Cyprus, Malta win green light to adopt euro in 2008

BRUSSELS: Cyprus and Malta won the European Commission's approval on Wednesday to adopt the euro on January 1, 2008, lifting the biggest hurdle to the two Mediterranean islands joining the eurozone.   

The recommendation from the European Union's executive arm opens the way for the two countries, which joined the EU in May 2004, to swell the ranks of the the shared currency club to 15.   

Before the red carpet to eurozone membership is laid out, candidates have had to meet tough economic targets covering public finances, inflation, exchange and interest rates.   

EU Economic and Monetary Affairs Commissioner Joaquin Almunia said that the two countries had "achieved a high degree of economic convergence with the euro area and (are) ready to adopt the euro in January 2008".   

The next step on the path to the eurozone will be a discussion by EU heads of state and government in June on whether they are ready followed by a a formal decision by finance ministers in July.   

It will also be up to the ministers at that time to decide on the definitive rates at which the Cyprus pound and the Maltese lira would be converted into the euro.   

The tiny ex-Yugoslav republic of Slovenia became the thirteenth member of the eurozone in January, when it became the first to adopt the euro of the 10 mostly ex-communist countries that joined in the EU in May 2004.   

After Cyprus and Malta join next January, Slovakia is the next in line for eurozone membership in 2009.