Cyprus Finance Minister Michael Sarris announced that Cyprus submitted a formal application to join the euro, after 2 years, during which the Cyprus pound remained in the vicinity of the value of 1.7086 euros per pound.

The Government sent a request the EU Central Bank head Jean-Claude Trichet, and European Commissioner for monetary policy Zhoakinu Almune. A decision on the application is expected to be adopted at a meeting of finance ministers in Brussels in June this year, which will then be ratified by the heads of governments of EU countries. Since then, the Cyprus pound would be rigidly pegged to the euro.

Earlier this month the Cyprus Council of Ministers decided that Cyprus will join the euro on 1 February 2008, and the President said in response to the demands of trade unions, which delays the accession process would not, and the devaluation of the currency also did not happen: «Of course not, under any circumstances. In the event of a change in course, he can only grow »- the President said. «All indicators show against devaluation» - he added, noting that the budget deficit decreased to 1,5% in 2006.

The recently released draft budget, GDP growth in 2007 is expected in the region of 3,9%, with inflation near 2.5% and the deficit continued to shrink. Debt is slightly higher than «Maastricht» rate of 60%, but by 2008, must fall below the bar. In general, you can summarize that the Cyprus economy is developing very successfully