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It has now been a year and a half since Malta adopted the Euro, and the consensus among partners is the adoption of the currency is a success. "I hate to think what might have been if the Maltese lira was still in circulation....

It has now been a year and a half since Malta adopted the Euro, and the consensus among partners is the adoption of the currency is a success. "I hate to think what might have been if the Maltese lira was still in circulation. Adopting the Euro has helped the economy become resilient," says one partner.

Commentators believe that Malta has not been as badly hit by the global downturn as some of its fellow EU members. A slowdown in certain practice areas has been felt, but the partners report that opportunities are still trickling through.

Malta's banking sector is stable, given its conservative nature, but lending has become stricter. This has led to local borrowers turning to the debt market. Seven debt issues are planned up until December 2009, providing lucrative work for capital markets-focused firms.

M&A work has stopped. However, a small, slow, resurgence is expected over the next year mostly relating to foreign companies that have set up their holding company or SPV in Malta.