Slovakia will join euro

Maybe this article is more about politics, but i want to post it here as in Slovakia everything is revolving about adopting euro in 2009. There are lot of discussions about it and the public opinions differ widely. But the point is that European leaders made their historic decision and Slovakia has been given the green light to become the 16th EU member of the eurozone. This will be another historic landmark in our history after joining the European Union in 2004 and entering the Schengen zone in 2007. Slovakia is now the first of the Visegrad Four countries to pass this last important step on the way to full EU membership. Prime Minister Robert Fico stressed that he sees the EC’s approval as an expression of trust in his government. However, European Commision warns against future risks. The final decision on Slovakia’s adoption of the euro will be made in July. Slovakia needs to keep inflation under control and maintain its competitiveness. The EC recommends a stricter fiscal policy as a remedy to inflation risks. The threat of increased inflation is also due to energy prices, as recent global energy-price increases haven’t yet been reflected fully in consumer prices. Brussels has also drawn attention to Slovakia’s 10-percent unemployment rate – the highest in the EU, with as many as 76 percent of those without jobs being long-term unemployed, unqualified, and thus ill-equipped to find work. The commissioner encouraged other EU member countries on the road to the joint currency to pursue and intensify their efforts as “it is clearly in their long term interest.” The convergence report also assessed the progress that Bulgaria, the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Romania and Sweden have made towards the euro.

 I wonder in what extent the euro will influence the standard of life of the people in aour country. Maybe you could write what kind of experience you had with adopting euro (if it was not  long time ago and you still can remember those times when you paid with another currecy than euro…) or if your country still does not use euro, are the people ther willing to change the old currency for euro…?

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6 thoughts on “Slovakia will join euro

  1. In Germany we have had the EURO since 2002. Of course, the advantage of this is that I don’t have to change the money in most of the Europion Unioun countries and you can compare prices more easier. However, due to the EURO implementation nearly all products get more and more expensive. After 5 years the products’ prices has dobbled or even more. Our government said: No that is not true because we only have a inflation rate of 2.2% and that is not very high compared to other countries. However, 1€ is about 2 Deutsche Mark (German Mark) and thus the products cost the same like before the euro change. The change was especially dificult for the older people because it was hard to them to know what is expensive and what is cheap. Moreover, the first time everyone converted all prices in Deutsche Mark to know if it is expensive or not because everything seems to be so cheap. In the first year the prices were not so bad. However, then the products’ prices increased suddenly. In short, you bought something for the same amount of money but you got less products. In contrast to that, our salaries haven’t had increased. This is still a big problem for many people. In addition to that, some people still convert the Euro to the Deutsche Mark. But if you do that you get crazy because it’s so expensive. For example, a beer in Germany cost about 2€ right now. If you convert into Deutsche Mark it would be 4 Deutsche Mark. I can’t believe that 10 years ago someone would buy a beer for 4Deutsche Mark. That’s unbelievable.

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  2. Also in Slovenia, we have the same problems as Inga described the situation in Germany. In Slovenia, we have euro currency since 2007. We have been very proud of this, because our country was the first, which gets euro curency, in all the new members of EU ( in year 2004 ). But because of the high rate of inflation, everything get so expensive. Especially general goods like food ( milk, bread, meat, food, vegatables…) And every few mounts, the prices were rising. If I compare last 3 years, there were the highest rising of prices for food; so, the most important goods we need it in our life. And especially this affected people from the “middle class” and this is the majority of slovenian population.
    So, our country really have a problem with inflation, especially after we get euro. Besides, Slovenia has the highest rate of inflation in euro area, and this is still one of the biggest actual problem!

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  3. Joining Euro is a very recent topic in my country. Nowadays people fear that it will have more bad than good influence on the economy of Slovakia. Most of the doubts are regarding increasing prices, more expensive products and therefor lower purchasing power of the inhabitants. Is because the wages and salaries in Slovakia are not that high according to the prices of goods. The minimal wage is 8.100 Sk (€ 267) and the average wage in Slovakia is above 20.000 SK (€ 660). By accepting the Euro as our official currency it will have impact mainly on the people from lower ranks.
    Even though I think that accepting Euro has may positive aspects too, like easier comparison on the prices in Slovakia and other European countries, and also no need to change the currency while traveling in the European Union.

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  4. I am happy that I came to Spain only a month after joining EURO in our Slovakia. Now I can learn the prices, the amounts and everything and when I come home I won´t have any problems, I will be able to compare the Spanish with the Slovak prices.. Ok, maybe this comment is not very connected with labour economics.. 😀

    Also I would like to say, that it is really really difficult for old people to adopt to EURO. When my grandpa´s sister received her “EURO calculator” – which was supposed to make her life easier, she didn´t even know what it was – she has never seen even a calculator before!

    We have EURO from January. So in January the 1st I stopped by at a kiosk.. and it took half an hour for a really old shop-assistant to sell me one magazine – she had to call two other women (same age) to help her out with the money..

    But I guess this is natural. The changes are always easier for young part of the society.

    And yes, some prices rose, some didn´t.. but according to our “lovely” prime-minister, who swore us no inflation at all after adopting EURO, I am “SURE” it is and will be as he sad 😉 No problems at all in our happy world..

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  5. I think that EURO was really not that big deal for young people and mainly from capital city, because we live near Austria ..and for me was EURO my currency long before 1st of January 2009
    ..of course it has lot of disadvantages for old people, because of amount of little coins, but i think that sooner or later they´ll get use to it
    ..and what about prices, i don´t think that something is different, it is almost half a year and i didn´t see anything more expensive..luckily 😀

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  6. The discussion of wether or not to join the euro is a constant ongoing subject in the UK there seems to be a divide in the population of wether people agree that we should join or not. Personally i think that now more than ever we should be joining the euro as now the pound has almost the same value as the euro, i think that the main problem is britains long life battle to remain ‘british’ and keep there identitiy but at what cost??

    Reply

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