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Karl Stagno-Navarra
European Central Bank Governor Jean-Claude Trichet will today echo the European Commission’s formal recommendation for Malta’s adoption of the Euro as it’s national currency as from January 1, 2008, and will also recommend keeping the established ERMII central parity rate of Lm0.429300 as the equivalent of EUR1.
The announcements to be made today from Brussels and Frankfurt are set to boost Prime Minister Lawrence Gonzi and his government who have braved the odds and drastically reduced the structural deficit to below three per cent of GDP, from a high of 10 per cent just three years ago.
Inflation has been controlled to levels under three per cent, and the debt level is also decreasing.
The much awaited convergence report will praise the economic performance results achieved by Malta particularly regarding the structural budget deficit that stood at 2.6 per cent of GDP as at the end of last year, and that is forecasted to drop further to approximately 2.1 per cent this year.
In Brussels, Economic and Monetary Affairs Commissioner Joaquin Almunia will address the international media shortly after a meeting by the College of Commissioners and announce the economic findings that make Malta and Cyprus eligible and recommendable for Euro adoption as from January 1, 2008.
Updated and amended draft copies of the Malta convergence report that has been circulating among sections of the media in Brussels show that the European Commission will praise the Maltese government’s handling of the Euro adoption process and achieving “more than satisfactory” results in satisfying all the necessary criteria.
The recommendation for Malta and Cyprus to join the Euro-Zone as from next January will be transmitted to all European Heads of Government who are to meet in Brussels next month under the Presidency of German Chancellor Angela Merkel.
While the ECB in Frankfurt will endorse this recommendation, another note will be transmitted to ECOFIN for approval by the Euro-Zone Finance Ministers who are scheduled to meet in Brussels in July under the new Portuguese Presidency of the EU.
The convergence report to be discussed and approved by the ECB board of governors in Frankfurt this morning will confirm the “remarkable progress” achieved by the Maltese government throughout these last three years where drastic and successful measures were taken for the benefit of the economy.
Prime Minister Lawrence Gonzi is expected to react to the positive news to be announced by Brussels and Frankfurt, and is expected to address the media in the evening together with Central Bank Governor Michael C. Bonello and Parliamentary Secretary Tonio Fenech.
Other press comments are to be made by the EU Commission Permanent Representation in Malta headed by Joanna Drake. |
