Brussels, 11/07/2006 (Agence Europe) - Slovenia will indeed be the first Member State from the last EU enlargement to join the euro zone. The Ecofin Council concluded the procedure which allows Ljubljana to adopt the euro from 1st January 2007. Following the approval given by the European Council (see EUROPE 9213) to the European Commission proposal (see EUROPE 9193), there was little doubt about this decision. On Tuesday, the finance ministers from the 25 Member States decided to abrogate the derogation based on Article 122 (2) of the Treaty, granted provisionally to Slovenia (and the other Member States) when they joined the EU, assuming that it meets the convergence criteria defined in the Maastricht Treaty. Slovenia has six months to put the finishing touches to the move to the single currency. In another report, the Commission indicated that, while practical preparations were well advanced, the Slovenian authorities should up the pace in order to guarantee price stability during the switchover to the euro (see EUROPE 9217). Ministers also decided on a fixed and irrevocable conversion rate between the euro and the Slovenian tolar of 239.640 tolars to the euro, amending regulation 2688/98 as a consequence.
Eero Heinäluoma, the Finnish finance minister who is chairing the Ecofin Council, said the progress made by Slovenia was “particularly impressive”. “It will be a success, I'm certain,” said Commissioner Joaquin Almunia, highlighting the “enormous challenge” that this change represents, particularly in terms of sustainability of public finances and the reform of health and retirement systems. The Slovenian finance minister said he was “fully aware of the challenges for the short and medium term” and stressed the support of the Slovenian people for this project. “Yes, we are sure that Slovenia will continue on the road it has chosen,” he said.
On the technical level, 75 tonnes of banknotes will be printed and 1,000 tonnes of coins minted, totalling respective sums of €850 million and €80 million. From September, minister Andrej Bajuk will be invited to the monthly meetings of the Eurogroup, which will now have thirteen members, said Jean-Claude Juncker on Monday evening.