The last word

Akli Hadid discusses Malta's adoption of the Euro in CafeBabel:

..Three years later, and the two Mediterranean island nations have quickly adapted to Europe’s economic criteria, with no major setbacks. But they await endorsement from European finance ministers on 10 July, in a meeting which will also fix the final conversion rates for their respective currencies. What exactly is this criteria; will their Eurozone entry impact on the EU’s economy - and do the Maltese and Cypriots get the last word?

In order for states to adopt the Euro, they have to meet the 'Convergence Criteria' - also known as the 'Maastricht Criteria'. Technically, it means that EU member states enter the third stage of the European Economic and Monetary Union to adopt the Euro. There are four main criteria: an inflation rate that should not exceed 1.5% of the three best performing states in the EU, government debt to GDP that must not exceed 60%, stable exchange rates and finally, long-term interest rates that should not exceed the three best performing states by 2%.

There was one requirement that Malta and Cyprus did not meet however - the public deficit rate. Malta’s government debt to GDP ratio is beyond 60%, standing at 66.5% last year, as well as Cyprus who had a ratio of 65.3%. In Cyprus’ case, the ratio is expected to fall at 61.5% this year, and Malta at 65.9%. There are some who are against giving up their old currencies however. Charles Mangion, Malta's Labour party deputy leader for parliamentary affairs, said that the convergence report 'means that there was no progress in the social situation of Maltese families since the year 2000....