Sant against Malta adopting the euro

Adopting the euro would have an adverse effect on the island's sovereignty, Labour leader Alfred Sant said yesterday.

Speaking at a news conference outside the Central Bank, in Valletta, Dr Sant said candidate countries were being forced to adopt the euro without receiving any compensation in return. In contrast, EU member states such as the UK and Sweden had the opportunity not to adopt the currency.

A substantial amount of Malta's imports were paid for in dollars and tourism was mainly based on the dollar and sterling, he observed.

Dr Sant explained that over the years, the value of the Maltese lira had been adjusted to reflect a basket made up of the euro, the yen, the dollar and sterling. Should Malta adopt the euro, all this would be lost as the Maltese currency would depend on decisions taken on a European basis.

The Central Bank of Malta would also lose its autonomy and ability to safeguard the national interest once Malta joined the EU.

This was not acceptable for the Labour Party, Dr Sant said.

The basket of currencies used for the calculation of the value of the lira is currently composed of the euro (70 per cent), the pound sterling (20 per cent) and the US dollar (10 per cent).