Cyprus euro entry threatened
NICOSIA (AFP) – Plans for Cyprus to adopt the euro in January were in danger yesterday after the country’s two largest political parties threatened to vote against implementing legislation. A bill was due to be presented to the House of Representatives yesterday, with a vote set for March 15. But AKEL chief Demetris Christofias said on Wednesday that his party, the largest in the governing coalition, had decided to «vote against» the bill. This comes despite the fact that the government has been strongly pro-euro. AKEL has argued that it wants to delay euro entry by one year because of concerns over the effect it could have on low-income groups. It is worried that a government austerity drive to meet euro convergence criteria will hinder social welfare programs it wants to carry out. Yesterday, the island’s most pro-European party, the opposition DISY, announced that it was reconsidering its stance on the bill. «DISY is having second thoughts in relation to its stance on the government’s proposed euro adoption,» said Deputy President Averof Neophytou. Questioning how it is that the largest party in the euro-positive government could now be threatening a no vote, he said DISY would seek a meeting with President Tassos Papadopoulos to see who can be trusted about the euro. «The government reassures the people that there will be no problems in adopting the euro, while Mr Christofias is absolute that he will be proved right in that people will suffer come January 1, 2008,» said Deputy President Neophytou.
