Cyprus and euro
The Cypriot House of Representatives plenary voted on Thursday in favour of bills for Cyprus' entry into the Eurozone on 1 January 2008.
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The Cypriot House of Representatives plenary voted on Thursday in favour of bills for Cyprus' entry into the Eurozone on 1 January 2008, with 36 votes in favour from the Democratic Rally, the Democratic Party, the European Party, the Social Democrats' Movement EDEK and the Ecologists and Environmentalists' Movement, and 15 against from AKEL.
The amendments tabled by AKEL and EDEK were withdrawn and thus the four bills will be published in the official Gazette of the Republic on Friday.
House President Demetris Christofias said that any amendments would be submitted by the parties aiming at the further strengthening of the institutional framework to protect the people from any rounding off of figures and profiteering.
Also present at the plenary were Minister of Finance Michalis Sarris, Central Bank of Cyprus Governor Christodoulos Christodoulou and head of the European Commission's Representation in Cyprus Themis Themistocleous.
AKEL's Parliamentary Representative Nicos Katsourides said his party did not disagree with joining the EMU but was requesting a postponement for a year because it believed that it was a precautionary policy for granting further social benefits, adding that AKEL trusted the government and the economy, and believed Cyprus could meet the Maastricht criteria, and that furthermore its disagreement did not mean it should withdraw its participation in the government.
President of the Democratic Rally Nicos Anastasiades said that his party would be voting in favour of the bills, since it received convincing explanations from the government that the transition to the Euro would be smooth, adding that DISY was in favour of joining the Eurozone right from the beginning because ''if you want to create conditions of full integration, you must fulfill the obligations you already undertook on signing your accession to the EU.''
On behalf of the Democratic Party, the party's Parliamentary Representative Andreas Angelides said DIKO would contribute to the smooth transition of the whole economic life and action after Cyprus' accession to the Eurozone, adding that ''the huge prospects and the challenge begin today'' and called on everyone ''to be part of this huge project which is our accession to the Euro.''
President of the Social Democrats' Movement EDEK Yiannakis Omirou said ''we must support the effort of the government for the smoothest possible transition to the common European currency,'' adding that ''with accession to the EMU, certain aspects of the Cyprus problem will be reassessed, the inclination will be towards unified economic structures, accession to the EMU will mean the conclusive retraction of the provisions of the Annan plan for separate Central Banks and separate currencies, it will conclusively and irrevocably be one Central Bank, one currency, one single economy.''
Speaking before the House of Representatives Plenary session, President of the European Party Demetris Syllouris said Cyprus has the potential to prove to be the most successful country joining the Eurozone and ''can be an example,'' adding that Cyprus could tackle the negative aspects of the Euro and that by postponing accession ''we will loose our trustworthiness in Europe.''
In his speech, General Secretary of the Ecologists and Environmentalists' Movement George Perdikis said the Ecologists would vote in favour of the bills because they believed Cyprus' accession to the Eurozone is possible, and at the same time the economically weaker groups of the population could be supported, without leaving Cyprus outside the Maastricht indices, noting that there were also political arguments for joining the tough core of the EU concerning the Cyprus problem.
Legal framework for the euro
The four bills that were voted on in the House of Representatives set out the legal framework for the transition to the euro and amend the law on the Central Bank to satisfy EU requirements.They cover:
The conversion into the euro based on a rate to be fixed in July.
The dual display of prices starting from the first day of the month immediately after the fixing of the exchange rate and continuing through to six months after the adoption of the euro.
Exceptions will be made for sums lower that 1 cent of a pound; digital price displays; bus tickets and tickets issued electronically including airline and ferry tickets; parking metres; handwritten receipts. The minister has the right to issue a decree making exemptions in cases where dual display of prices is technically unfeasible or disproportionately expensive.
Issues pertaining to interest rates. References to the pound will be replaced by the euro
Laws and regulations with fines will be given in euros.
