Finance Minister presents framework budget to 2009, Flash News Briefs, March 13 - March 19, 2006
Slovenia is aiming to convert to the Euro by January 1, 2007. If indeed it succeeds, this will be the second hurdle of euro-introduction, and it will be interesting to see what happens to the country's inflation rate. Before the Euro was introduced in Holland, a standard beer cost 2 guilders and 75 cents. Straight thereafter, it changed to 1 euro 60 cents. Considering that the conversion rate is 1:2.20371, this was an immediate increase of 28.2 percent. In some cases, parking meters were converted from one guilder to one Euro and most retail outlets began rounding prices up. Officially, euro introduction increased inflation by around half a percent, but in reality, many Hollanders are still trying to recover from the switch.
A road map to euro introduction may indeed be a good idea for Slovakia, as long as it includes a close study of what happens in Slovenia.
20. Mar 2006 at 0:00
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