Euro entry campaign gathers pace

The information campaign to prepare Cyprus for entry into the euro single currency, scheduled for 1 January 2008, gathered pace with the launching of two exhibitions, one on the history of Cyprus' currency and the other unveiling the winning designs for the “national side” of the euro coins to be introduced when Cyprus makes the switch. In charge of the campaign is the Governor of the Central Bank of Cyprus (CBC), Christodoulos Christodoulou, who on 4 October set out the benefits of euro entry.

In a lecture at the University of Cyprus, Mr Christodoulou said that the introduction of the euro would help to stabilise prices, improve the public finances, lower interest rates and offer incentives for financial expansion, investment and job creation. The benefits of the full operation of the single European market, he continued, would include the elimination of exchange rate fluctuation, a better investment climate, transparency in prices and greater consumer choice. He also stressed that adoption of the euro could be a positive factor in the search for a viable Cyprus settlement.

Called “From the Pound to the Euro”, the first CBC exhibition covers the history of money in Cyprus from independence in 1960, showing the various currency notes and coins that have been in circulation since then as well as coins issued specially for collectors by the CBC, which was created in 1963.

The “Euro Coins Genesis” exhibition tells the story of the competition for the design of the Cypriot “national sides”, showing the winning entries and some of the unsuccessful ones, as well as designs chosen by other new EU member Cypriot designs, which will appear on eight euro coins, are by Tatiana Sotiropoulou, a book illustrator, and Erik Maell, an artist. They feature the Pomos idle (picrolite) representing culture, the mouflon wild sheep representing nature and the ancient ship of Kyrenia representing Cyprusʼ maritime heritage.


CSE starts new era

The Cyprus Stock Exchange (CSE) on 30 October launched a common trading platform with its counterpart in Athens, as the culmination of a three-year strategic plan aiming to attract more overseas investment in CSE-listed companies. CSE chairman Akis Kleanthous said that the tie-up introduced “a completely new market” and marked “the start of a new era”.

First agreed in March 2005, the common platform had originally been scheduled to come into operation on 1 January 2006, but had been delayed by legal and technical complexities. Mr Kleanthous said that some teething problems might still be experienced but expressed confidence that the CSE would quickly adapt to the new rules.

Except for the bond market, CSE-listed shares will be traded in euros, as they are on the Athens bourse. The common platform therefore represents an important early experience of the single European currency in advance of the target date for official entry on 1 January 2008 (see adjoining report).

Dealings on the CSE were suspended for two days in advance of the launch of the common platform. In earlier trading share prices reached a two-year high, with the main index breaking though the 3,000-point barrier on 5 October and ending the month at around 3,460.


Zivania and ouzo get EU recognition

Great enthusiasm was generated in Nicosia by an EU decision on 27 October to designate the Cypriot national alcoholic beverage zivania as a protected product that could only be marketed under that name by producers in Cyprus. Also welcomed was a simultaneous EU decision that Cyprus should have equal exclusive rights with Greece to make and market ouzo, the famous Greek alcoholic drink.

Speaking at a press conference, Agriculture, Natural Resources and Environment Minister Photis Photiou said that the designation of the two drinks as protected products created conditions for better competition and better protection both in the EU and in third countries. “These products”, said Mr Photiou, “relate to our traditions and history, and that is why we are doing what is necessary to have them registered”. Mr Photiou noted that the decision on ouzo was the first time that the EU had given geographical origin protection to two member states for the same product. He expressed gratitude to Greece for its constructive attitude on the issue.

Zivania is thought to have been produced in Cyprus since the island was ruled by the Venetian Republic from 1489 to 1571. It is made from pomace - the residue of grapes pressed for wine making, including pips and stems - mixed with high-quality local dry wines. The pomace/wine mixture is then distilled in a traditional apparatus called a kazani, to produce a colourless alcohol with a characteristic light aroma of raisins. Containing no sugars and having no acidity, zivania typically has an alcohol content of 45 per cent by volume.

Mr Photiou also confirmed that he would shortly appoint a technical committee to expedite the task of securing EU and international patent protection for halloumi cheese as a uniquely Cypriot product, as urged by the House of Representatives in July (see CN 07/2006). Relevant documentation would be submitted to the European Commission in January 2007, said Mr Photiou.