Cyprus and Malta got their invitations to enter the Eurozone, a restricted club within the European Union (EU), reserved for countries showing excellent financial macro results. Lithuania, another frontline applicant, for second year in a row, was postponed; it will have to wait until it improves its financial performance, especially in terms of inflation. Next year, Slovakia will also be considered whether it's fit to enter the club. The other post-communist EU countries will have to wait more years in order to qualify. The conditions to be a member of the Eurozone are strict, and the current members seem not in a mood to make them less difficult at any time soon.

Being a Eurozone member is part of the vision of Europe without borders, where people, goods, and services, including financial, are flowing free without national governments' restrictions. Countries that enter the EU make an official pledge to make their financial macro results compatible with the strict Eurozone criteria: low public deficits, low inflation, and low public debts. Only three 'old' EU members, UK, Denmark, and Sweden, can freely decide whether and at what point they would like to join the Eurozone. They however cannot impose specific conditions for joining. The new EU members have not even such limited freedom to choose, they must adhere to these strict conditions and they must join. The question is just when.

From the two countries that were invited to join on January 1, 2008, Cyprus represented more difficult case. A country divided politically (and economically) after the Turkish military invasion of more than 30 year ago, it joined the EU in 2004. It's in fact only the southern territory, ruled by the internationally recognized government that is effectively part of the Union. Therefore, entering the Eurozone will effectively apply only to this southern part of the island. Whether the Euro will become official currency in the northern part will depend on the progress of the reunification. It will also depend on the process of EU enlargement toward Turkey, a country that actually controls the northern part of the island.

Maltese case, compared to those of Cyprus, was much less difficult. For years only purely financial factors hindered the island of becoming a member of the Eurozone. The budget deficit and to a degree the inflation were the only factors that didn't allow Malta to get invitation last year alongside Slovenia. With these problems a matter of past, Malta is now ready to join the Eurozone. The last technicality for both countries, Cyprus and Malta, is determining the irrevocable exchange rate for conversion of their national currencies to the Euro. This technicality will get its go-ahead during the weeks to come.

Cyprus country profile:

• Area: 9,250 sq km (of which 3,355 sq km are in north Cyprus).
• Population: 788,457 (July 2007 est.).
• Population growth rate: 0.5% (2007 est.).
• Life expectancy at birth: 77.98 years.
• GDP per capita: purchasing power parity $23,000 (in north Cyprus $7,135) (2006 est.)
• Languages: Greek, Turkish, and English.
• Ethnic groups: Greek 77%, Turkish 18%, other 5%.
• Main trading partners: different EU countries, Israel.
• Internet users: 300,000 (2005)

Malta country profile:

• Area: 316 sq km
• Population: 401,880 (July 2007 est.).
• Population growth rate: 0.4% (2007 est.).
• Life expectancy at birth: 79.15 years.
• GDP per capita: purchasing power parity $21,000 (2006 est.)
• Ethnic groups: Maltese (descendants of ancient Carthaginians and Phoenicians).
• Languages: Maltese (official) and English (official).
• Internet users: 127,200 (2005).

(Sources: CIA World Factbook 2007, Reuters)

--------------------

See also the directory of companies providing real estate services in, and general real estate information of Cyprus and Malta.