NICOSIA, CYPRUS — EU newcomers Cyprus and Malta adopted the euro at midnight last night, bringing to 15 the number of countries using the currency.

When the Mediterranean islands scrap the Cyprus pound and Maltese lira, politicians will be among the first to withdraw pastel euro bills from ATMs.

Nine East European countries are waiting to convert.

The euro has risen more than 11 per cent against the U.S. dollar during the year. It reached $1.4599 yesterday, up 79 per cent from its lowest point of 82 cents in 2000.

“We are in a region that could have some geopolitical surprises,” Cyprus Finance Minister Michalis Sarris said.

“Although the pound has been a loyal and faithful servant of the Cyprus economy, we felt that things could happen that could destabilize a small open economy, so it was to your benefit to join the euro zone as soon as possible.”

Only the southern, Greek-speaking part of Cyprus will use the euro. In the north, whose government is recognized only by Turkey, many merchants will accept euros along with the Turkish lira.

Cyprus’s euro coins will be inscribed in Greek and Turkish, with designs that include the mouflon or wild sheep, a national symbol.

Malta’s one- and two-euro coins will bear the Maltese cross.

Combined, the economies of Cyprus and Malta account for less than 0.3 per cent of the euro zone’s gross domestic product. Both easily met the requirements for limiting deficits and inflation, but euro adoption has also brought public skepticism. Read Full Article