Cyprus Ready to Join Eurozone in 2008

The European Commission proposes that Cyprus can join the euro area, on January 1 next year, having fulfilled all the necessary criteria, Commissioner for economic and monetary affairs Joaquin Almunia said in Brussels.

Announcing the decision at a press conference in Brussels, he said he expects the European Council and the ECOFIN to endorse it, making Cyprus and Malta the two new members to join the euro area.

“I am convinced that the EU Council will endorse today’s decision. There is no question about it, as far as I am concerned,” he told the press conference when asked about the possible political dimensions of having the Commission proposal ratified by the EU heads of state at the June summit.

Replying to questions about the adoption of the euro in the southern government controlled part of Cyprus and not in the northern Turkish occupied areas of the Republic, he explained that the acquis communautaire applies only in the areas under the control of the government of the Republic of Cyprus and not in the northern part of the country where the government does not exercise its control (because of the continuing Turkish occupation).