EU finance ministers ushered Slovenia into the eurozone on Tuesday by giving it the final green light for the adoption of the single European currency on 1 January 2007, diplomatic sources said.
Slovenia will enter the eurozone with an exchange rate of 239.64 tolars to the euro, becoming the 13th member of the eurozone and the first of the ten 2004 EU newcomers to adopt the euro.
The confirmation by the finance ministers of the final legal basis - the decision allowing Slovenia to introduce euro as legal tender, and a regulation determining the definitive tolar-euro exchange rate - marks the end of the formal proceedings for the EU.
It is the final step in a long and minutely prescribed process that included vetting by the Commission and the European Central Bank (EBC), both of which confirmed Slovenia's readiness to adopt the euro in reports issued on 16 May.
Although intensive preparations for the euro started over two years ago when Slovenia joined the ERM II exchange rate mechanism, the authorities still have plenty to do.
Most notably, the parliament is set to adopt in October the act on the euro, which will set down the transition procedure in all segments of the economy and public administration, the period of dual pricing and the withdrawal of tolars as legal tender.
The final green light also means that the minting of the Slovenian euro coins (notes are the same throughout the eurozone) can start.
The coins will be minted in Finland, while notes will come from the European System of Central Banks. Slovenian banks are expected to get the first batches of coins on 1 September and notes on 1 December.
One of the key aspects of a smooth transition is the readiness of consumers. Indicative dual pricing has been mandatory since 1 March and double displays of prices will be in place until the end of June 2007.
Aside from the practical aspects, the adoption of the euro will also be the end of Slovenia's monetary independence, as monetary policy will be in the exclusive domain of the European Central Bank (ECB).
However, the Bank of Slovenia will co-shape eurozone monetary policy, as the central bank governor will become a full-fledged member of the ECB's policy-setting governing council. The council comprises six members of the ECB executive board plus the governors from the eurozone countries.
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