It is possible, and indeed desirable, to introduce the concept of co-payment by beneficiaries at the widest possible level without compromising the satisfaction of genuine needs. Fourth, there must be acceptance of the need for everyone to contribute to the development of the economy, including through the payment of taxes due. It is highly probable that unless these community values are inculcated in to-day’s rising generations, the economy’s growth prospects will not improve because the resources necessary to undertake the required investments will simply not be available. Fifth, there must be a more effective and focused approach through which Government and its entities support existing export industries and the establishment of new foreign direct investment in Malta. The provision of business advisory and support services must be improved and bureaucratic procedures reduced to a minimum so as to make the most of the opportunities available in a more difficult international trading environment. This new approach would also require a more active participation by Malta in international trade fora at an EU level. It also calls for better co-ordination on these matters within the public administration, and also between Government and the constituted bodies representing the exporting community, whether in industry, tourism or financial and other services. Conclusion Malta’s accession to the European Union has opened up undoubted scope for economic and social advancement. The potential for Malta to successfully exploit this opportunity has been given a clear endorsement by the EU Member States and institutions with this week’s entry of the Maltese lira in ERM II.

Page 3/5  Our country has one of the most solid currencies in the world, namely the Swiss franc. No other currency has retained its value so well since the outbreak of the First World War. Nor has any other country kept average inflation lower than Switzerland. But there is another side to this coin. In times of high uncertainty, the Swiss franc tends to appreciate strongly, putting the economy under pressure and jeopardising price stability. We have witnessed this again recently. As a result, the SNB has been faced with the challenge of using its monetary policy to guarantee price stability in Switzerland. With the negative interest rate and our willingness to intervene in the foreign exchange market as necessary, we are able to counteract the attractiveness of Swiss franc investments. Our goal here is always to ensure appropriate monetary conditions in Switzerland. In general, an overvalued Swiss franc can pose a problem for the financial industry too. This is especially true for the important business of wealth management, where returns mainly accrue in foreign currencies, while costs are generally incurred in Swiss francs. We are, of course, also aware of the challenge that the negative interest rate poses to the financial sector. We have therefore reduced the burden it places on the Swiss banking system to the level necessary for the implementation of monetary policy. Once again, I must also stress that the low interest rate environment is a global phenomenon with structural causes. This is unfortunately not something that Switzerland can escape.