Joining the European currency

The decision by Malta (along with Latvia and Cyprus) to take a step closer to joining the Euro, the European common currency, has been noticed by the international media. From Bloomberg to Gulf news, it was reported that Malta joined the exchange-rate mechanism that requires each country to keep its currency within 15 percent of a central rate to the Euro for two years without a devaluation. From Gulf Daily News:

Malta hopes to switch its currency from the lira to the euro in 2008, Prime Minister Lawrence Gonzi said in Valletta yesterday. The European Union said on Friday that the Mediterranean archipelago would enter the European Exchange Mechanism (ERM-2) tomorrow, with Cyprus and Latvia, as a first step to the planned adoption of the single European currency. Gonzi told reporters the decision by the EU to accept Malta into ERM-2 was a vote of confidence that its economic policy was bearing results..

Malta's Central Bank governor Michael Bonello said the decision to join ERM-2 was taken following extensive studies by the bank. "We have to continue moving according to the Covergence Plan so that Malta will take the advantages and move towards the EU average by 2007," said Bonello. "We have to meet our financial targets, lower production costs, fix wage increases to productivity and cut beaurocracy in government administration," he said.
The government will introduce a dual-pricing system with values in Maltese lira and in euro.

The Euro decision - Malta Independent on Sunday

Decisjoni riskjuza aktar milli ta' kuragg - It-Torca

Malta celebrates first year as European Union member