.bmp)
.bmp)
NICOSIA-The Mediterranean island states of Cyprus and Malta welcomed in the new year on Tuesday with the adoption of the euro, taking the number of countries now using the single European currency to 15.Less than four years after joining the European Union, both nations-among the smallest members of the 27-member bloc-eased themselves gently into the eurozone on the New Year's Day holiday.Cyprus adopted a low-key approach, with President Tassos Papadopoulos making a symbolic withdrawal of euros on Monday from a finance ministry automatic teller machine.Prime Minister Laurence Gonzi on the smaller island of Malta did the same-but his withdrawal was from an ATM at the posh waterfront cruise liner terminal at Valletta's Grand Harbour just after midnight, accompanied by fireworks."This is the achievement of our target," Gonzi said. "We are the smallest state, but we are as proud as the larger states" in the European Union.Papadopoulos called the switch from the Cyprus pound "in essence a change of the way of life, the crown of our European identity, the culmination of a correct fiscal policy."The combined 1.4-million population of Cyprus and Malta takes the number of people in the eurozone to around 320 million.The European Commission ruled in May 2007 that the two had met the strict economic criteria needed to become eurozone members, and set an exchange rate of one euro to 0.585274 Cyprus pounds and 0.4293 Maltese liri.The European Union congratulated both nations, saying the adoption process had gone smoothly."This achievement has become possible thanks to Malta's stability-oriented economic policies," European Commissioner for Economic and Monetary Affairs Joaquin Almunia said, describing it as an "historic event."For Cyprus, European Commission President Jose-Manuel Barroso said the island "has cemented its place at the heart of the EU, increased its economic potential and influence, and made it easier for its businesses to trade and its people to travel."With most businesses in Malta closed on New Year's Day, the euro eased into circulation."I made sure to have enough change in euros so that I could manage on the first day. People seem to have grasped the new coins beforehand," said Marika Mifsud, who runs a small confectionery in Valletta.But in Nicosia one shopkeeper called day one of the euro daunting."My wife and I have been up since 6 am and I still haven't sat down. People are coming in with Cyprus pounds and we have to sit here being mathematicians and converting them back into euros when we give change," grocer Andreas Timotheou told AFP."Others are coming in with loads of Cypriot coins. I hope things don't continue like this for a month, otherwise I will need another holiday."The Cyprus pound will remain circulating during January as it is gradually replaced.Maltese newspapers hailed the changeover, The Times headlining "The EURuro Has Landed" over a picture of the fireworks display. "The year that starts today had its place in history even before it began. Malta has joined the eurozone, earning its place at the table of economic giants, proving it could cure the financial excesses of the past," it said.In divided Cyprus, a recent survey found 70 percent of Greek Cypriots believe eurozone membership will lead to inflation and profiteering.The government has tried to allay such fears, promising to monitor prices and introduce legislation to outlaw price-fixing."I still cannot work out this change. It looks like I got back more than I paid," said Nicosia pensioner Michalakis Avraam. "I hope I end up getting the hang of this."Valletta hopes that adopting the single currency will help transform the economy into a high-tech investment magnet.Similar sentiments rein in Cyprus where analysts said adopting a stronger euro can only be good for the economy as it will attract more foreign investment, stimulate growth and increase stability.The north of the island, which has been occupied by Turkey since 1974, uses the Turkish lira.As in the days of Noah...
