Britain to adopt the euro - on its bases in Cyprus

(NICOSIA) - Euro-sceptic Britain may have doubts over the single European currency but its sovereign military bases on this Mediterranean island will still embrace the euro when Cyprus adopts it from January 1.

The British bases are not officially part of the European Union even though Britain itself joined decades ago. But Dhekelia, Episkopi and RAF Akrotiri -- an area of 99 square miles (255 sq kilometres) -- will soon become euro-savvy.

"We are absolutely ready. A lot of people here have served in Germany, so using the euro will not come as a shock," British forces Cyprus spokesman Captain Nick Ulvert told AFP on Thursday.

"It's good news for Cyprus so we have to mirror the republic's harmonisation with the EU as far as possible, otherwise it would make life unbelievably impossible," he added.

As around 10,000 Cypriots live on bases territory and many also work there, Britain has tried to stick closely to the country's EU-harmonisation since Cyprus joined the 27-member bloc in 2004.

Locals also use beaches, restaurants, shops and cafes on the British bases, so different currencies would be impractical. Goods and services on the bases are currently priced in both Cyprus pounds and euros to help with the switch.

Along with most Cypriots, the 10,000 British service personnel and their dependents stationed on the island are concerned that prices could be rounded up during the change.

But bases law has been changed to reflect the Cyprus republic's tough stance against profiteering come January 1 -- and with some unlikely beneficiaries.

"We have rounded down fixed traffic fines because that (rounding up) would be profiteering and it wouldn't look good," said Ulvert.

"I'm pretty sure profiteering won't happen on the SBA, because it's small and we have an efficient police force who will stamp it out."

Britain retained the two sovereign base areas under the agreement which granted Cyprus its independence from colonial rule in 1960.