Ministers clear Slovak euro entry

Slovakia only joined the European Union four years ago

EU finance ministers have cleared Slovakia's euro entry, which is due to happen on 1 January 2009.

The ministers' decision comes eight weeks after the European Commission and European Central Bank gave their blessings for the demise of the koruna.

Slovakia still needs the approval of EU heads of state at a summit in two weeks before the finance ministers fix the exchange rate in July.

Slovakia would become the 16th nation to adopt the single currency.

Last week, its government revalued the currency upwards by almost 18% to help tackle inflation and improve its conversion rate to the euro.

The concern is that adopting the euro will lead to soaring inflation, as it did when Slovenia adopted the single currency last year.