Implications of the euro changeover in Malta

Abstract

The introduction of the single currency has already been experienced by twelve EU Member States. Despite this precedent, Malta's adoption of the euro involves significant changes from the first experience. Whereas all first-wave countries had a transition period, it seems that a big bang changeover for a second or later wave is inevitable. Therefore, it is very likely that Malta would have to introduce scriptural and cash euro simultaneously. Against this scenario, this dissertation analyses the preparations required for Malta's adoption of the euro. It outlines what the Government, particularly the Ministry of Finance, and the Central Bank of Malta, would have to do in order to ensure a smooth and rapid euro changeover. It describes how the euro changeover would ideally be implemented and recommends courses of action that some sectors and organisations should adopt during the changeover process. The most important and challenging factor of the euro changeover for the Government and the Central Bank of Malta is to attain public confidence in the new currency. Consequently, aspects including continuity of contract, redenomination, conversion, rounding rules, consumer protection, communication and information campaigns are dealt with in detail.