Eslovakia becomes eurozone member

Slovakia has become the 16th member of the eurozone - the second former communist country to join the grouping.

The small Alpine nation of Slovenia, formerly part of Yugoslavia, was the first ex-communist country to join the euro in its own right, two years ago. However, the former East Germany - now part of Germany - has been involved in the euro project since the beginning.
The Slovak koruna (crown) will remain in circulation alongside the euro until 16 January. Despite the change, are holding up the last few days to change its currency, and get used to the euro.

Stability hopes
Slovakia sees its adoption of the euro as a shield from the turbulence that has hit currencies in neighbouring ex-Soviet bloc countries.
The koruna has been pegged at a rate of 30.126 to the euro since July, while Poland's zloty has lost 24% against the euro, the Czech koruna 11% and the Hungarian forint 13%, Bloomberg news reports.
A recent poll in Slovakia's Hospodarske Noviny daily showed 58% of respondents in favour of the euro, compared with 43% positive a year ago. Euro "starter packs" have already been distributed in Slovakia and a big campaign has been under way to familiarise the nation of 5.4 million with the new currency.
Slovakia has enjoyed rapid economic growth since joining the European Union in 2004.
But the euro's strength may make life harder for Slovakia's exporters - particularly its big car industry - in the current economic downturn, correspondents say.


Lauree