(1888PressRelease)
February 21, 2007 - If successful, the Republic will become the 14th of the EU 27 nations to use the currency and would provide investors with the added incentive to plough their cash into property on the island.
Cyprus' finance minister Michalis Sarris told Reuters: "In response to the application, we expect that the EU and the European Central Bank will evaluate Cyprus in March and April as regards its readiness to join the euro zone," according to reports in the Cyprus Mail. (delete space) Meanwhile, in Brussels, European Commission spokeswoman Amelia Torres said: "We received the request this morning and we are going to examine it."
She added that the EC will compile detailed reports on a number of key economic indicators and will announce the results of these towards the middle of May.
Mr Sarris added that to be successful in its application, Cyprus must show "the same zeal, determination and effectiveness" for fulfilling the necessary European criteria as it had over the last two years.
Cyprus joined the EU back in 2004 but has waited until now to lodge its bid for euro currency because it must conform to the euro zone strict economic conditions before it is admitted.
By the end of 2007, the Cypriot government expects to see a budget deficit of 1.6 per cent, a declining public debt of 60.5 per cent of GDP and predicts that inflation should be below two per cent.
Considering that the UK's inflation rate has only just come down from three per cent to 2.7 per cent, this demonstrates how Cyprus is moving from an emerging market to possessing one of Europe's mature economies, alongside Spain, France and Germany.
Surveys have consistently shown that Brits invest money in real estate abroad where they favour going on holiday. Cyprus is a very popular tourist resort among Brits but its holiday home market has benefited from the spill over from Greece.
Potential investors have preferred the Mediterranean island because of its more solid economy and better return on investment than its Hellenic neighbour.
Currently asking prices are running at around 6.3 per cent per year and capital appreciation has been quoted as rising by 20 per cent.
Joining the euro can only be beneficial to the economy and should increase the island's well-known reputation for lucrative investment.
Prices in southern Cyprus start from around CYP50,000 (£58,000).
