Slovakia is on the verge of a momentous economic step forward…

In a recent interview, Economic and Monetary Affairs Commissioner Joaquín Almunia praised Slovakia’s economic convergence, as well as the changeover process in Malta. He commented, “Slovakia has achieved a high degree of sustainable economic convergence and is ready to adopt the euro on 1 January, 2009.

“However, to ensure that the adoption of the euro is a success, Slovakia must pursue its efforts to maintain a low-inflation environment, be more ambitious with regard to budgetary consolidation and strengthen its competitiveness position.

“It must also now speed up its practical preparations to ensure that the changeover takes place smoothly, as it did in Cyprus and Malta in January 2008."

Euro approval imminent

Following Slovakia’s eurozone endorsement, the Commission is to ask European Union finance ministers and other leaders to approve Slovakia's membership bid in June and July, when they are expected to fix an exchange rate between the Slovakian koruna and the euro.

Speculation is that Slovakia will very likely be the last of the new EU12 to take on the currency this decade, as other eastern European states curb their euro plans rather than strain to shape up their public finances.

Of the 10 countries receiving their eurozone convergence reports - Bulgaria, the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Romania, Slovakia and Sweden – only Slovakia was given the green light after it was found to have met all the criteria for euro adoption – inflation, public finances, interest rates and exchange rates.