NEWS | Wednesday, 19 December 2007

The Euro: Opportunity or Threat?

With E-day round the corner, David Darmanin speaks to the self-employed and small business owners. Really and truly, how much will this changeover hurt?

	Joseph Camilleri, Importer of Beds and Mattresses I will be expecting my next stock consignment in the second quarter of 2008, since we made sure to have enough stock until then. Upon delivery, we will have to fork out an additional 26% on our normal prices. This has to do solely with the energy crisis affecting the whole world, not with Euro changeover – as often wrongly perceived.
	Xandru Grech, Personal Trainer I shan’t be affected much by Euro changeover, it’s simply a matter of getting used to a different currency – otherwise business as usual.
	Dr Tim Ellis, Notary Public I cannot deny that changeover is somehow increasing our workload. When drafting contracts, we always write down amounts in words and figures. Now, a property worth Lm40,000, whose amount in words is featured a number of times in a contract, now also requires the feature of its Euro equivalent – and therefore €93174.94 in words. Imagine having to write that seven times in one contract. From a more technical point of view, we have had an influx of queries on how changeover will affect our clients in terms of property, wills and other contracts. It seems that for some people, the fixed rate idea is still difficult to understand. I have also had to incur additional expenses in invoicing systems and changeover related software. Otherwise, I think the biggest headaches are temporary, until the dual display period elapses in June 2008. I am pretty sure that everything will fall into place eventually.
	Englebert Grech, Film and TV Producer On this subject, people who work in the arts will tend to go beyond the practical affects of changeover. So from a purely romantic point of view, I will be missing the Maltese Lira since I feel it has helped us in feeling that we have an all Maltese identity. From a practical viewpoint, I will be completely unaffected by the changeover. Before I traded in Lm, and now I trade in equivalent Euro amounts – to me it’s only money.
	Alan Montanaro, Principal – Helen O’ Grady Drama Academy Due to the nature of my business I shall be completely unaffected. The way we transact is by receiving enrolment forms from parents who, as a general rule, endorse a cheque. I won’t even have issues with giving out change.
	Keith Spiteri, Managing Director – Savemart Supermarket Most of the success of our business revolves around pricing and people’s perceptions. We have been using the successful Lm1.00 round off – which people are now accustomed to. Changing everything to €2.33 is not on the cards – it will simply not work. Besides, everyone, including our suppliers, tend to round off upwards. A slight inflation is therefore inevitable. I am also expecting people to be confused in the first few months – and until they get used to budgeting their wages in Euro, business here will surely be slower.
	Daniel Galea, Chef Patron – Da Daniele Restaurant I generally agree with the adoption of Euro. I will definitely benefit in that the currency is better understood by most tourists, it is straightforward and most people around the world can relate to it better than they relate to the Lm. My understanding of it is that if most developed countries in Europe use it, why shouldn’t we? My only disappointment is with how certain suppliers have shot up using the changeover as an excuse. Some of the food items I purchase went up by 30% or more.