Slovenia's Euro Changeover Hailed As Success

by Ulrika Lomas, for LawAndTax-News.com, Brussels

07 May 2007

The European Commission on Friday hailed Slovenia's transition at the beginning of this year to become the 13th Eurozone member as "a clear success".

According to the EC, although the prices of some goods and services increased, overall inflation has remained broadly stable.

Slovenia adopted the euro on the 1st of January 2007. Contrary to the first group of countries that started by fixing irrevocably the conversion rate of their currency into the euro in 1999 (2001 for Greece) and got the euro cash only three years later (one year for Greece), Slovenia went for a 'Big Bang' scenario where the two took place simultaneously.

All EU countries that have yet to adopt the euro and have drawn up a so-called National Changeover Plan also plan for a 'Big Bang' scenario.

The Commission observed that:

"For the other countries waiting to adopt the euro, the experience shows that the 'Big Bang' approach - i.e. irrevocable locking of the exchange rate and simultaneous introduction of the euro banknotes and coins – works and that a two-week dual circulation period is sufficient provided that the changeover is well and timely prepared. In some aspects, e.g. return of legacy cash, Slovenia even performed better than when the euro cash was introduced in 2002, thereby minimising costs and burdens on businesses."

"Slovenia's adoption of the euro was a swift and smooth affair. This once more underlines the importance of early and careful preparations and of timely information and communication on the euro," concluded European Economic and Monetary Affairs Commissioner Joaquin Almunia.

Recommended