EU newcomers Cyprus and Malta adopted the euro yesterday, bringing to 15 the number of countries using the currency with increasing clout over the slumping US dollar.
The Mediterranean islands, both former British colonies, scrapped the Cyprus pound and Maltese lira at midnight.
The Prime Minister of Malta Lawrence Gonzi had to wait a little before getting his hands on the new currency. An automated teller machine did not work when Gonzi tried to withdraw euros, and he was obliged to use a different ATM.
PHOTO: AP
"We are the smallest member state of the European Union, but we are proud," he said.
Both countries welcomed the euro with outdoor celebrations, including a fireworks display in Malta's rainy capital Valletta.
The euro has risen more than 11 percent against the dollar during the year and nine East European countries are waiting to convert.
The euro's strong exchange rate of US$1.4599 on Monday -- up 79 percent from its lowest point of US$0.82 in 2000 -- has given more pocket power to European tourists in the US, while curtailing the movements and spending of many American tourists and workers abroad.
"We are in a region that could have some geopolitical surprises," Cyprus Finance Minister Michalis Sarris said.
"Although the pound has been a loyal and faithful servant of the Cyprus economy, we felt that things could happen that could destabilize a small open economy, so it was to our benefit to join the euro zone as soon as possible."
Only the southern, Greek-speaking part of Cyprus will use the euro. The government in the north is recognized only by Turkey, but many Turkish Cypriot merchants will also accept euros along with Turkish lira.
Cyprus' euro coins will be inscribed in both Greek and Turkish, with designs that include the mouflon, or wild sheep, a national symbol. Malta's 1 euro and 2 euro coins will bear the Maltese cross.
"We're sorry to say goodbye to our pound but happy to welcome the euro," Cyprus President Tassos Papadopoulos said moments after midnight on the island.
Combined, the economies of Cyprus and Malta account for less than 0.3 percent of the euro zone's gross domestic product. Both easily met the requirements for limiting deficits and inflation, but euro adoption has also brought public skepticism.
A EU poll found 74 percent of Cypriots and 65 percent of Maltese believe the euro will drive prices upward. The September survey also found 44 percent of people in Cyprus and 33 percent in Malta would be sorry to see their national currencies being replaced.
"This makes us complete Europeans," Maltese hotel worker Mark Ferench said as the celebrations started. "This is the culmination of our European Union membership."
The 12 countries that have joined the EU since 2004 are obliged to convert to the euro eventually. Slovenia was the first to meet the targets and joined on Jan. 1 last year. Of the nine remaining countries, only four have linked their currencies to the euro in an exchange rate trading band, a key step toward membership.
Current members of the euro zone include Austria, Belgium, the Netherlands, Finland, France, Germany, Ireland, Italy, Luxembourg, Portugal, Spain, Greece and Slovenia.
New EU members Slovakia, Estonia, Latvia and Lithuania have joined the zone; others that have yet to adopt the euro are Bulgaria, Hungary, the Czech Republic, Poland and Romania.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source