Page last updated at 12:44 GMT, Tuesday, 3 June 2008 13:44 UK

Ministers clear Slovak euro entry

Slovakian Finance Minister Jan Pociatek holds up a one euro coin
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.

Print Sponsor

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific