Cyprus proud to be a euro-zone member

Cyprus Finance Minister Michalis Sarris has described the decision paving the way for the introduction of the Cyprus pound into the euro-zone as a historic day for Cyprus. The ECOFIN Council has endorsed the reports
by the European Commission and the European Central Bank for the entry of
Cyprus and Malta into the euro-zone and the adoption of the euro as our
national currency on 1 January 2008, said Sarris.

 “I would like to thank the Council and the European Central Bank for their
strong support throughout the process of preparation for the achievement of
this important goal. I would also like to congratulate Malta for their own
success.”
The forthcoming introduction of the euro is a milestone in the short history of
the Republic of Cyprus. It will lead to a further integration of Cyprus into
the EU, and will make our small country part of the large euro area.
“Our efforts to fulfill the commitments to the Union and our desire to adopt the
euro as soon as possible after our entry in the EU, shows the commitment that
the Republic of Cyprus has to the principles and the ideas that the European
Union represents.”

The favourable assessment of Cyprus‘ convergence to the euro area constitutes
an endorsement of the economic policies undertaken in recent years. We are
firmly committed to continue with the fiscal consolidation policy. We target a
balanced budget by 2009 and a further reduction of public debt to levels below
60% of GDP by 2008. We remain, at the same time, committed to the Lisbon agenda, which incorporates our vision of a socially cohesive society.

Cyprus supports the firm implementation of the revised Stability and Growth
Pact. We believe that a flexible framework for fiscal discipline that places
emphasis on the reduction of public debt and the long-term sustainability of
public finances benefits our economy.

The adoption of the euro will bring concrete and tangible benefits to the
Cypriot citizens. Cypriot businesses will also benefit significantly.

We remain alert and stand ready to address any challenges that may arise. We
take seriously the concerns of our people that the euro adoption may lead to
unjustified price increases. However, we are convinced that the effects of the
changeover on the general price level will be negligible. Nevertheless, we have
prepared and are implementing a comprehensive policy framework, aiming at
addressing people’s concerns.

The people of Cyprus have worked hard to make the adoption of euro a reality. I would like to thank everyone for their work. We acknowledge that a lot more work is needed to make the changeover to the euro a complete success. I have no doubts that on January 1st 2008, we will have a successful transition to the euro, concluded Sarris.