NEWS | Wednesday, 18 July 2007

CBM participates in Eurosystem structures

Following the ECOFIN decision that Malta will be adopting the euro on 1 January 2008, the Central Bank of Malta has been invited by the European Central Bank (ECB) to start participating in the Eurosystem’s structures in an observer capacity with immediate effect. The Eurosystem comprises the ECB and the national central banks of those countries that have adopted the euro.
This means that the Governor will now be participating as an observer in the most important decision making body of the ECB – the Governing Council, which, among other tasks, is entrusted with the formulation of monetary policy for the entire euro area. The Governing Council normally meets twice a month. The Governor will attend his first Council meeting on 19 July.
The Governor will become a member of the Governing Council as from 1 January 2008. He will also remain a member of the General Council of the ECB, in which he has been participating as an observer since June 2003, and as a member since 1 May 2004, when, upon Malta’s accession to the European Union, the Central Bank of Malta became part of the European System of Central Banks (ESCB).
The Bank’s experts on the various ESCB committees and substructures will also start participating as observers when these bodies meet in Eurosystem composition before becoming full members from the beginning of next year.
The Central Bank of Malta will remain solely responsible for the formulation and implementation of monetary policy in Malta until euro adoption.