The EU yesterday made Slovenia the 13th euro-zone member, giving
the tiny nation that joined the EU in 2004 a little over five
months to print and mint euro notes and coins to replace its
currency, the tolar, on January 1.
At an EU finance ministers meeting, Cyprus another 2004 newcomer
confirmed that it plans to join the euro-zone in 2008, having
fast-tracked its way to the single currency in recent years.
It has slashed its annual budget deficit to just over 2 percent
of gross domestic product well under the 3 percent ceiling set by
rules underpinning the euro's stability from 6 percent in 2003.
Cyprus intends "to fulfill all the criteria to join the euro in
2008," EU Monetary Affairs Commissioner Joaquin Almunia told a news
conference.
In addition to an annual budget gap of no more than 3 per cent
of GDP, euro membership requires countries to have an inflation
currently not exceeding 2 percent and a public debt capped at 60
percent.
Almunia and Finnish Finance Minister Eero Heinaluoma, whose
country now holds the EU's rotating presidency, hailed the entry
into the euro-zone of a recent newcomer as a historic event.
"The progress Slovenia has made in economic convergence is very
impressive," said Heinaluoma.
At an outdoor ceremony of Slovenian songs and wine, senior EU
and Slovenian officials celebrated the entry of the euro-zone's
newest member. The euro's value was fixed at 239.640 tolars,
officials said.
However, the euro criteria still pose a problem for several
current members of the currency zone. Portugal had its turn in the
spotlight yesterday, when ministers said it was on track to trim
its public debt the euro-zone's largest under 3 percent by 2008 but
must stick to stringent spending reforms.
The EU commissioner also welcomed the new Hungarian government's
"credible and efficient" austerity measures aimed at cutting its
massive budget deficit forecast to be the EU's largest this year at
8 percent but said he could not judge its efforts until October at
the latest.
Slovenia's entry into the euro-zone was given the green light at
a mid-May summit meeting of the 25 EU leaders, making it the first
of the 10 nations that joined the EU in 2004 to also enter the euro
club.
The decision upset Baltic newcomer Lithuania, which also wanted
to join the euro next year but was told to wait because its
inflation is too high.
(China Daily July 12, 2006)
