Bonello began by observing that:

"A month has passed since the euro became Malta’s new currency. Euro area membership is a major milestone for any country for there are clearly long-term benefits associated with participation in the world’s second most important currency area."

"There is indeed much evidence that the macroeconomic framework which supports the euro has delivered price stability, job creation and economic growth."

He continued: "For a small, open economy like Malta’s with a heightened vulnerability to external and sector specific shocks, the benefits of the single currency can be expected to be even more valuable."

"From a central banker’s perspective, moreover, euro area membership means replacing the manifold risks inherent in managing a small, vulnerable currency such as the Maltese lira by the greater security afforded of a major reserve unit," he said.

Speaking about the involvement of the Central Bank, the Governor went on to state that:

"The Central Bank of Malta has been present at every stage of Malta’s journey to the euro. In the early years it provided the intellectual underpinnings for the project as well as policy advice. For example, it was at the fore in highlighting the long-term benefits for Malta’s small, open economy of EU membership and of an early adoption of the single currency."

"It also cautioned, however, that these benefits would only materialise if the existing macroeconomic imbalances were addressed through the implementation of appropriate reforms. The Bank also emphasized that these reforms were not only necessary to ensure eligibility for adopting the euro, but also in view of the strong competitive pressures that were emerging in the global economy."

Talking about Malta's future in the Eurozone, Bonello continued:

"Becoming a member of the euro area does not represent the end of a process, but rather the beginning of a new era in which the burden of adjustment will have to be carried entirely by the real economy and in which the harmful effects of inefficient institutions and practices on costs and final prices will become more visible."

"The policy challenge, therefore, is to maximize the benefits of participation in monetary union and so bridge the remaining income gap with the euro area. Malta’s per capita income level is still around 70% of the euro area average."

"The next phase in Malta’s economic history, therefore, promises to be a challenging one, but it should also be an exciting time."

"For, while the EU has for fifty years brought peace and stability to the peoples of Europe, the Single Market and Economic and Monetary Union have created a congenial environment in which economies can grow and people prosper," he concluded.