New kids on the Euro block

Malta and Cyprus: New Kids On The Euro Block, Vidya Ram writes in Forbes.com:

Who says hard work doesn’t pay off? The European Union has given the island states of Cyprus and Malta approval to adopt the euro at the start of next year, giving the two governments the space to loosen their fiscal belts following painful efforts to meet stringent EU fiscal targets.

Finance ministers of the 27 members of the EU voted to allow the two countries to join the euro zone on Jan. 1, 2008, raising the number of countries using the currency to 15. The EU also fixed the euro's rate against their current currencies at 0.5853 Cypriot pounds and 0.4293 Maltese lira. The euro is currently trading at $1.3712, up from $1.3626. Of the 10 countries that joined the European Union in May 2004, so far only Slovenia has adopted the euro after reducing inflation to 1.9%, just below the zone’s target of 2.0%..

..In addition to ensuring that they continue to meet EU targets on inflation, budgets and public deficits, which even some of the zone's vetarans, such as Italy, find a challenge, the countries will also have to help the country and its business fully prepare. Key to the success of Slovenia’s move into the euro zone was a concerted public information campaign by the government, and a dual price scheme while the new currency is being phased in. The measures have helped keep price inflation in check, despite widespread public skepticism.

More about the Euro in Malta here