The EU yesterday made Slovenia the 13th euro-zone member, giving the tiny nation that joined the EU in 2004 a little over five months to print and mint euro notes and coins to replace its currency, the tolar, on January 1.

 

At an EU finance ministers meeting, Cyprus another 2004 newcomer confirmed that it plans to join the euro-zone in 2008, having fast-tracked its way to the single currency in recent years.

 

It has slashed its annual budget deficit to just over 2 percent of gross domestic product well under the 3 percent ceiling set by rules underpinning the euro's stability from 6 percent in 2003.

 

Cyprus intends "to fulfill all the criteria to join the euro in 2008," EU Monetary Affairs Commissioner Joaquin Almunia told a news conference.

 

In addition to an annual budget gap of no more than 3 per cent of GDP, euro membership requires countries to have an inflation currently not exceeding 2 percent and a public debt capped at 60 percent.

 

Almunia and Finnish Finance Minister Eero Heinaluoma, whose country now holds the EU's rotating presidency, hailed the entry into the euro-zone of a recent newcomer as a historic event.

 

"The progress Slovenia has made in economic convergence is very impressive," said Heinaluoma.

 

At an outdoor ceremony of Slovenian songs and wine, senior EU and Slovenian officials celebrated the entry of the euro-zone's newest member. The euro's value was fixed at 239.640 tolars, officials said.

 

However, the euro criteria still pose a problem for several current members of the currency zone. Portugal had its turn in the spotlight yesterday, when ministers said it was on track to trim its public debt the euro-zone's largest under 3 percent by 2008 but must stick to stringent spending reforms.

 

The EU commissioner also welcomed the new Hungarian government's "credible and efficient" austerity measures aimed at cutting its massive budget deficit forecast to be the EU's largest this year at 8 percent but said he could not judge its efforts until October at the latest.

 

Slovenia's entry into the euro-zone was given the green light at a mid-May summit meeting of the 25 EU leaders, making it the first of the 10 nations that joined the EU in 2004 to also enter the euro club.

 

The decision upset Baltic newcomer Lithuania, which also wanted to join the euro next year but was told to wait because its inflation is too high.

 

(China Daily July 12, 2006)