26th Aug 2019

Slovakia set to get green light for euro entry

Slovakia is next week to receive the green light to become the 16th member state of the eurozone, according to a draft report seen by EUobserver.

In the report, the European Commission confirms that the country has met all the conditions to switch to the euro on 1 January 2009.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

  • The EU commission is to suggest that Slovakia be admitted to the eurozone (Photo: European Community)

"In its convergence Report, the commission concludes that amongst the assessed member states only Slovakia fulfils the conditions for the adoption of the euro," says the draft document, set to be presented on 7 May.

The convergence report evaluates the economic and fiscal policy development of the EU member states which are not part of the bloc's monetary union. While the UK and Denmark have an exemption from the euro, the remaining countries of the 27-nation EU have a legal obligation to join.

The 5.3- million strong Slovakia officially applied for approval of its euro entry in early April, after several years of adopting concrete measures to meet the planned 2009 entry.

In its draft report, the commission says "the budget deficit in Slovakia has seen a credible and sustainable reduction to below 3 percent of GDP," and its average inflation rate "is well below the reference value, and it is likely to remain below the reference value in the months ahead, albeit with a narrowing margin."

The levels of inflation in Slovakia was previously regarded as the most sensitive area of the Slovak candidacy, with Brussels urging Bratislava until the last minute to make more lasting cuts in the budgetary deficit to prevent future inflation hikes.

"We have said several times to Slovak authorities that the fiscal stance of the Slovak policies is not as ambitious as desirable. Fiscal consolidation should be more ambitious so as to help the authorities fight inflation more successfully," Joaquin Almunia, the EU's economy commissioner said at a press conference on Monday (28 April).

But the draft paper set to be adopted next week confirms that Brussels will assess the country as meeting all the criteria in a sustainable way.

EU finance ministers will react to the commission's recommendation in June. Later that month, EU leaders are expected to rubber-stamp the decision while in July the conversion exchange rate should be adopted by EU finance chiefs.

If it gets the final go-ahead, Slovakia should join the EU as it celebrates the 10th anniversary of the introduction of euro in 11 states in 1999.


Brexit row delays financial products transparency review

A European financial regulatory body set up after the financial crisis is at loggerheads with the European Commission over whether to carry out a transparency review of certain financial products. The reason: Brexit.

Commission defends Mercosur trade deal

EU commissioners defended a far-reaching free trade agreement between the EU and four Latin American countries, against critics who fear it will damage European farmers' livelihoods and the global environment.

EU hesitates to back France over US tariff threat

France has passed a new tax on tech companies that will affect US global giants like Facebook. Donald Trump has threatened retaliatory tariffs over it. The EU commission says it will "coordinate closely with French" on the next steps.

EU banks more vulnerable to shocks than feared

Eurozone banks, such as Deutsche Bank, might be much more vulnerable to a repeat of the 2008 financial crisis than EU "stress-tests" have said, according to a new audit.


Why von der Leyen must put rights at core of business

Ursula von der Leyen's in-tray must include those European executives on trial for systematic workplace harassment, the break-up of European slavery rings, and allegations of European companies' abuse in palm oil, including child labour, land grabs, and deforestation.

Stakeholders' Highlights

  1. UNESDAUNESDA reduces added sugars 11.9% between 2015-2017
  2. International Partnership for Human RightsEU-Uzbekistan Human Rights Dialogue: EU to raise key fundamental rights issues
  3. Nordic Council of MinistersNo evidence that social media are harmful to young people
  4. Nordic Council of MinistersCanada to host the joint Nordic cultural initiative 2021
  5. Vote for the EU Sutainable Energy AwardsCast your vote for your favourite EUSEW Award finalist. You choose the winner of 2019 Citizen’s Award.
  6. Nordic Council of MinistersEducation gets refugees into work
  7. Counter BalanceSign the petition to help reform the EU’s Bank
  8. UNICEFChild rights organisations encourage candidates for EU elections to become Child Rights Champions
  9. UNESDAUNESDA Outlines 2019-2024 Aspirations: Sustainability, Responsibility, Competitiveness
  10. Counter BalanceRecord citizens’ input to EU bank’s consultation calls on EIB to abandon fossil fuels
  11. International Partnership for Human RightsAnnual EU-Turkmenistan Human Rights Dialogue takes place in Ashgabat
  12. Nordic Council of MinistersNew campaign: spot, capture and share Traces of North

Latest News

  1. Western leaders disagree on Russia, Iran, and Brazil
  2. Belgium: Parties clash on Reynders as EU commissioner
  3. Spain heading for yet another general election
  4. EU to discuss Brazil beef ban over Amazon fires
  5. 'Our house is burning,' Macron says on Amazon fires
  6. What happens when trafficking survivors get home
  7. EU states and Russia clash on truth of WW2 pact
  8. EU considers new rules on facial recognition

Join EUobserver

Support quality EU news

Join us