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 2005 Malta 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 Sector               The Commercial Sector, importers, traders, industry, hoteliers and tourism related services etc.  

Consumer Affairs          Consumer groups, unions, pensioners, representatives of
& the General Public      vulnerable groups  

Financial Sector             Banks 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.  
 

DOI – 13.06.2005