Euro information

Melvyn Mangion from the National Euro Changeover Committee answers your questions on the euro.

What steps will Government take to control price increases during the changeover to the euro?

Government wants to ensure that the changeover to the euro will be an efficient and smooth process.

As Malta prepares to adopt the euro, particular attention will be given to the monitoring of prices. According to surveys conducted among the Maltese, many seem to think that the euro will cause prices to rise. Through the Euro Adoption Act, measures against unjustified price increases, such as dual display, will be given legal status and become enforceable.

The dual display of prices will also be an important instrument in this regard. This will create confidence among consumers, who will learn the value of goods and services in euros, and will be able to compare prices. The dual display of prices is for information purposes only and in no way does it encourage payments in euro.

Why is the dual display of prices being introduced this year and what are the benefits?

The introduction of the dual display of prices, that is the indication of prices in both Maltese liri and euro, aims to empower the consumer. Dual display is necessary to help consumers understand prices and values in euros and learn to think in euros. With effect from January 1 voluntary dual display is promoted, however dual display will become mandatory with effect from next July 1 and will last until June 2008.

During this period, consumers are expected to become acquainted with the value of goods and services in euros and will be able to compare prices. In this manner, consumers will learn to trust retailers when prices are converted into euros and will not fear being cheated. The dual display of prices is strictly aimed for information purposes only.

When dual display is introduced, will consumers be obliged to pay in euros?

The dual display of prices is strictly aimed for information and education purposes. The Maltese lira will remain legal tender up to December 31, 2007. Hence during this time the euro will remain a foreign currency and consumers are in no way obliged to pay in euro before '€ Day'.