growth. Bearing all this in mind, the euro adoption is Malta’s natural step forward.

One has to ask some questions. Why is it that, following Labour’s U turn, there are no positive comments on the euro changeover? Following Dr Alfred Sant’s reply to the budget speech made by the Prime Minister, there was no surprise of another U-turn. The Opposition Leader knows that the government is doing well to fulfil all criteria to adopt the euro. This means that our country is achieving positive results and is on track to provide a better future for everyone.

So adopting the euro means benefits for all. Again, it will show that Prime Minister Lawrence Gonzi was right when he said judge his government on what is delivered and not on what is said. Joining the eurozone is not only Malta’s next step but will mark another election victory for a party that has always faced up to a challenge.

Noel Galea is a PN candidate in the 5th Electoral District.