Slovenia Prepared to Adopt the Euro

At the presentation of the report, the Commissioner for Economic and Monetary Affairs, Joaquín Almunia, stated that this achievement was the result of policies and reforms aimed at stability, and that to ensure the long-term sustainability of public finance, Slovenia should continue to pursue structural reforms, while pension reform is an absolute imperative. Mr Almunia also emphasised the importance of practical preparations for adopting the euro, which are essential for a smooth transition to the new currency. He also mentioned certain measures which needed to be taken, including negotiations with traders and retailers, informing the public about all aspects of Eurozone membership, and the role of consumer organisations.

The positive assessment of the European Commission and the European Central Bank of Slovenia's prospects for entering the Eurozone was also welcomed by political and financial circles in Slovenia. At today's joint press conference held by the Prime Minister, Janez Janša, the Minister of Finance, Andrej Bajuk, and the Governor of the Bank of Slovenia, Mitja Gaspari, the PM stressed that the adoption of the euro would be a historic event for Slovenia which would have many benefits.

The Prime Minister said that Slovenia had received good news and that the adoption of the euro is one of the most important projects for the country. He also said that this would contribute to Slovenia's reputation in the world. He added that the euro would facilitate a more stable macro-economic environment, and simplify transactions between Slovenian companies and their economic partners, and the financial operations of Slovenian citizens.

The PM also stated the country was aware that the euro would bring new responsibilities, as public finance would have to continue to remain healthy. Slovenia does not wish to follow the unfortunate example of some EU members that have breached the provisions of the Stability and Growth Pact. Therefore, Slovenia would not delay the implementation of reforms, while the government would continue to focus on encouraging direct foreign investment.

The finance minister, Andrej Bajuk, was also pleased with the report. He had expected a positive assessment and some advisement. ''These are the facts that Slovenia and Slovenian society will have to face. They are the result of an ageing population and a relatively low birth rate,'' he said. With regard to the irrevocably fixed exchange rate, Mr Bajuk said that a large gap between central parity (which is 239.64 tolars to one euro) and the final rate was not expected because of the stability of the Slovenian economy.

Mr Bajuk said that Slovenia's decision to enter the Eurozone as quickly as possible was extremely risky and required a great deal of political courage. He particularly emphasised the role of his predecessor Dušan Mramor, who headed the ministry at the end of 2004.

The Governor of the Bank of Slovenia, Mitja Gaspari, adjudged the report ''a result of good cooperation in the past'', and expressed the hope that cooperation between the government, the Bank of Slovenia, and social partners, would continue in the future. It was precisely the existence of a broad consensus that gave Slovenia a distinct advantage over other Eurozone candidates, he said.

The Governor also said that the Bank of Slovenia would do everything to facilitate the prompt and qualitative technical adoption of the euro, so that citizens would not regard it as a burden, but as a responsibility.