When looking back at the events of the last year, the third enlargement of the euro area since its creation in 1999 stands out as an important event. Implementing the decision made in 2007, on 1 January 2008 Cyprus and Malta became the 14th and 15th EU Member States to adopt the euro, following Greece in 2001 and Slovenia in 2007, and their national central banks (NCBs) joined the Eurosystem. The good economic performance of Cyprus and Malta, thanks to the implementation of stability-oriented macroeconomic policies over recent years, made it possible for these two countries to introduce the euro as their currency. The currency changeover to the euro proceeded in a smooth and efficient manner in both countries. Looking ahead, the main policy challenge for both countries following their adoption of the euro will be to ensure the conduct of appropriate national economic policies in order to secure a high degree of sustainable convergence.
Another important event in 2007 was the signing by the Heads of State or Government of the EU’s new Treaty in Lisbon on 13 December. This Treaty is now in the process of being ratified by all 27 Member States with a view to it entering into force on 1 January 2009. The ECB welcomes the fact that the new Treaty states that price stability is an objective of the EU, while making Economic and Monetary Union (EMU), with the euro as its currency, an EU objective. The ECB becomes a Union institution and the new Treaty con firms the independence of the ECB, of the ESCB and of the NCBs, as well as the legal personality, regulatory powers and financial independence of the ECB. The ECB considers that the new Treaty con firms the current set-up of EMU and is looking forward to the successful completion of the ratification process. […]
