Brussels, 07/05/2008 (Agence Europe) - On Wednesday 7 May, the European Commission and European Central Bank (ECB) each published their convergence reports on 10 countries' preparations for joining the Euro. This exercise, above all, allowed Slovakia to obtain its entry ticket to the Euro zone as from 1st January. The Council still needs to validate this proposal (EUROPE 9656). Although the country has achieved a good degree of sustainable economic convergence, the Commissioner for economic and monetary affairs, Joaquin Almunia, affirms that it still has to continue making an effort if it wants adoption of the single currency to be a success. According to the Commission, Slovakia, “has to maintain a low inflationary environment, set out more ambitious targets on budgetary discipline and strengthen its competitive position”, as well as begin preparatory practices without delay. The Commission and ECB point out that the nine countries subject to a “derogation” (Bulgaria, Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Romania and Sweden, given that only the United Kingdom and Denmark benefit from opt-outs) have progressed towards the single currency but none of them has yet met all the adoption criteria.
Slovakia, on the other hand, respects all the required criteria: in March, the average rate of annual inflation was 2.2%, a much lower level than the 3.2% reference value agreed (according to the Commission and ECB, the country, however, still has to remain vigilant). The deficit and debt are much lower than the acceptable limits and Slovakia's middle-to-long term rate during the year finishing February 2008 was 4.5% (under the 6.5% reference value) and the Slovak Crown is part of the European Exchange Rate Mechanism (ERM 2) since 28 November 2005. Despite the high rise in exchange rates compared to the central rates, the Commission considers that the basic reasons for this appreciation are healthy and that the Crown has not be the subject of serious tension. Finally, Slovak legislation on monetary affairs is also judged compatible with EU legislation. The Commission's convergence report for 2008 can be found at: http://www.ec.europa.eu/economy_finance/thematic_articles/article12550_en.htm and the ECB's report at: http://www.ecb.europa.eu . (A.B.)