Cyprus fears the eurozone

On January 1st, 2008, Cyprus will be joining the eurozone. This is worrying a number of inhabitants. "A large majority of Cypriots are sceptical regarding the benefits of the single currency. They are right. The matter of most concern is a hike in prices, or rather the rounding off rising prices. If Cyprus today finds itself in 17th position for purchasing power among the 40 European countries [in a study carried out by the GfK institute], it will find itself catapulted to last in line as soon as it adopts the euro. ... Cyprus is going to enter a European price zone with Cypriot buying power. ... The budgetary surplus of 1.5 % can indeed continue to be the pride of the government, along with the very weak unemployment rate, but reality is tough on a day to day basis. And Cypriot morale may well sink to a low as a result."

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