During the last few days we have been hearing more and more about the euro. Not only has Slovenia taken up this currency officially, but in the years to come so will the other nine members which joined the European Union in May 2004. Malta seems to be in the next group, possibly to be joined by Cyprus. Rumania and Bulgaria, the latest new members of the Union, will follow suit.

As more and more countries join in, the euro will become stronger as it becomes the common monetary denominator for business in Europe and possibly elsewhere.

Now we are witnessing an unprecedented move. Syria has decided to trade in the euro and is putting the US dollar aside. This is no small event. It is significant because this move by the Syrians could well start a ripple-effect towards a greater use of the euro, instead of other currencies, by other countries who do substantial business with the EU.

In my opinion there are many factors which have brought about this move. For one, it is possible that the Middle Eastern countries are seeing and understanding the writing on the wall. Europe is nearer to their shores. More and more of their business is with European states and thus it pays them to do away with different currency fluctuations. In today’s world, the difference of a single percentage point could, on a large scale, make the difference between a profit-making and a money-losing operation. Since everybody wants to be a winner, there is no place for losers. Negative effects have to be minimised and if this means operating in a different currency, why not?

Furthermore, the US currency has become substantially weaker and is constantly fluctuating, causing further fluctuation and inflation in the costs of trading operations, potentially making life very difficult for importers and business operators. On the local level, the rate of exchange now stands at more than $3 to the Lm1.

This shift from the US dollar to the euro by Syria will certainly make many other countries think about their trading currency. An analysis of the motivation that sparked this move, both economic and political, might well induce them to question the path that they may have planned to take in the future. The Syrian move is certainly a plus for the euro and a positive certificate that things are on the move and in the right direction in the EU. As the currency grows in its stature, this will have a positive effect on European trade figures as well as on financial services operations.

In Malta, the projections for us to join the currency on 1 January 2008 seem to be on track. It can also be said that we are being cautiously positive. However the exercise will not stop as soon as the EU gives its go ahead. There must be an all round exercise to ascertain that this does not bring about inflation. Any rise in prices should reflect a real rise in cost rather than be the result of a play on numbers, calculated to land an unjust bonanza in somebody’s pocket.

The truth is that the vibes are positive notwithstanding the sceptics. I cannot understand how the party in opposition now claims to be in favour of the introduction of the euro and at the same time put up so many question marks on the matter. Are the MLP gurus convinced of the benefits or are they just paying lip service to the adoption of the euro?

Or have they had to come round to it simply because they have realised that, independently of what they say, the euro will become our currency in 11 months’ time? Is there confusion in their ranks or are they still hoping that an election will be held this year, and if they do win…

Enough space must be given to criticism and different ideas. But by now these should have fallen by the wayside and we should be living under an umbrella which sees all the political players moving towards one goal. There should not be two opposing teams in this game, but one unified front to assure a positive transition without negative effects. But then again, such a thing would be news here in Malta. This is in spite of the fact that the public in general, the unions, and the players in the business world seem to agree on the benefits to be reaped.

We must move ahead. Countries such as Montenegro and Kosovo, which are not even in the EU, have chosen to take up the European currency as their own and it has had a positive effect on their trade. Iceland, also outside of the EU, is also seriously considering such a move. Every national economy seems to agree that they have to do away with exchange fluctuations if they wish to compete, as this gives them an edge. And in the case of smaller economies this plays an even bigger part, since the smaller the economy, the more volatile it is.

From the Maltese perspective, things are starting to look better also due to other global factors. The price of oil is gradually coming back to acceptable levels. This should reflect itself positively on our economy and on our performance. It should also help to keep our inflation down. All this augurs well.

Tomorrow is another day. The Nationalist Party has taken up this challenge which is now developing into an opportunity. We can make it work. The euro should be here to stay.

Tony Abela is parliamentary secretary in the Office of the Prime Minister