Brussels, 07/01/2008 (Agence Europe) - Less than a week after its introduction, the Euro is gradually making headway in Cyprus and Malta. In a press release published on Monday 7 January, the Commissioner for economic and monetary affairs congratulated the Maltese and Cypriot governments for their efforts and explained, “this is testimony to the good preparations beforehand”. Joaquin Almunia added, “It is now crucial that both countries continue to implement sound fiscal and budgetary policies so that they can fully benefit from economic and monetary union”.
Up to 5 January, almost three quarters of cash payments were made in Euro (72% of cases in Cyprus and 73% in Malta). A study in the two countries for the Commission demonstrated that the single currency has largely replaced the Maltese and Cypriot pounds. In all transactions, retailers almost exclusively gave change in Euro (97% in Cyprus and 99% in Malta). A large majority of Maltese and Cypriots mainly had cash in Euro now (74% of Cypriots and 76% of Maltese for notes and 81% and 84% respectively for coins).
Queues were still visible at banks in the two countries but the situation appears to be getting back to normal, explained the Commission. In Cyprus, almost 179,000 exchanges and withdrawals for approximately €253 million were made at banks between 1-4 January. In Malta, around 132,000 operations of this nature, involving around €88 million, were made between 1-5 January. Withdrawals at cash dispensers rose to 105,000 in Cyprus by 4 January and 202,000 in Malta up to 6 January. The Commission pointed out that there had only been a few cases of misconduct, with, for example, excessive price hikes for parking costs, cinema tickets and doctors' fees. (A.B.)