Confidence that public support for Cyprus' adoption of the euro would grow as the target date of 1 January 2008 came nearer was expressed by Finance Minister Michalis Sarris on 5 April. He pointed out that a Laiki opinion poll showing that opposition to euro entry had grown sharply to 51 per cent of Cypriots had been conducted before the Government's information campaign was properly underway.

Confidence that public support for Cyprus' adoption of the euro would grow as the target date of 1 January 2008 came nearer was expressed by Finance Minister Michalis Sarris on 5 April. He pointed out that a Laiki opinion poll showing that opposition to euro entry had grown sharply to 51 per cent of Cypriots had been conducted before the Government's information campaign was properly underway.

Speaking to journalists in Nicosia, Mr Sarris said that he expected support for the euro to grow and for the doubts to disappear once Cypriots start using the new currency. He attributed much of the current negative opinion in Cyprus to the experience of Greece, where adoption of the euro in 2001 had triggered substantial price rises. That danger would be averted in Cyprus, he insisted, because the Government's national changeover plan included measures to prevent unjustified consumer price increases.

Mr Sarris confirmed that, subject to Cyprus' euro application being approved by the European Council in June, the parity of the Cyprus pound would be formally fixed against the euro on 10 July. This step would mark the official start of the countdown to the switch at the start of 2008.

Asked how the Government would respond to party pressure for a relaxation of its tight fiscal policy in advance of the February 2008 presidential elections, Mr Sarris stressed that there would be no "pre-election gifts". Instead, the Government would continue its budget deficit reduction strategy, whilst ensuring that social benefits were targeted on those who really needed them.

The current German Presidency of the EU issued a statement on 24 April reaffirming that the decision on Cyprus' application to join the euro-zone would be based exclusively on the economic criteria laid down in the Maastricht Treaty. The statement followed a reported remark by the German Finance Minister, Peer Steinbrueck, that Cyprus' euro accession might have political repercussions and should therefore be considered at a political level.