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EURO CHANGEOVER SCHEDULE |
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Slovakia officially enters Eurozone on January 1, 2009 and Euro will become the legal tender in both cash and non-cash circulation. Adoption of Euro will be executed according to the so-called 'Big-Bang' scenario, when the new currency is being introduced without a transition period.
| Euro adoption schedule | |
|---|---|
| Stage 1 - following membership in ERM II | |
| by November 25, 2005 | Participation on ERM II admission procedures with EU bodies |
| Stage 2 - membership in ERM II until the decision on Slovakia's admission to the Euro zone | |
| November 28, 2005 | Admission to ERM II |
| May 2008 | European Commission's and ECB's convergence reports |
| May - June 2008 | Evaluation procedure by European institutions |
| June 2008 | The Council of EU cancels exception |
| July 8, 2008 | The Council of EU determines the SKK/EUR exchange rate |
| Stage 3 - from the decision on Slovakia's admission into the Euro zone to the actual admission | |
| July - December 2008 | Building-up a sufficient supply of Euro banknotes and coins for Slovakia's cash circulation |
| September - December 2008 | NBS and commercial banks create stock of Euro currency |
| December 2008 | Retailers create stock of Euro currency |
| July 2008 - December 2009 | Mandatory dual display of prices |
| until end of December 2008 | Conversion of cash machines, automats and other coin or banknote-operated machines |
| Stage 4 - following the entry into Euro zone | |
| January 2009 | Entry into Euro zone |
| until January 16, 2009 | Dual circulation: exchange of SKK cash currency for EUR and withdrawal of SKK cash from circulation |
| from January 17, 2009 | Exchange of old SKK cash currency for EUR notes and coins in banks and in NBS |
| until June 2010 | Recommended dual display of prices |
Just like every other EU member state, Slovakia must meet four convergence criteria - the so-called Maastricht Criteria - prior to its entry into the Eurozone.
1. Public Finance: One year prior to evaluation, the country's public deficit must not exceed 3 % of GDP. In addition, the total public debt must not exceed 60 % of the country's GDP, or it has to be decreasing.
2. Inflation: Average inflation for the past 12 months (measured according to HCIP) must not exceed the average value in the three EU member states with the best performance in the area of price stability by more than 1.5 %.
3. Long-term interest rate stability: The average market interest rates for long-term government bonds or similar securities must not exceed the average value in the three EU member states with the best performance in the area of price stability by more than 2 %.
4. Exchange rate stability: Slovak koruna (SKK) must participate in the ERM II exchange rate mechanism for two years prior to its evaluation. During this period, Slovakia must not unilaterally devaluate its currency, the currency must not stray outside its agreed fluctuation band, must remain close to its central parity, and there must be no serious tensions during the development of the exchange rate.
