Slovakia to adopt the euro
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News on Slovakia
12 May 2008
Four years after joining the European Union, Slovakia has been given the green light to join the euro in January 2009.
The European Central Bank has found that Slovakia has met all the necessary economic benchmarks, but expressed concern about inflation. EU finance ministers and political leaders will make a final decision on Slovakia’s candidacy in July.
Joaquín Almunia, EU Commissioner for Economic and Monetary Affairs, 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.”
Slovakia will become only the second ex-communist country after Slovenia to pass the euro's strict criteria.
Slovak Prime Minister Robert Fico said: "We consider the adoption of the euro to be the continuation of the success story that began with the entry into the European Union."
Alastair Constance of Mercury FX told Homes Overseas Online: “In the past when a country has joined the euro the property prices have jumped. Consequently, there should now be a property boom in Slovakia.
Editor’s comment
The euro is currently performing better against the sterling than the Slovak Koruna (SKK). This implies that it may become more costly for Brits to buy Slovakian properties in euros.
