Adoption of the euro in Malta
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Malta officially adopted the euro on January 1, 2008, becoming the 15th member of the euro area. When Malta joined the European Union in 2004 it committed to join the eurozone and replace its currency, the Maltese lira, with the euro. The government of Malta replacing the Maltese lira at an irrevocable fixed rate of 0.429300 lira per one euro. This change came less than four years after Malta joined the European Union in 2004, making it part of the eurozone.[4]
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Euro banknotes - all denominations | |
| Date | 1 January 2008 (introduction) – 31 January 2008 (complete transition).[1] |
|---|---|
| Location | |
| Type | Economic transition |
| Theme | Adoption of the euro as the national currency |
| Participants | Government of Malta, European Union[2] |
| Outcome | Replacement of the Maltese lira with the euro[3] |
- European Union member states (special territories not shown)
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5 not in ERM II, but committed to join the eurozone after meeting the convergence criteria (Czech Republic, Hungary, Poland, Romania, and Sweden)
- Non–EU member states
History
When it joined the EU in 2004, Malta committed to switching its currency, the Maltese lira, to the euro, as stated in the 2003 EU accession treaty. The transition would occur once the country meets all the euro convergence criteria. The European Central Bank (ECB) and the European Commission prepared their respective Convergence Reports in 2007 and based on the result of that report in May 2007 the European Commission concluded that Malta had fulfilled the necessary conditions for the adoption of the single currency. Therefore, The European Commission confirmed Malta met all convergence criteria. In July 2007 the EU Council adopted a decision allowing Malta to adopt the euro as its currency from 1 January 2008.[5] Malta chose a 'big bang' scenario, with cash entering use on the same day that the euro officially became the country’s new currency (1 January 2008), and a dual circulation period running until 31 January 2008 during which payments could be made using both Maltese lira notes and coins as well as the euro.[6] The Central Bank of Malta exchanged Maltese lira coins until 1 February 2010 and will continue to exchange Maltese lira banknotes until 31 January 2018.[7]