Eurozone welcomes Cyprus and Malta

EU: Euro banknotes and coins have been circulating in Cyprus and Malta since 1 January, at rates of "1 to 0.585274 Cyprus pounds and 0.429300 Maltese lira.

The changeover took place smoothly. By 2 January about "150m had been withdrawn from banks and cash dispensers, and around 40% of people in Malta and Cyprus had only or mostly euro cash in their wallets and purses. Cyprus pounds and Maltese lira can still be used until 31 January, in parallel with the euro.

President Barroso congratulated both countries on their excellent preparations for eurozone membership.

He emphasised that European businesses, citizens and consumers have all benefited from the euro: "The euro is a strong and stable currency. Along with the economic reforms the EU and Member States have undertaken, it is a reason why the European economy is still growing despite some difficult challenges caused by high energy and commodity prices".

Cyprus and Malta have both made economic changes since they joined the EU in 2004, significantly reducing their budget deficit and public debt and meeting the inflation and interest rate criteria for joining the eurozone.

Despite increasing support for the euro in Cyprus and Malta, opinion polls still indicate concerns that the introduction of the new currency could lead to price rises, mainly as a result of traders rounding up their prices when converting them into euros. So far, only a few cases of undue price increases have been reported. Several preventive measures have been put in place: there are fair-pricing schemes in both countries as well as measures to monitor the dual display of prices.

President Barroso and economy and finance commissioner Joaquín Almunia will take part in celebrations marking the introduction of the euro in the Maltese capital Valetta (12 January) and the Cypriot capital Nicosia (18 January).