Spectator on facebook

Spectator on facebook

ECB casts doubt on Slovak euro entry

European Central Bank staff have cast doubt on Slovakia's plan to adopt the euro in 2009, saying the fall in its inflation rate may be short-lived, a memo obtained by Reuters shows. Slovakia's inflation outlook will be key in deciding whether it can join the euro zone, ECB staff said in a memo to the International Monetary Fund.

Having an inflation rate below the reference value - the ceiling for countries wanting to join the euro zone - does not guarantee that the entry criterion has been met, said the memo, which is dated May 30.

Slovak annual inflation fell to a record low of 1.5 percent in May, and the annual average is seen at around that level next spring when the country's application to join the common currency the following year will be assessed. This means inflation would be well below the expected threshold for euro zone entry - defined as 1.5 percentage points above the average of the three lowest inflation rates in the EU - which Slovakia forecast to be around 2.7 percent.

Slovak Central Bank Governor Ivan Šramko said he has not been notified of any official concerns from the ECB.

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Top stories

Gilden: Take the negative and make a positive from it Photo

The works of New York native, photographer Bruce Gilden, who has worked for five decades in the streets of the biggest cities, are on exhibit in the Kunsthalle (House of Arts) in Bratislava.

Bruce Gilden: Feast of San Gennero, Little Italy, 1984.

The ongoing struggle for a free and democratic Slovakia

The people of Slovakia deserve the credit for the remarkable progress that this country has made over the past twenty-five years, US ambassador writes.

Illustrative stock photo

Foreigners: Top 10 events in Bratislava Video

Tips for the top 10 events in the capital between November 24 and December 3, plus regular services in different languages, training, temporary exhibitions and highlights of the year.

Christmas Markets Bratislava

Robert Fico has lost the electoral magic he once had Plus

But his party can still bounce back if they do the things that make parties resilient.

Robert Fico claims that Smer won the regional elections because it is the party with the most chairs in regional councils.