NEWS | Wednesday, 23 January 2008

EU finance ministers don’t expect dramatic US impact

Ecofin commends Malta on euro changeover

David Darmanin

In the first meeting Malta attended as a Eurogroup full member yesterday, the Economic and Financial Affairs Council (Ecofin) meeting covered an array of economic situations currently affecting the 27-nation EU bloc. Among issues discussed were the US economic situation, Malta’s Euro changeover as well as a banking system which fully allows common transaction systems across the Eurozone.
From Brussels, Parliamentary Secretary for Finance Tonio Fenech told Business Today that with regards to the worrying economic situation in the US, the Council was very positive on the provisions taken in EU countries aimed at absorbing the impact of any eventuality, “be it a slowdown, a recession or otherwise.”

“Discussions on Euro changeover have really shown Malta in a good light, identifying us as having passed through the experience with flying colours,” he said. “There have been positive commendations on the whole framework adopted, as well as provisions with which authorities can react to abuses.”
The Council also presented a publication highlighting the adoption of best practice for countries undergoing Euro Changeover. “In this report, one also finds a number of initiatives that Malta has championed – such as the Fair system and the price rounding procedures,” Fenech said.
Cheques, debit cards and other banking services within the Eurozone do not yet enjoy a facility common to different countries. On the Ecofin agenda this time round, SEPA (Single European Payments Area) was given specific attention. “SEPA will of course imply huge investments from banks,” Fenech commented.
“One would need to look into all of its aspects carefully. In any case, exaggerated bank charges will decrease for transactions within the Eurozone,. This results to a fairer system to the end consumer.
“Moreover, the Commission has found illegalities on certain charges imposed by Master Card. The EU realises that the consumer deserves a fairer treatment when it comes to certain bank charges. The MFSA in Malta is also reviewing some regulations imposed by local banks.”