Convergence Reports 2007 on Cyprus and Malta
Convergence Reports 2007 on Cyprus and Malta(819 kB)
On 16 May 2007, the European Commission concluded that Cyprus has achieved a high degree of sustainable economic convergence with the other Member States and that it fulfils the necessary conditions to adopt the euro. On the basis of its Convergence Report, the Commission is proposing to the Council that Cyprus adopts the euro on 1 January 2008. The final decision will be taken by EU finance ministers in July, after consultation of the European Parliament, and following a discussion by the Heads of State or Government at their summit in June.
Article 122(2) of the Treaty requires the Commission to assess the fulfilment of the conditions for full participation in the Economic and Monetary Union by Member States with a derogation at least every two years or at the request of a Member State. The report adopted responds to a request for an assessment submitted by the Cypriot authorities on 13 February to the Commission and the European Central Bank (ECB). The Commission also adopted a report on Malta in response to a similar request submitted on 27 February. The ECB issued a Convergence Report on the same day as well, covering the two countries as envisaged by the Treaty.
In its Convergence Report, the Commission assesses whether Cyprus has achieved a high degree of sustainable convergence, measured against the criteria set out in Article 121(1) regarding the government budgetary position, price stability, exchange rate stability and convergence of long-term interest rates. Compatibility of the legal framework with the Treaty is also examined.
(European Economy 6. January 2007.