President Tassos Papadopoulos described the decision by the European Council meeting in Brussels on 21-22 June to approve the admission of Cyprus to the euro-zone on 1 January 2008 as a “great milestone”. The Government’s formal application to adopt the euro had been submitted in February and had subsequently passed all the scrutiny stages by EU bodies with flying colours.

President Tassos Papadopoulos described the decision by the European Council meeting in Brussels on 21-22 June to approve the admission of Cyprus to the euro-zone on 1 January 2008 as a “great milestone”. The Government’s formal application to adopt the euro had been submitted in February and had subsequently passed all the scrutiny stages by EU bodies with flying colours.

Speaking on his return, the President described the summit’s decision as Cyprus’ greatest success since it joined the EU on 1 May 2004 and as an historic opportunity for the country. Its significance was great, he added, because it confirmed that Cyprus’ efforts to reach the economic levels which would justify membership of the euro-zone had been completed successfully.

At a press conference given in Brussels on 21 July after Cyprus’ application had been approved, President Papadopoulos expressed regret that because of prevailing political conditions it was impossible for the euro to be introduced in the Turkish occupied area, so that the Turkish Cypriots who live there could enjoy its advantages. The European Commission had in May confirmed its opposition to any unilateral move by the occupation regime to introduce the euro.

The key stage in the scrutiny of Cyprus’ application had been passed on 7 June when the EU Council of Economy and Finance Ministers (ECOFIN) gave it the green light, together with the application of Malta. Also important was the European Parliament’s overwhelming approval on 20 June – by 585 votes to 14 - of a report endorsing the application. Pursuant to the summit’s decision, ECOFIN will on 10 July formally ratify Cyprus’ admission to what will become the 15 member euro-zone and fi x the parity of the Cyprus pound against the euro that will apply from 1 January 2008.

As the summit deliberated, the House of Representatives on 21 June unanimously approved amendments to the legislation adopted in March establishing the legal basis for the switch to the euro. They included the addition of three trade union representatives to the seven-member Euro Observatory Commission that will monitor the effects of the new currency on prices. Another amendment specified that dual pricing must be shown on products from September 2007 until September 2008.

President Papadopoulos welcomed the summit’s agreement on a new treaty reforming structures and procedures in the enlarged EU, saying that it would enable EU institutions and national parliaments to function harmoniously. Cyprus had been one of the member-states in support of retaining as much as possible of the previous constitutional treaty rejected by French and Dutch voters in mid-2005.