Financial planning for the eurozone access by Maltese listed companies : an evaluation

Abstract

The objective of this study is to determine the extent of financial planning by Maltese listed companies for the eurozone access. Malta, currently a member state with a ‘derogation’, is expected to prepare and plan for the introduction of the European single currency – the Euro – as its sole legal currency once it fulfils a number of economic and financial conditions laid down in the Treaty of Maastricht. The introduction of the Euro will have a great impact on businesses and on the local economy in general. Since the euro will alter the circumstances prevailing within our markets, such businesses must start preparing themselves, particularly in respect of the information and adherence to the required criteria. Only then can Malta say that it tis capable of operating on the same level as its European competitors. Listed companies were asked to fill in a questionnaire to find out the extent to which they are prepared for this event. The result showed that they are not yet prepared for this event since the majority of them are expecting he government to announce the official date of access before taking any action.