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Cyprus and Malta get green light from Commission

Malta and Cyprus are a step closer to euro adoption: The European Commission proposed that both countries should be allowed to adopt the euro in 2008.


Cyprus and Malta have taken a big leap towards euro adoption. Following a thorough analysis in its Convergence Reports, the European Commission's verdict is clear: both countries meet the necessary economic and legal conditions for joining the 13-strong euro area and should be allowed to adopt the single currency as of 1st January 2008. 

These reports and legal proposals formally adopted today are key for Malta's and Cyprus's bid to enter the euro area - as Heads of State and Governments will first discuss them at their Summit on 21 and 22 June, and they also form the basis of the final decision taken by EU finance ministers on 10 July.

If the minister's decision is indeed positive, the currency club would grow to 15 members, with Malta and Cyprus's accession being the second enlargement after the new Member States joined the EU in 2004. 

Cyprus: Final convergence hurdle cleared

According to the Commission, Cyprus has achieved a high degree of sustainable economic convergence and is ready to adopt the euro in January 2008. Already in its December 2006 convergence report, the Commission concluded that Cyprus met three convergence criteria.

A remaining task in the run-up of this Commission's report was to remove all outstanding incompatibilities with the requirements of EU law. In March 2007, the Cypriot Parliament passed the Law enacting the necessary amendments to the Central Bank of Cyprus Laws to ensure full compliance... more...>

Malta: Excessive deficit procedure ended

According to the Commission, Malta has achieved a high degree of sustainable economic convergence and is ready to adopt the euro in January 2008. For Malta, key challenges were to control inflationary pressures and to bring its public deficit in a sustainable manner in line with the Maastricht criteria. Following a successful fiscal consolidation programme of the Maltese authorities, the Commission concluded that Malta corrected its excessive deficit and recommended EU finance ministers to end the excessive deficit procedure... more...>

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