The Economics Committee is in favour of Slovakia's bid to adopt the euro on 1 January 2009. Adopting this position with a large majority, MEPs in the committee also stress that Slovakia should make further efforts to keep its rate of inflation down and continue structural reforms to its economy.

The committee's report, drawn up by David Casa (EPP-ED, MT), agrees with the Commission that Slovakia has met the criteria to join the euro.

Ongoing efforts urged on inflation and structural reform

MEPs in the committee note that the European Central Bank has identified risks concerning the sustainability of the low inflation rate achieved by Slovakia, and urges further fiscal consolidation, with a balanced budget in the medium-term, and for the social partners to keep wage growth in line with productivity growth in order to maintain a low inflation environment. They also call for the structural reforms to the labour, services and product markets to continue and say the government of Slovakia should ensure competition, notably in sensitive sectors such as energy.

Informing the public

The report also calls for a public information campaign to explain the benefits of the single currency ahead of the conversion, and for the necessary steps to be taken to minimise price increases during the changeover period. An observatory should be set up to monitor the prices of a selection of basic goods so as to fight false perceptions about price increases.

Next steps

Parliament as a whole will vote on the report at the 16-19 June plenary session in Strasbourg. The European Council is expected to take a political decision on Slovakia's euro membership at its 19-20 June summit, with the formal legislation being put to the vote at the following meeting of EU finance ministers. Parliament's role in decisions on euro area enlargement is consultative.