EU Finance Ministers Set Slovakian-Euro Exchange Rate

Brussels, Belgium (AHN) - European Union Finance Ministers approved on Tuesday the switch of Slovakia to the euro currency by Jan. 1, 2009.

The changeover indicates Slovakia's speedy economic growth rate compared to other European nations as it would be the first Warsaw Pact country that became a member of EU in 2004 to replace its currency, the koruna, with the euro. Slovakia would be the 16th member of the euro zone.

Slovakia got the nod of the EU finance ministers after it reduced in 2007 its budget deficit to 2.2 percent of its gross domestic product, way above the maximum of 3 percent standard of the EU.

Slovak Finance Minister Jan Pociatek told media on Tuesday, "Since we are a very small and open economy, this brings greater stability and allows more investors to come."

Currently, one euro is equivalent to 30.126 koruny, set by the EU finance ministers on Tuesday. Slovakian Prime Minister Robert Fico had sought a higher exchange rate for the koruna to help ease the inflation rate in the country, which has revalued its currency two times in the last 18 months.