The Malta Independent 4 August 2026, Tuesday
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Euro Is a point of departure – PM

Malta Independent Wednesday, 23 May 2007, 00:00 Last update: about 20 years ago

Prime Minister Dr Lawrence Gonzi on Monday summarised the process undertaken towards successfully reaching the criteria of the euro convergence report. Commenting on the advantages that Malta will benefit when joining the eurozone in a ministerial statement in Parliament, Dr Gonzi said that the euro is a point of departure and not one of arrival. Dr Gonzi then presented to Parliament a copy of the convergence report compiled by the European Commission.

Replying to questions asked by opposition Foreign Affairs spokesman Leo Brincat, Parliamentary Secretary Tonio Fenech said that the Labour Party will be accepting the euro currency “with a grudge”. Mr Brincat asked whether it is true that there was a price increase in certain products in the services sector.

Mr Fenech said that euro helpline 154 has been a success in investigating complaints of price increases. The average response rate for a claim to be treated is that of three days from when an abuse has allegedly taken place.

Commenting on issues brought up by Nationalist MP Mario Galea, Mr Fenech said that the FAIR scheme has been a positive one and that people are noticing the stickers showing that such entrepreneurs are involved in the FAIR scheme. Nationalist MP Jeffrey Pullicino Orlando asked what has been the effect of the rise in oil prices on the convergence criteria towards joining the euro. Mr Fenech responded that the increase in oil prices had an impact in our economy and the surcharge had to be introduced.

Nationalist MP David Agius asked what still needs to be done and what the next steps will be in order to ensure that the people are well-informed and educated. Mr Agius asked what is going to happen to vulnerable groups such as children and aged persons in particular. Mr Fenech replied that from studies that are being carried out, it seems that elderly persons do not fear the adoption of the euro. Information meetings are being carried out at daycare centres and other places in order to better educate the people towards such an introduction.

Replying to Labour Party deputy leader Charles Mangion, Mr Fenech said that he believed that we are capable of making the change that does not bring about inflation. Closing the debate, the Prime Minister said that the results obtained in last Wednesday’s convergence report are “credible and sustainable”. The results are sustainable for the months and years still to come. Dr Gonzi thanked all those involved, in particular the National Euro Changeover Committee for “doing a very, very good job”.

The Maltese Citizenship Act amendment was the next item on the agenda. Deputy Prime Minister Tonio Borg said that the object of this bill is to grant Maltese citizenship by registration to second and subsequent generations of persons of Maltese descent. Up till 1989, it was not possible for a person to be a citizen of Malta and of another country simultaneously.

One could either be a Maltese or else a foreigner. The only exception was that people, upon reaching 18 years of age, could renounce to the foreign citizenship and if they did not renounce to such a citizenship they would lose the Maltese citizenship. Dr Borg mentioned that in 1989 the Nationalist government introduced an exception to this rule. Maltese persons who had acquired a citizenship of another country and thus lost the Maltese citizenship were given the right to have two citizenships simultaneously. A number of criteria had to be established such as proving that one has emigrated and has lived for six years out of Malta.

A second legislative reform was brought about in 2000. Double citizenship became the rule and not the exception. The reform concerned the first generation of Maltese born abroad. Every person of Maltese descent who was born with a Maltese citizenship but had lost it in order to acquire another citizenship could obtain back the Maltese citizenship. Those persons born outside Malta from a Maltese parent between 1964 and 1989 were given the right to become Maltese without even having to come to Malta.

The amendment that is being proposed will not give second and subsequent generations of persons of Maltese descent the right to become Maltese at birth but the right is being given through registration. The second change regards the anomaly that exists today. Until 1989, those persons who were born outside Malta could only acquire Maltese citizenship at birth if their father was Maltese and was born in Malta. The anomaly is that those born after Independence could become Maltese without even having to come to Malta while those born before Independence had to come to Malta.

Opposition Spokesman for Home Affairs Gavin Gulia said that the opposition favoured such an amendment. There is a strong community of Maltese people who have emigrated, have instilled Maltese traditions and have given birth to Maltese persons. The concept of citizenship is becoming more liberalised as time goes on. Dr Gulia remarked that the Labour Party has not been only reactive but also proactive. For instance, reforms to the Maltese Citizenship Act in 2000 were also inspired by a white paper piloted by the Labour party between 1996 and 1998.

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