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Cyprus and Malta in euro zone
02.01.2008, 11:33
On 1st January, at midnight, Cyprus and Malta adopted the European currency , which will replace the Cypriot pound and the Maltese lira, bringing the number of EU states using the euro to 15 out of the 27 member states. They will add around 1.2 million people to the euro zone - some 800,000 Cypriots and around 400,000 Maltese - bringing the number of those EU citizens using the euro as a national currency to 320 million out of the EU's total 495-million large population.
Cyprus and Malta got the green light to introduce the euro in May 2007, after fulfilling the necessary criteria, including a government deficit lower than three percent of GDP, a government debt not higher than 60 percent of GDP, as well as price and exchange rate stability.
The euro could also bring the economies of the divided
island closer together, as the northern Turkish part of Cyprus may adopt the
currency unilaterally, according to Reuters.
Northern Cyprus, which is recognised only by Turkey internationally, is
currently using the Turkish lira, but would have no objection to introducing
the euro, the agency reports.
However, both Cypriots and Maltese citizens have indicated they fear the euro
entry may be followed be a possible price rise - as it happened in Slovenia in
2007.
Slovakia is expected to be the next member state to adopt the euro in 2009,
while the two newest EU states, Bulgaria and Romania, hope to be able to follow
suit by 2010-2011 and 2014 respectively.
Of the remaining 12 countries currently not in the euro zone, only the UK and
Denmark have chosen not to adopt the European currency for reasons of economic
sovereignty - but they have the option to join in the future.
Source: EUobserver.com