The European Commission and the European Central Bank’s (ECB) recommended Malta to adopt the euro currency last May after it obtained positive convergence reports.  The Maltese islands application to changeover to the euro was submitted on the 27th February.  

The decision on the conversion rate was taken unanimously by member states already in the eurozone, as well as prospective applicants including Cyprus, whose pound was also fixed against the euro. With Cyprus and Malta the euro area will as from next January comprise 15 out of a total of 27 EU countries and a total population of 318 million people.  

Addressing the Council, Prime Minister and Minister of Finance Dr Lawrence Gonzi said that joining the eurozone was the next logical step granted the strong ties between Maltese and European economies.  

He added that the euro will make Maltese economy more competitive and encouraging both local and foreign investment. 

Closing his speech, the Prime Minister thanked the citizens of Malta for being “yet again protagonists in the journey towards this historical decision”.

The Council was also attended by Parliamentary Secretary Tonio Fenech, Malta's Permanent Representative in the European Union Richard Cachia Caruana, the Central Bank Governor of Malta Michael Bonello and high officials from the National Euro Changeover Committee (NECC).

Other decisions taken during the ECOFIN included the formal approval of the target date for the changeover as well as lifting of the derogation on the applicants’ European Monetary Union (EMU) membership implies that the countries are obliged to adopt the euro as its national currency.    

Tuesday’s meeting also saw EU Finance Ministers being briefed about the priorities of the Portuguese Presidency on issues of financial policy. 

The final approval of Malta’s adoption of the euro has been welcomed by the Malta Chamber of Commerce and Enterprise. President Mr Victor A. Galea said “It is indeed a historic milestone which will further enhance Malta’s competitiveness and strengthen the way we do business.”

The European Commission also welcomed the ECOFIN's final and formal with Commissioner for Economic and Monetary Affairs Joaquín Almunia saying that "Thanks to economic and monetary union, the euro area has now enjoyed an unprecedented period of price stability and low interest rates. But being part of a monetary union also implies an added responsibility vis-à-vis the other members; a responsibility to run sound public finances and to coordinate economic policies for the benefit of more growth and better jobs for all."