Joint
Press Conference by the Ministry of Finance and Central Bank of Malta
- 13
June 2005
Euro
change over implementation and co-ordinating structures
On the 2 May 2005Malta joined the ERM II mechanism with 2008 being the
earliest possible date for adoption of the Euro.
The government’s
decision has been commended by the Commission, ECB, the IMF and
reputable international credit rating agencies such as Standards and
Poor.
The government is
determined to ensure that Malta joins the euro area without unnecessary delay; we
recognise the benefits of using one of the world’s major currencies
and of anchoring to the policies of a stable economic area such as the
euro area. We believe that the euro will contribute to the country’s
competitiveness in the face of the intensifying challenges of
globalization particularly in the financial services sector.
Today following a
number of discussions with the Central Bank, the Government is today in
a position to announce the structure that will co-ordinate the change
over implementation.Two
Committees will be set up.
A Steering Committee for the Euro Adoption is
being set up.This Committee
will report to Cabinet and its role is to provide strategic direction
and to monitor the level of progress and preparation of the Government
Sector and the Economy during the changeover phase.
This will be headed by
the Parliamentary Secretary within the Ministry of Finance the Hon.
Tonio Fenech, and as members will include the Governor of the Central
Bank, the Head of the Civil Service and the Chairperson of the National
Euro Changeover Committee.
Reporting to the
Steering Committee a National
Euro Changeover Committee is also being set up to co-ordinate all
the national efforts that are required to have a successful
implementation.This
Committee will be chaired by Mr. Joseph F X Zahra, a well established
personality, particularly in the Financial Sector, both locally and
abroad.A biography of Mr.
Joseph F X Zahra follows.
The National Euro
Changeover Committee will be required:-
To formulate and implement a
specific euro changeover strategic plan to handle all aspects
pertaining to the final adoption of the euro.
To coordinate all matters related
to the changeover, including the information campaign, private and
public sector technical readiness including information and
accounting systems, cash handling and vending machines, pricing,
currency replacement and other relevant aspects.
The NECC will also
participate in the Public Administration Network, which has been
established by the EU Commission to enable representatives responsible
for the euro changeover in the new member states to exchange views and
develop common approaches.
The NECC will embark on
a nation wide consultation process with all stakeholders both within the
public and private sector.These
will include the constituted bodies representing the business community,
unions, the financial sector, consumer organisations, the legal and
professional sectors and other interested parties.
The adoption of the
Euro is no easy task, numerous stakeholders come into play and to ensure
the smooth running of the process, with the least impact on the economy
during the change-over phase an Action Plan, which includes a Changeover
Communication Strategy, will need to be drawn up and effectively
implemented.
It is recognised that
from experience of the first wave of euro area Member States, a timely
and appropriate information campaign which focuses on both business and
the general public would be critical for the success of Malta’s euro changeover implementation.
To assist it in it working the NECC, will have a Euro
Changeover Secretariat within the Ministry of Finance, and a number
of sub-committees that will focus on a number of critical aspects of the
implementation strategy, and in which the various interested
stakeholders will be involved.
The sub-committees will
be headed by a co-ordinator that will represent that committee in the
National Euro Changeover Committee.The other members on the NECC will therefore be formally
appointed in due course after consultation has taken place with the
various stake-holders.
However the following
sectors and areas will need to be covered:-
Public
Finances National budget,
national statistics, treasury, fiscal and revenue collection systems
Public Sector
All other public sector
departments, entities and systems that are effected by the change over
Education
Sector Primary,
secondary and tertiary whether public or private institutions
Private
SectorThe Commercial Sector, importers, traders, industry, hoteliers
and tourism related services etc.
Consumer Affairs Consumer groups, unions, pensioners, representatives of
& the General Publicvulnerable
groups
Financial
SectorBanks and
other Financial Institutions, Stock Exchange and brokers, etc
Legal Affairs Review of the legislation that requires change etc.
Twinning programme for the preparation of a
communication strategy on the Euro change over between Ireland, Malta and Cyprus
The aim of the
programme is to get information, advice and draw from the experiences of
Ireland on the Euro Changeover Communication Campaign, so as
to help Malta and Cyprus on their formulation of an effective Communications
Strategy.
The campaign will be
directed towards a number of target groups, in terms of the message and
information would need to be passed, when and how this can be done in
the most effective manner.Special
emphasis will be given to consumers, old aged people, students and young
people, the vulnerable groups.
For a smooth
implementation effective communication is required through targeted
initiatives towards the business community and employer organisations,
unions, journalists, opinion leaders and others.
The programme will
involve a number of exchange visits, over a period of 6 months. The
estimated cost of the programme will be around Euro 50,000, of which
Euro 35,000 will be financed by the European Commission.