The exchange of notes and coins. The Central Bank shall exchange banknotes for 10 years and coins for two years free of charge. Banks and co-op credit societies will offer a similar service free of change for six months after the adoption of the euro – but with a EUR1,000 per person limit per transaction for banknotes and a EUR50 per person per transaction in the case of coins.
All accounts at banks and co-op credit societies will be converted into euros free of charge.
A Euro Observatory will be set up in each district to protect consumers in connection with the introduction of the euro.
The law covers the conversion of companies’ share capital in euros.
Authorities will have to publish fees and levies for services rendered by public authorities within three months of the fixing of the rate.
The pound will continue to be legal tender for one month after the introduction of the euro.
Any person infringing the law faces an administrative fine of up to CYP100,000 before the euro is adopted and 170,000 euro from euro adoption date.
Pound-denominated duty stamps held by the public on the euro adoption date shall not be used to pay duty but may be exchanged for euro-denominated duty stamps of an equivalent total value for one month after the adoption of the single currency.
The same applies for postage stamps that can be exchanged for dual denominated or euro denominated postage stamps of an equivalent total value up to the last day of the year in which the euro was adopted. Pound denominated postage stamps issued before August 2, 1978 may not be exchanged.
The law on the Central Bank eliminates any discrepancies in existing legislation to ensure full compliance with the acquis once Cyprus is a member of the eurozone.
Following a debate in the House Finance Committee authorities undertook to address concerns raised by MPs.
These include:
To inform the Supreme Court so that a decision is taken on whether regulations are needed as regards previous judgements.
Amend the criminal law so as to protect signatories of cheques issued in Cyprus pounds before January 1 and presented for payment afterwards.
Amend the tenant’s protection law to protect tenants from possible eviction due to disagreement on the rent following the final conversion
To make it a criminal offence to impede the entry of an inspector from the Euro Observatory to enter premises and inspect papers.
Officials argued against proposals to extend the dual circulation period of the pound and the euro beyond the current one month. Both the government and the governor of the Central Bank argued that the quicker the national currency is withdrawn, the smoother the transition to the new state of affairs. πηγή London Gr
lornion.blogspot.com
Top stories
* Anti-racism festival begins in Athens
* PAPADOPOULOS – EURO
* Caution urged on climate 'risks'
email this page to a friend print this page email the editor Discuss
The Cypriot House of Representatives plenary voted on Thursday in favour of bills for Cyprus' entry into the Eurozone on 1 January 2008, with 36 votes in favour from the Democratic Rally, the Democratic Party, the European Party, the Social Democrats' Movement EDEK and the Ecologists and Environmentalists' Movement, and 15 against from AKEL.
The amendments tabled by AKEL and EDEK were withdrawn and thus the four bills will be published in the official Gazette of the Republic on Friday.
House President Demetris Christofias said that any amendments would be submitted by the parties aiming at the further strengthening of the institutional framework to protect the people from any rounding off of figures and profiteering.
Also present at the plenary were Minister of Finance Michalis Sarris, Central Bank of Cyprus Governor Christodoulos Christodoulou and head of the European Commission's Representation in Cyprus Themis Themistocleous.
AKEL's Parliamentary Representative Nicos Katsourides said his party did not disagree with joining the EMU but was requesting a postponement for a year because it believed that it was a precautionary policy for granting further social benefits, adding that AKEL trusted the government and the economy, and believed Cyprus could meet the Maastricht criteria, and that furthermore its disagreement did not mean it should withdraw its participation in the government.
President of the Democratic Rally Nicos Anastasiades said that his party would be voting in favour of the bills, since it received convincing explanations from the government that the transition to the Euro would be smooth, adding that DISY was in favour of joining the Eurozone right from the beginning because ''if you want to create conditions of full integration, you must fulfill the obligations you already undertook on signing your accession to the EU.''
On behalf of the Democratic Party, the party's Parliamentary Representative Andreas Angelides said DIKO would contribute to the smooth transition of the whole economic life and action after Cyprus' accession to the Eurozone, adding that ''the huge prospects and the challenge begin today'' and called on everyone ''to be part of this huge project which is our accession to the Euro.''
