Cyprus and Malta: Going for the Euro

Paris, France
September 14, 2007

From one of the sunniest parts of Europe-encouraging news that makes investing here even more attractive. The European Commissioner for Economic and Monetary affairs Joaquin Almunia has declared that Cyprus and Malta are both ready to adopt the euro in January 2008.

According to the Commission, the two countries have fulfilled the necessary conditions for adopting the euro, having reached a considerable degree of sustainable convergence with member states already using the currency. This will bring the euro bloc to 15 member states. The exchange rate is set to be 1 eur 0.585 Cyprus pounds, and 0.429 Maltese lira. The other states using the euro are: Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Austria, Slovenia, and Finland.

The move is expected to boost Cyprus' economy in particular and increase direct foreign investment now that Cyprus allows the setting up of European Public Limited Companies, otherwise known as Societas Europaea (SE), that transcend EU borders. SEs may be moved from one jurisdiction to another without having to transfer assets or take over existing structures.

Best regards,

Maria Savage
International Living's European Consultant