There was a time where Malta had its own currency. In the first January of 2008, Malta changed its currency to the Euro and the Lira was no more. The change was not exceptionally well-received at the time, as many emphasized that the Maltese Lira made us distinct and it was a strong currency. In this article, we will discuss some of the things which may have happened, should Malta had kept the Lira.
Less open for business
Following Malta’s accession to the European Union and subsequently the adoption of the Euro, Malta made it easier for businesses to set up shop and provide services to the other European countries due to a common currency. If Malta kept the Lira, we may have not appealed so much to businesses and never experienced such growth.
Less expensive property
If Malta attracted less foreigners, property prices would have probably not increased so substantially, making Malta’s growth slower and more manageable. Some today, would argue that this may not be a bad thing.
Less convenient to travel
The fact that we have a common currency with all the European Union Members, makes it easier to travel with no need for currency conversion. This change in currency made us more integrated members within the European Union, creating a sense of uniformity and easiness when it comes to payment transactions.
A stronger sense of pride
If Malta kept its own currency, it would have been a distinguishable factor, interesting for foreigners and also creating a sense of pride for the Maltese. It may have put us in a position similar to the UK where they are EU members but enjoy a certain distinction. Then again, would this have been worth it? Would you have preferred to lose out on business opportunities just for the sake of national pride?
Less international shopping
Considering that the currency would be different, it would be more complicated to buy products from foreign websites. It would also be difficult to compare value for money due to the difference in currency.
Foreign exchange volatility for businesses
For local businesses who deal with EU member countries, floating exchange rates would be another part of the equation. This increases exchange rate risks and currency conversion costs which would decrease trade.
What is your view on Malta’s adoption of the Euro? Would you have preferred Malta to keep the Lira? Let us know in the comments section below.