Slovenia- Welcome to the euro-zone!

[THR]

Long live the tolar and RIP. The Slovenian currency, the tolar, is becoming a thing of the past in a matter of 48 hours. Slovenia, easily the most succesful of the new independent Balkan states will join the euro-zone on Jan1. Up until now, a system of dual prices has existed in the country for some time, so there will be little, if any dramatism in the changeover.

Many would wish that if only all the accession countries were like Slovenia. A progressive, liberal, tolerant and, perhaps above all, small. Unfortunately, the situation is not as rosy with the larger accession countries.

Slovenia indeed will join the euro in a couple of days time. The three Baltic states were supposed to join at the same time but that has been delayed a year later. Anyhow, Estonia of the three is clearly the most qualified to join but even they have deemed their inflation-rate too high for the euro-zone. Their next target is 2008. For Latvia and Lithuania it could be later.

As for the Central-European accession states, Hungary`s public debt is skyrocketing to the extent that for them 2015 is an optimistic estimate to join the euro. Almost the same for the Czech Republic.

Another thing is that unlike countries which would desperately want to join there are countries which shun at the idea. Poland has no possibility of joining the euro unless the convergence-criteria is made easier but the Polish leadership is not that keen on the idea of joining. President Kacsynski(or however you spell the name) has called the euro "an experiment" and has said that there should be a referendum whether Poland should join.

The old euro-countries are not too happy with the euro either. In Italy a vast majority detest the euro. In france to a lesser extent but a large number as well. In Germany the euro has been dubbed as "teuro" as the German word for expensive is teuer.

[Libero]

President Kacsynski(or however you spell the name) has called the euro "an experiment"

An experiment? So is Poland.

And yes, if you believe a lot of what's written about the Euro, its soft and perhaps fatal underbelly is Italy. As a sustainable currency, the Euro is still on probation. The lack of common fiscal policy across Europe is no bad thing (especially from Ireland's p.o.v.) but it does undermine the whole Euro project when one major piece of glue - the stability and growth pact - fell apart so quickly. There will be temptation in the future for a major Eurozone country not only to use the currency as a scapegoat but to actually cut and run. Italy are the most likely candidates but it's still only an outside possibility.

Good luck to Slovenia, though from what I can tell it's Italy and Hungary who need all the luck on the go right now.

[FutureTaoiseach]

I think the falling unemployment in Germany - if it persists - will help drive down unemployment further in the Eurozone by generating increased demand for other countries' exports and this will boost public-support for the Euro and make a country pulling-out unlikely. Anyway I suspect the Liga Nord were only pulling a publicity stunt in advance of the Italian elections when they proposed trying to force a referendum via a petition. Otherwise how come we haven't heard anything from them on that in months? I mean they only need to get around 1% of the population to sign the petition and surely that isn't too hard? Clearly it was just a stunt on their part.

[forest]

well done to Slovenia
Welcome to the club
The problem is that yes citizens and governments to a lesser extent do blame the euro for economic troubles the fact is the Euro was introduced into peoples pockets at the worse time possible
In the middle of a global recession however the euro has been a massive success especially outside the EuroZone we are acting as a counter weight to the US Dollar (one of the aims of the currency) and more and more foreign banks are changing their reserves to Euros
The euro has become the second currency of most non EU European states
The benefit has been tremence
If we should just get the bloody UK in we will be unstoppable

Slovenia is joining next week, I believe Cyprus and Malta join in 2008, Slovenia has set 2009 as a deadline and maybe even Bulgaria whose currency is linked to the Euro (effectively putting it into the EMU II)

It is a shame about Hungary, Poland is run by morons who are against the EU (and every one else other than the US) The league of Polish Families did campaign however against joining the EU in the first place.
It is a slow process but we will get there