Cyprus News Agency: News in English, 06-06-21

Cyprus News Agency: News in English Directory - Previous Article - Next Article

From: The Cyprus News Agency at <http://www.cyna.org.cy>

CONTENTS

[01] EU - ÅDP - CYPRUS

[01] EU - ÅDP - CYPRUS

Joaquin Almunia, European Commissioner for Economic and Monetary Affairs, welcomed the Commission`s decision.

``The Cypriot case shows that budgetary consolidation undertaken with resolve can achieve sustainable results,`` Almunia said speaking to Cypriot reporters, encouraging Cyprus ``to pursue this route and achieve its objective of having finances close to balance by the end of the decade given the high risk arising from the costs of an ageing population.``

Cyprus entered the EDP procedure after an ECOFIN decision on July 5 2004, two months after Cyprus` accession to the EU, due to the presence of deficit above 3% of the GDP. Cyprus had a deficit of 6.25% in 2003. The Council recommended a correction below 3% by 2005 in a credible and sustainable manner while ensuring that the rise in the debt ratio was brought to a halt in 2004 and reversed thereafter. This has been achieved.

Almunia described today`s decision as ``very good news,`` since that Cyprus is the first new member state out of the EDP, adding that Cyprus fulfils the criteria for accession to the Euro.

He suggests that the Cypriot government should be particularly cautious in constraining inflation, given the high oil prices internationally.

Cyprus News Agency: News in English Directory - Previous Article - Next Article