On Tuesday, the European Union’s Economic and Finance Ministers Council gave the go-ahead for Malta to join the eurozone as from the established date of 1 January 2008, leaving the exchange rate between the euro and the Maltese lira where it has been for the last two years – at Lm0.4293 to the euro.

It was the last hurdle in a long and winding road that the government embarked upon soon after Malta became a member state of the European Union in May 2004. The switchover from the lira to the euro was the next natural step, and it took Malta just over three years to satisfy the criteria imposed by the EU to be able to be accepted in the eurozone.

It was not an easy ride towards achieving the target. Malta had to satisfy tough criteria established by the European Commission. The deficit was brought down from 10 per cent in 2003 to 2.6 per cent in just three years, while inflation was also lowered to 1.8 per cent for the 12 months leading up to March.

Both issues were a cause for concern for the government, but with good planning, which also meant sacrifices for each and every one of us, Malta made it through.

Government debt is still above the 60 per cent of Gross Domestic Product mark but, even here, there has been a steady improvement. In 2006, debt reached 66.5 per cent of GDP and this is expected to go down further to 64 per cent this year. The long-term interest rate stability as well as the stability of the exchange rate were also criteria that were met.

The road ahead is just as tough. Because the success or otherwise of the move – which, on the whole, was “imposed” on Malta as part of its commitments following its membership in the EU – will not be gauged now, but when the actual changeover takes place.

Again, it is not something that will have an impact right away. While, of course, the changeover will bring an immediate change in our day-to-day financial transaction at the grocer’s shop and elsewhere, the overall effect of the changeover will be felt in the following months and years.

Prime Minister Lawrence Gonzi was right to describe Tuesday’s event as a “greatly satisfying moment” for the whole country. The acceptance of Malta in the eurozone means that the country is on the right track and, once the switchover takes place, it will be in a better position than it is today.

So much so that credit rating agencies Moody and Standard and Poor’s were quick to upgrade their rating for Malta just one day after Ecofin gave the green light. Such ratings mean a lot to potential foreign entrepreneurs who are looking for opportunities of investment. Malta has done well in this regard over the past years, and the changeover to the euro will improve matters further.

The last half of this year will now be taken up with the last preparations for the actual changeover. The National Euro Changeover Committee has worked incessantly in this respect, creating awareness on the practical steps that have to be taken for a smooth transition to the euro. Its campaigns have covered all the aspects on what such a huge move will entail, and what remains is a final push.

A currency changeover always has a great impact on a country’s lifestyle as a whole and on an individual basis. And, as Dr Gonzi said, the bottom line is not the currency itself, but rather the fact that euro adoption will in the end “lead to more and better jobs for the Maltese people”.