Entering the euro area is a major step in our country’s development that reflects progress at the political, economic and social level. However, it is also in a sense the beginning of Malta’s fuller economic integration into the eurozone, said Tonio Fenech, parliamentary secretary in the Ministry of Finance yesterday.

Addressing the Vodafone Economic Forum, Mr Fenech spoke about the advantages of adopting the euro and the work that had been done before the European Commission finally gave Malta the go-ahead to adopt the single currency.

“We have always believed there are substantial benefits to be derived from joining the euro area. However, this was not to be achieved at all costs, as we wanted to raise the standard of living of our people and their quality of life. Euro adoption is a vital component of our plan to upgrade Malta to European standards,” he said.

However, he said, Malta, along with other euro area members, still needed to raise productivity levels and ensure faster progress towards key Lisbon Agenda objectives such as educational attainment and innovation.

Achieving nominal convergence and the adoption of the euro was only a component in a wider reform programme, as detailed in the National Reform Programme, and the annual pre-budget documents and subsequent budgets had translated the reform programme into the specific measures that had to be implemented in the following year.

The reform programme encompasses numerous measures and initiatives aimed at strengthening the economy’s physical infrastructure and the quality of its human capital, a more efficient delivery of support services by the public and private sectors and enhanced competition both in product and resource markets.

“While ensuring that we conduct our fiscal policy in line with the Stability and Growth Pact, continuing on the path outlined in the National Reform Programme is the only way we can increase the economy’s capacity to respond flexibly and competitively to new challenges and opportunities, and thus derive the full benefits of EMU (European Monetary Union). The Euro is only a tool – our vision is that by 2015 we will make Malta a media and ICT centre, a higher value added manufacturing and tourism industry and a financial services centre, where excellence in education and health also contribute directly to our economic growth and achieving our goal of making our country a better place for all,” he said.