National coin design shortlisted
Cypriot businesses who take advantage of the introduction of the euro by increasing prices could see themselves being named and shamed by the authorities, according to Financial Mirror sources.
The government is targeting the adoption of the euro on January 1, 2008. The “irrevocable exchange rate” of the Cyprus pound, likely to be around 1.7 euros per Cyprus pound, will be known a few months beforehand.
However, cost considerations means that the authorities are unlikely to insist that all retailers will be obliged to display prices in both currencies.
This raises the risk that some retailers could try to sneak in price increases.
Perceptions by consumers in euro-area member states that the adoption of the euro led to price-increases by profiteers, combined with what appears to be waning support for the euro, is behind the concerns of the authorities both in Cyprus and at EU level.
Although overall inflation in the euro-area was not really affected when the euro was adopted by the initial 12, it is known that consumers’ perceptions are formed by the prices of every-day items, such as milk, newspapers and petrol.
Even the European Central Bank Governor himself noticed that his daily parking fee at the ECB rocketed after the introduction of the euro, according to reports.
Cyprus coin design shortlisted
Meanwhile, the Central Bank of Cyprus and other competent authorities have shortlisted two designs for the euro coins. Each euro coin has a European side and a national side of the euro-area member states.
In total, 46 applications were received for the Cypriot design, both from Cyprus and abroad.
A number of hurdles need to be surmounted before the final design is known. For example, it must be approved by the Cyprus Council of Ministers and by the finance ministers of the euro-area member states.
Like the national currency, the Cypriot euro-coins will include the two official languages of Cyprus, Greek and Turkish, as well as English.
The winners are likely to be known in early 2006, but the publication of the design itself may be kept secret for some months in order to avoid forgeries.
