Postponement of euro adoption could weaken country’s rating

THE INTERNATIONAL ratings agency Standard&Poor’s warned on June 19 that Slovakia’s rating could weaken if the new cabinet wasted resources and postponed the introduction of the euro. A worse rating would mean a rougher road for the future government in loan negotiations. On June 18, Robert Fico, whose Smer party won the 2006 parliamentary elections, reiterated his committment to the January 2009 date of euro adoption set by the Mikuláš Dzurinda government, but did not rule out changes, the Pravda daily wrote. According to analysts, the euro adoption would be threatened if a Smer-HZDS-SNS ruling coalition were formed. A Smer-KDH-SMK coalition could also pose a risk.

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