Slowakije hoopt in 2009 de euro in te voeren (en)

Slovakia is hoping to adopt the euro in January 2009, according to a new draft budget presented on Tuesday (17 August).

The draft budget for 2005-2007, which was presented by Slovak Finance Minister Ivan Miklos, cuts the public finance deficit to 3.8 percent of gross domestic product (GDP).

To meet the Maastricht criteria for jointing the euro, public fiscal deficit must be below 3 per cent of GDP.

This hurdle is seen as the most difficult condition to meet for ex-communist states in central Europe wanting to join the euro zone.

If successful, Slovakia could be at least one year earlier in joining the euro zone than its bigger and more developed central European neighbours, Poland, the Czech Republic and Hungary, according to Reuters.

While many euro zone countries struggle with financing the burden of pensions, the Slovak government plans for a raise.

The Slovak draft budget for 2005 includes the cost of a pension system reform, adding some 0.4 percent to the budget deficit next year.

By July of next year, pensions should increase by 8.2 percent, if the new budget is approved when submitted to the Parliament in October, according to Slovensko.com.

Slovak growth is estimated to be 4.5 percent in 2005 - well above the EU average.