President Tassos Papadopoulos has described as “very significant” the entry into the eurozone on January 1, 2008, saying that this confirms that the government’s fiscal policy has been a success and the local economy sound enough to meet EU criteria for the euro area.
“This is an important landmark for Cyprus and I believe that once we adopt the euro, prices will be rounded up downwards as opposed to upwards,” he said on departure for the European Council meeting which will deal with Cyprus’ and Malta’s accession to the euro area.
He reiterated that this was achieved with the concerted effort of all the social partners, adding that government services will monitor the change of currency to ensure that there is no exploitation of prices.
Papadopoulos recalled that the Cyprus pound will be locked to the euro in early July and the exchange rate will not be known before that.
Referring to the EU summit that starts Thursday, he said this was “very important” as it will review reforms in the European Treaties.
“We hope that it will be possible to reach an agreement that will facilitate the smoother running of the EU, which so far has been governed by the provisions of the Treaty of Nice,” he said.
Papadopoulos also said that the current trend among the 27 members seems to indicate that existing Treaties are set to be promoted but no new treaty is likely to be approved.
“There are several differences and everybody understands that if the current German EU presidency does not succeed in clinching such an agreement, then things will be more difficult in the future,” he concluded.
Earlier Wednesday the European Parliament approved by an overwhelming majority of 585 votes in favour, 14 against and 90 abstentions, a report by a German Euro MP which gives the green light to Cyprus’ entry into the euro area.
Speaking during the debate at the Parliament, German Minister of State for Europe Gunter Gloser and EU Commissioner for Economic and Monetary Affairs Joaquin Almunia welcomed Cyprus and Malta, saying both countries meet the criteria set out by the Union.
Source: Financial Mirror
