Brussels, 11/05/2007 (Agence Europe) - The two countries aspiring to be part of the single currency area, Cyprus and Malta, should see the doors of the eurozone open slightly when the Commission and the European Central Bank (ECB) publish their assessment of compliance with convergence criteria on Wednesday 16 May. According to Reuters, the Commission is preparing to recognise that Cyprus has met the conditions required for adopting single currency, and is also preparing to do the same for Malta, authorising both countries to join the eurozone from 1 January 2008. The Commission's spring economic forecasts estimate in fact that Cyprus will have a deficit of 1.5% of GDP in 2006 and of 1.4% in 2007 (compared to 2.3% in 2005). Malta, which still exceeded the reference value of 3% in 2005, stands at 2.6% for 2006 and at 2.1% this year and should thus, on Wednesday, come out of the excessive deficit procedure launched against it. In both countries, the debt still exceeds the ceiling of 60% (with 61.5% and 65.9% respectively in 2007) but the tendency is now on the downturn (in Cyprus the debt was 69.2% of GDP in 2005 and 65.3% in 2006, and, in Malta, it was 72.4% in 2005 and 66.5% in 2006). Having joined the exchange rate mechanism of the European monetary system (ERM II) on 2 May 2005 (EUROPE 8940), Cyprus and Malta also took part during the required two-year period in this system which is supposed to ensure exchange rate stability. They also eliminated all persisting incompatibilities in their legislation, to ensure the independence of the national central bank, among other things. Finally, the Commission's analysis should show that the two candidates respect the inflation and interest rates criteria. The Ecofin Council may then address the matter (in June), before the heads of state and government give their endorsement during the European Council on 21 and 22 June. A final decision of EU27 finance minsters (in July) would therefore authorise Cyprus and Malta's entry into the eurozone and establish the fixed and irrevocable conversion rate between the national currency and the euro. The two countries will then only have to ensure smooth, practical transition to single currency. (ab)