Cyprus very well prepared for eurozone, says ECB Vice President

Cyprus is very well prepared for its accession to the eurozone, on January 1st, 2008, European Central Bank vice President Lucas Papademos said. Addressing an audience at the Central Bank of Cyprus, Papademos said Cyprus has made remarkable progress in improving the living standards of its people, thanks to an extended period of stability-oriented macroeconomic policies.
“It is, therefore, not a surprise that Cyprus is among the first of the new EU Member States to adopt the euro. And in many respects, Cyprus can serve as an example for other countries as regards the question of how to successfully pursue economic reforms and convergence”, he said.
ECB Vice President added that the key factors in Cyprus’ economic success have been the fact that inflation has remained contained and the favourable conditions for both real and nominal convergence.
“I am pleased to say that Cyprus is well prepared for its accession to the euro area. Congratulations. However, a strong commitment to both fiscal consolidation and further structural reform remains essential in order to reap the full benefits of being part of Europe’s Monetary Union”, he added.
Present at the event were among others, Minister of Finance Michalis Sarris, Governor of the Central Bank of Cyprus Athanasios Orphanides, government officials, local and foreign bank representatives, as well as members of the Cyprus Chamber of Commerce and Industry.
Addressing the event, Minister of Finance said that Cyprus is awaiting with optimism its accession to the eurozone as well as the exploitation of the benefits stemming from its accession.
He noted that Cyprus’ fiscal policy should continue “its right course” and added that the public’s concerns regarding the adoption of the euro are being addressed with success.
Governor of the Central Bank described Cyprus’ accession to the eurozone as historical and said that through this step, the long term stability of the Cypriot economy will be achieved.
“The introduction of the euro will be the beginning of a new era. With the right handling and the right policies, the euro will bring many benefits to the Cypriot economy”, he concluded.