Cyprus welcomes ECOFIN decision on euro

The Finance Ministry has welcomed warmly a decision by the European Union Finance Minister to propose to the European Council the accession of Cyprus and Malta to the Eurozone on January 1, 2008.
The Ministry reiterated its determination to continue working for a smooth change of currency from the Cyprus pound to the euro in January next year and iron out any problems that may arise.
The political decision for the accession of Cyprus and Malta to the euro area will be taken by the European Council, on June 21 and 22 in Brussels. On July 10, ECOFIN will ratify the decision and will determine the exchange rate of the Cyprus Pound against the euro.
Cyprus has met all the necessary criteria to join the euro zone. Public deficit in 2006 was 1.5% of the GDP and public debt stood at 65.3% of the GDP. Inflation was 2%, long-term interest rates stood at 4.2% and the Cyprus pound stayed in the Exchange Rate Mechanism II for two years within the plus or minus tight band of 2.25% from the central parity rate of 1.7086 or 0.5853 to the euro.