Almunia says better public communication on the Euro needed

European Union’s Economic and Monetary Affairs Commissioner Joaquin Almunia said here Thursday that Eurobarometer polls indicate that better public communication on the euro is necessary.
Speaking on a conference entitled ”EMU Governance and Euro Changeover: Cyprus on the Path to the Adoption of the Euro”, Almunia said that 2007 will be a very crucial year regarding the preparation for joining the euro, adding that Cyprus has shown signifigant progress regarding the convergence efforts.
”Efforts in this country have shown results and I am pleased to note that progress towards nominal convergence in Cyprus is encouraging,” he added.
Almunia urged however Cyprus to continue on the route for budgetary consolidation. ”By taking prudent approach to fiscal policy, achieving public finances close to balance by the end the decade is a realistic goal for Cyprus,” he added.
The EU Commissioner said that Cyprus still needs to put in place a comprehensive strategy to reassure the public over possible price increases during the change over.
He also referred to steps needed to secure sustainable public finances, making special reference to Cyprus retirement scheme.
In his address, Cypriot President Tassos Papadopoulos said that said that Cyprus entry to the euro-area will be a success, pointing out that this development will facilitate the efforts for a real viable solution of the Cyprus problem.
”Our accession to the euro zone does not negatively affect the economy’s growth and does not entail weakening of the welfare state or limiting of the social benefits of the economically weaker classes,” Papadopoulos said.
He also assured all the preparatory work under way and the economy’s performance are such that allay the concerns, adding that measures will be taken to prevent negative consequences, noted in other EMU countries.
”Cyprus accession to the Euro zone will represent a basic cushion of our policy on economic unification in the framework of a united Cyprus, because on the hand the euro will be the currency of the united Cyprus and on the other because the shaping of the economic policy in the euro area reinforces the unifying and pervert separatist trends,” he added.