Brussels, 13/02/2007 (Agence Europe) - The European Commission confirmed on Tuesday 13 February that Cyprus had formally applied to join the euro with effect from 1 January 2008. According to the 2006 Commission convergence report, published in December (see EUROPE 9321),Cyprus, at that time, met the criteria on price stability, public deficit and long-term interest levels, but not the criteria on exchange rate stability and legislative compatibility with the treaty (statute of the national central bank).
“Cyprus has submitted a request, which we received this morning, for us to assess whether it is ready to join the euro zone,” said the spokeswoman for Economic and Monetary Affairs Commissioner Joaquin Almunia. In line with procedure, the Commission and the Central European Bank (ECB) will assess Cyprus's application in the light of a series of convergence criteria set out in the treaty. These two institutions will probably give their decision in a report in mid-May. The final decision on whether or not Cyprus can join the euro zone will then be able to be taken by member states at the European Council in Brussels on 21-22 June. If the final decision is favourable, the Ecofin Council will have to finalise the procedure (probably in July) by setting up the definitive exchange rate of the Cypriot pound to the euro. (lc)