EU to say May 16 if Cyprus and Malta can join the euro

The European Central Bank is also likely to give its view close to that date, EU Economic and Monetary Affairs Commissioner Joaquin Almunia told reporters.

If both support adding the two nations to the 13-nation euro economy, EU finance ministers will then have to take a final decision in June.

"We will adopt our report on May 16, more or less the same calendar as the ECB. If the assessment is positive in both cases, or one of both cases, we will present the proposal to the European Council (of Ministers)," Almunia said after ministers met for talks.

The Commission and the ECB must judge if the two Mediterranean island nations meet EU standards on inflation, budget deficits and overall government debt.

Malta, Cyprus and eight other nations joined the European Union in May 2004.

For Cyprus, EU entry took place only a month after the southern Greek Cypriot government voted against a United Nations plan that would have called for reunification with the breakaway Turkish-Cypriot state in the north of the island.

Only one other country that joined the EU at the same time _ Slovenia _ has adopted the euro. High inflation in Latvia and Lithuania, which joined the EU at the same time, forced the two Baltic states to delay plans to join the currency zone.

Slovakia is scheduled to join in 2009. Estonia is likely to delay membership beyond 2011 as its growing economy sees inflation surge.

Target dates for the larger recent EU members _ the Czech Republic, Hungary, Poland, Bulgaria and Romania _ are still up in the air.

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