the decision - making organs of the ecb. in fact, the bank has already been invited to nominate a representative to sit on each of the twelve committees of the ecb in an observer capacity as from april. these technical committees deal with issues ranging from accounting, auditing and legal matters and banking supervision, to market operations, payment and settlement systems, statistics and information technology. the early presence of accession countries ’ central banks on these committees serves to underline the fact that adopting the single currency involves more than the physical introduction of euro notes and coins would suggest, although this, too, will be one of the central bank ’ s responsibilities should the day come when euro notes and maltese - designed euro coins become legal tender. indeed, the adoption of the euro touches upon the most fundamental aspects of a central bank ’ s core functions, its operational framework and its institutional set - up. it could be described as the start of a new and challenging phase that will give another dimension, not only to the central bank itself, but to policy - making in malta more generally. and, not least, as may be seen from the papers presented at this seminar, the single currency also holds out the prospect of significant efficiency gains and, therefore, of financial savings.

michael c bonello : single currency issues – a central bank perspective speech by mr michael c bonello, governor of the central bank of malta, at the conference “ the euro - the impact on business ”, organised by the malta federation of industry, 16 january 2003. * * * by way of introduction, it is important to stress that economic and monetary union ( emu ) and the euro are key aspects of the treaty on european union. they are a logical consequence of the process of european integration, and in particular of the economic rationale of increased trade as the driving force for the further integration of citizens, institutions and markets. indeed, the arguments for more closely integrated markets, namely that greater trade and financial integration will increase economic efficiency and improve welfare, can equally be made for a single currency. in the case of the eu, the advantages of a single market postulated by economic theory appear to have been amply realised. since internal borders were removed ten years ago, it is estimated that the single market has helped to create 2. 5 million extra jobs ; the eu ’ s combined gdp in 2002 was 1. 8 %, or euro 164. 5 billion, higher than it would have been ; and each household was on average 5, 700 euro better off. market opening is, therefore, not only good economics but also very good social policy. further benefits can be expected to flow from the introduction of the single currency. a recent study has in fact suggested that currency union approximately doubles trade. and specifically with regard to the euro, another study has concluded that in the case of hungary, euro area membership may raise the gdp growth rate by 0. 6 to 0. 9 of a percentage point in terms of a twenty - year average. the euro thus lies at the very heart of the eu and it is therefore no surprise that eu membership carries with it an obligation to participate in emu and to adopt the single currency. participation in emu requires a number of preparations, relating to : • the legal transposition of the acquis on emu into national law ; • fulfilment of the maastricht criteria ; and • the setting - up of the necessary institutions and mechanisms for the co - ordination of fiscal and economic policy, which remain at the discretion of national governments. while the central bank will be expected to play a leading role in the event of malta taking up the offer of eu membership, the country ’ s eligibility to join emu and its ability to