Cyprus and Malta won approval from the European Commission today to adopt the euro on 1 January, 2008.
The recommendation from the European Union's executive arm opens the way for the two countries, which joined the EU in May 2004, to increase the ranks of the the shared currency area to 15.
However, while the Commission was ready to open the eurozone's doors to Cyprus and Malta, the European Central Bank (ECB) said that they needed to do more to improve their public accounts in order to be euro-worthy.
Before full eurozone membership is offered, candidates have to meet tough economic targets covering public finances, inflation, exchange and interest rates.
EU Economic and Monetary Affairs Commissioner Joaquin Almunia said that the two countries had "achieved a high degree of economic convergence with the euro area and (are) ready to adopt the euro in January 2008."
The next step will be a rubber-stamp of approval from EU heads of state and government in June followed by a formal decision by finance ministers in July.
