Slovenia joins euro to crown ex-communist reform

Ljubljana, Jan 1: Slovenia adopted Europe's single currency today, crowning its 15-year long transition from a republic in socialist Yugoslavia to the continent's most advanced post-communist economy.

Tiny but prosperous Slovenia, which lies just south of Austria, became the euro zone's 13th member, in the zone's first expansion since the currency was introduced in 2002.

None of nine other countries that joined the European Union with Slovenia in May 2004 are likely to adopt the euro before 2009.

Cash machines across the country stopped working three hours before midnight, credit card terminals were turned off an hour before the New Year and petrol stations closed for at least 15 minutes to allow time for the switch to the new currency.

If transition goes smoothly, most would start operating again within the first hour of New Year.

Central Bank Governor Mitja Gaspari was due to exchange some tolars into euros at the central bank just after midnight while Finance Minister Andrej Bajuk was set to withdraw the first euro money from a cash machine.

Bajuk said on Friday no major problems were expected.

''Over the past months we trained a large number of administrators at all levels so that they know what to do if they encounter problems,'' Bajuk said.

Gaspari said there were no fears the country would run out of euro cash in the first days.

''Banks are well prepared. There are more than 2 billion euros in cash in Slovenia,'' said Gaspari, adding that until now Slovenia had only about half of that amount in tolars in circulation.

But despite the upbeat mood, Bajuk urged citizens not to use cash machines first thing on Monday morning, unless necessary.

''If we all want to use a cash machine at the same time, there is no system in the world that could handle it,'' he said.

In a country hardly known for lavish public spending, the biggest celebration was in the centre of the capital Ljubljana, where the main square was lit by a laser sign beaming: ''The Euro is Coming''.

Otherwise, the New Year festivities went on as usual with live music and fireworks from Ljubljana castle right after midnight.

''Slovenia has been preparing for this for five years. This is an achievement of the whole country and now it is important to maintain what we have achieved,'' said Bajuk.

A opinion poll showed some 40 percent of Slovenians feared prices would be rounded up on account of the euro, despite the government's efforts to prevent that by introducing double pricing.

Bajuk said every Slovenian must watch out for price changes.

''Now it is important to ... keep telling citizens that each one has to accept their role in deciding where and what to buy and how much to pay for an item,'' Bajuk said.

REUTERS

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