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[joe]

Euro zone newcomers may make a splash at ECB

Reuters


Frankfurt: Cyprus and Malta are minnows compared with other European economies, but at least one of their senior policymakers may make a splash at the European Central Bank if the countries join the euro zone next year.

The ECB and European Commission said on Wednesday that the two Mediterranean islands had met the economic criteria for joining the currency bloc. They are also expected to win approval from EU governments to adopt the euro in January.

Together the two economies, with a joint population of less than 1.5 million, will comprise just 0.2 per cent of the euro zone's GDP and so will make next to no difference to its overall inflation or economic growth.

But economists expect at least one of the countries' central bank governors - Athanasios Orphanides of Cyprus - to punch above his weight on the ECB's Governing Council.

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