President of the Social Democrats' Movement EDEK Yiannakis Omirou said ''we must support the effort of the government for the smoothest possible transition to the common European currency,'' adding that ''with accession to the EMU, certain aspects of the Cyprus problem will be reassessed, the inclination will be towards unified economic structures, accession to the EMU will mean the conclusive retraction of the provisions of the Annan plan for separate Central Banks and separate currencies, it will conclusively and irrevocably be one Central Bank, one currency, one single economy.''
Speaking before the House of Representatives Plenary session, President of the European Party Demetris Syllouris said Cyprus has the potential to prove to be the most successful country joining the Eurozone and ''can be an example,'' adding that Cyprus could tackle the negative aspects of the Euro and that by postponing accession ''we will loose our trustworthiness in Europe.''
In his speech, General Secretary of the Ecologists and Environmentalists' Movement George Perdikis said the Ecologists would vote in favour of the bills because they believed Cyprus' accession to the Eurozone is possible, and at the same time the economically weaker groups of the population could be supported, without leaving Cyprus outside the Maastricht indices, noting that there were also political arguments for joining the tough core of the EU concerning the Cyprus problem.
Legal framework for the euro
The four bills that were voted on in the House of Representatives set out the legal framework for the transition to the euro and amend the law on the Central Bank to satisfy EU requirements.They cover:
The conversion into the euro based on a rate to be fixed in July.
The dual display of prices starting from the first day of the month immediately after the fixing of the exchange rate and continuing through to six months after the adoption of the euro.
Exceptions will be made for sums lower that 1 cent of a pound; digital price displays; bus tickets and tickets issued electronically including airline and ferry tickets; parking metres; handwritten receipts. The minister has the right to issue a decree making exemptions in cases where dual display of prices is technically unfeasible or disproportionately expensive.
Issues pertaining to interest rates. References to the pound will be replaced by the euro
Laws and regulations with fines will be given in euros.
The exchange of notes and coins. The Central Bank shall exchange banknotes for 10 years and coins for two years free of charge. Banks and co-op credit societies will offer a similar service free of change for six months after the adoption of the euro – but with a EUR1,000 per person limit per transaction for banknotes and a EUR50 per person per transaction in the case of coins.
All accounts at banks and co-op credit societies will be converted into euros free of charge.
A Euro Observatory will be set up in each district to protect consumers in connection with the introduction of the euro.
The law covers the conversion of companies’ share capital in euros.
Authorities will have to publish fees and levies for services rendered by public authorities within three months of the fixing of the rate.
The pound will continue to be legal tender for one month after the introduction of the euro.
Any person infringing the law faces an administrative fine of up to CYP100,000 before the euro is adopted and 170,000 euro from euro adoption date.
Pound-denominated duty stamps held by the public on the euro adoption date shall not be used to pay duty but may be exchanged for euro-denominated duty stamps of an equivalent total value for one month after the adoption of the single currency.
The same applies for postage stamps that can be exchanged for dual denominated or euro denominated postage stamps of an equivalent total value up to the last day of the year in which the euro was adopted. Pound denominated postage stamps issued before August 2, 1978 may not be exchanged.
The law on the Central Bank eliminates any discrepancies in existing legislation to ensure full compliance with the acquis once Cyprus is a member of the eurozone.
Following a debate in the House Finance Committee authorities undertook to address concerns raised by MPs.
These include:
To inform the Supreme Court so that a decision is taken on whether regulations are needed as regards previous judgements.
Amend the criminal law so as to protect signatories of cheques issued in Cyprus pounds before January 1 and presented for payment afterwards.
Amend the tenant’s protection law to protect tenants from possible eviction due to disagreement on the rent following the final conversion
To make it a criminal offence to impede the entry of an inspector from the Euro Observatory to enter premises and inspect papers.
Officials argued against proposals to extend the dual circulation period of the pound and the euro beyond the current one month. Both the government and the governor of the Central Bank argued that the quicker the national currency is withdrawn, the smoother the transition to the new state of affairs. πηγή London Gr
lornion.blogspot.com
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