The European Commission has announced that Malta has achieved a high degree of sustainable economic convergence with the other Member States. Malta has thus fulfilled the necessary conditions to adopt the Euro as from the 1st of January, 2008. This positive assessment is conditional on the removal of the excessive deficit procedure for Malta by the Council, following a recommendation from the Commission adopted also on the same day.
In its Convergence Report, the Commission assesses whether Malta has achieved a high degree of sustainable convergence, measured against certain criteria amongst which the government budgetary position, price stability, exchange rate stability and convergence of long-term interest rates. Compatibility of the legal framework with the Treaty is also examined.
The final decision will be taken by EU finance ministers in July, after consultation of the European Parliament, and following a discussion by the Heads of State or Government at their summit in June.