ECOFIN to lock Cyprus pound with euro

Cypriot Minister of Finance Michalis Sarris departed on Monday for Brussels to participate in Tuesday’s ECOFIN, which will fix the irrevocable exchange rate of the Cyprus pound against the euro.
The decision on the conversion rates must be taken by unanimity of the euro area member states plus the member states concerned – on a proposal from the Commission.
Sarris has said that as soon as the irrevocable exchange rate of the Cyprus pound against the euro is fixed, the government will begin a campaign to inform public opinion about the introduction of the euro, on 1st January 2008.
The dual display of prices in Cyprus will officially start on September 1.
EU Finance Ministers will be briefed about the priorities of the Portuguese Presidency on issues of financial policy.
They will also discuss the evaluation of Austria’s revised stability programme and the Czech Republic’s revised convergence programme. They will be briefed on the course of Hungary being removed from the excessive deficit process and will exchange views on the better functioning of the Stability and Growth Pact and the funding of the Galileo programme.
The formal decision will be accompanied by celebrations on Tuesday in Brussels in early afternoon. Participants will include among others Commissioner Joaquin Almunia and the Finance Ministers of Portugal, Cyprus and Malta.
The Commission proposed on May 16th that Cyprus and Malta become members of the euro area. The proposal was welcomed by the June 21-22 European Council but the formal decision must be taken by the Council of Ministers.
With Cyprus and Malta the euro area will count 15 out of the 27 EU countries and a total population of 318 million people.