Cyprus scheduled to adopt the euro in 2008 as economy converges with Europe
Cyprus will adopt the euro on January 1st 2008 provided its economy continues to converge with the conditions of the euro area, the EU said yesterday.
The European Commission's last convergence report was favourable towards Cyprus and EU finance ministers will make their final decision in July, with consultation from the European Parliament.
Joaquin Almunia, European commissioner economic and monetary affairs, said that although the Cypriot economy has been merging successfully with the wider eurozone area, there are still some matters to be addressed.
"In order to ensure that euro adoption will be a truly successful story, Cyprus must continue to implement stability-oriented policies in order to safeguard its external competitiveness," he explained.
Additionally, Mr Almunia commented that the country should make its preparations for the new currency to maximise the chances of a smooth handover from the Cyprus pound.
Recently, financial ratings firm Standard & Poor's described Cyprus' economy as "prosperous and resilient", thanks to a "short but impressive" record of financial restructuring.
Cyprus joined the EU in 2004.
< Back to latest news