|
I refer to your news item regarding my reply to a question asked by Mr Karm Farrugia at the Business Today business breakfast meeting. I must first thank the Business Today for inviting the National Euro Changeover Committee (NECC) to this meeting, thus giving us an opportunity to get feedback on the euro adoption process. I would like however to clarify one point made in the report.
The Central Parity Rate of 0.429300 to the euro established by the Government and the Central Bank of Malta upon Malta’s entry into the Exchange Rate Mechanism II (ERMII) on the 2 May 2005 is proving to be sustainable, it has improved Malta’ s competitiveness, and has contributed to a higher economic growth.
The unalterable and irrevocably fixed conversion rate between the Maltese Lira and the euro is established once the European Council gives the green light for Malta’s entry into the eurozone. This normally takes place at the end of the two-year ERM II following a positive assessment of Malta’s adherence to the Convergence Criteria by the European Commission and the European Central Bank. This report, which will need to be drawn up following a request by the Government of Malta, assesses the performance of a pre-in Member State against the convergence criteria. This is the reason why no one can at this point in time guarantee that the present Central Parity Rate will in fact be the irrevocably fixed conversion rate.
Joseph F.X. Zahra
Chairman, NECC
|
