Malta today faces the final hurdle in its bid to adopt the euro as the European Union’s economy and finance ministers are set to deliver their last endorsement for Malta to join Europe’s single currency on 1 January by setting the final exchange rate between the euro and the Maltese lira.
The endorsement can, however, be expected to be little more than cosmetic, as Malta’s go-ahead to hold its E-Day in less than six months’ time has been etched in stone by consecutive nods of approval from the ministers, the European Commission, the European Central Bank, the European Parliament and finally by the European Council last month.
What remains to be seen, however, will be the final and irrevocable exchange rate to be set between the euro and the Maltese lira. The rate had been set throughout the two-year duration of the so-called Exchange Rate Mechanism II, one the Maastricht Criteria’s prerequisites for euro adoption, at one euro to Lm0.4293.
While no big exchange rate surprises are expected, as the ERM rates have generally been upheld when other states’ final euro exchange rates were established, all eyes will be on the setting of the final rate at which the Maltese liri will be exchanged at the beginning of next year.
Today’s Economic and Finance Ministers Council (ECOFIN), at which Malta will be represented by Prime Minister Lawrence Gonzi in his joint capacity as finance minister, is to convene at 10am.
In addition to economy and finance ministers, the meeting will also be attended by Economic and Monetary Affairs Commissioner Joaquín Almunia, European Central Bank Governor Jean-Claude Trichet and French President Nicolas Sarkozy.
Dr Gonzi will be accompanied by Parliamentary Secretary in the Finance Ministry Tonio Fenech, Malta’s Permanent Representative to the EU Richard Cachia Caruana, Finance Ministry Permanent Secretary Alfred Camilleri and Central Bank Governor Michael C. Bonello.
Other items on the agenda include a discussion on reforms of the International Monetary Fund, the work programme of the new Portuguese EU presidency, the public finances of the Economic and Monetary Union and the governance and funding of the International Accounting Standards Board and the International Accounting Standards Committee Foundation.