The introduction of the euro in Slovakia (2009)

Slovakia has met the entry requirements to join the euro area and will therefore adopt the single currency on 1 January 2009.

ACT

Council Decision of 8 July 2008 in accordance with Article 122(2) of the Treaty on the adoption by Slovakia of the single currency on 1 January 2009.

SUMMARY

This Decision allows Slovakia to adopt the euro on 1 January 2009, considering that the country meets the necessary requirements for entry into the third stage of the Economic and Monetary Union (EMU).

In this respect, the derogation which applies to Slovakia in accordance with Article 4 of the 2003 Act of Accession (PDF) will be abrogated on this date.

The country fulfils the convergence criteria insofar as:

• the legislation, including the statutes of the national central bank, is compatible with Articles 108 and 109 of the Treaty and the Statute of the European System of Central Banks (ESCB);
• the average rate of inflation was 2.2 % in 2008, much lower than the reference value (an average 1.5 % lower than those of the three Member States with the best results in terms of price stability). This trend should remain steady in the medium term;
• the budget deficit has been reduced to less than 3 % of GDP and Decision 2005/182/EC on the existence of an excessive deficit in Slovakia has been abrogated by Decision 2008/562/EC;
• the country has been a member of the European Exchange Rate Mechanism (ERM II) since 28 November 2005. During this two-year period, Slovakia has not devalued the bilateral central rate of its currency against the euro, and the Slovak koruna (SKK) has not been subject to any severe tensions;
• the long-term interest rate in Slovakia is, on average, 4.5 % which is below the reference value (the average rate of the three Member States with the best results in terms of price stability, plus two percentage points - i.e. 6.5 % in 2008).

This Decision is based on convergence reports provided to the Council by the Commission and by the European Central Bank (ECB) (PDF), at Slovakia’s request.

Context

With regard to the Act of Accession, new European Union Member States are in a position to participate in the EMU from their date of accession. They benefit from a derogation under Article 122 of the Treaty until the Council decides, following a proposal from the Commission, to abrogate the derogation for those States meeting the convergence criteria.

See also

For further information, please visit the following websites:

• Eurobarometer: introduction of the euro in Slovakia and in new Member States;
• European Commission Directorate General for Economic and Financial Affairs: the euro.

Last updated: 20.02.2009