Slovakia gets green light to join the euro
By Our Business Correspondent
May 7, 2008
There are many press reports around the world reporting that the European Commission has given Slovakia the green light to adopt the Euro from January 2009. The Council of Finance Ministers will meet in July and are expected to ratify the decision. Seperately, the European Central Bank, ECB, produced their analysis of Slovakia’s readiness but their report, while saying that Slovakia was ready, contained several critical comments.
Mr Joaquin Almunia, the EU Commissioner for Economic and Monetary Affairs said that Slovakia had achieved the necessary convergence, also known as the Maastricht criteria, but he warned that the Slovak government must continue to maintain low inflation and strengthen its competitiveness.
As a result of Slovakia’s economic growth there are, and will continue to be, pressures on inflation due, not least, to wage demands and also due to higher food prices which are affecting most of the world. Inflation in March reached an annualised rate of 3.6% which is a matter of concern.
Of the 10 countries which joined in the big intake on May 1st 2004, Slovenia, Malta and Cyprus have already joined the euro. Now Slovakia will join, leaving behind the 6 other countries such as Poland, the Czech Republic and Hungary. Some of those countries are taking a longer view because the restraints imposed by the need to meet the euro’s convergence criteria.
Many Slovak citizens are concerned about price rises after the euro is adopted; it will be a matter for the government to ensure that any rises are kept within comfortable bounds. But nothing should be allowed to dampen applause for the efforts of Slovakia, its government and its people in coming so far so quickly.
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