Slovenia adopted Europe's single currency, the euro, yesterday, crowning its 15-year transition from a republic in socialist Yugoslavia to the continent's most advanced post-communist economy.
Many feared price hikes after wealthy Slovenia, which lies just south of Austria, became the euro zone's 13th member, in its first expansion since the currency was introduced in 2002.
None of nine other countries that joined the European Union with Slovenia in 2004 are likely to adopt the euro before 2009.
Minister for finance Andrej Bajuk withdrew €100 from a cash machine at Slovenia's largest bank, NLB, in downtown Ljubljana shortly after the midnight switch.
"I am happy, although there is some nostalgia for the tolar. But this is a great opportunity for our country and we can be proud that we belong to this exclusive club," said Bajuk.
But Nina Peskar, a 20-year-old student from Ljubljana, summed up the mixed feelings of many Slovenians. "I look forward to the euro because it will make travel abroad easier but at the same time I'm afraid prices might go up," she said while celebrating on the capital's packed main square, lit by a laser sign beaming: "the euro is coming."
A recent opinion poll showed about 40 per cent of Slovenians fear prices will rise on account of the euro.
Officials said the first hours of euro adoption passed smoothly. Card payment terminals in shops and restaurants were back in business only one hour after the midnight switch and more than 50 banks opened on January 1st and 2nd, both public holidays, to exchange tolars but no queues were reported.
Slovenians can pay in tolars until January 14th, while banks will continue exchanging them free of charge until March 1st.
"I want to congratulate the Slovenian authorities and all the people involved in the changeover operation," European Monetary Affairs Commissioner Joaquin Almunia said in a statement, urging Slovenians to watch out for price rises.
Central Bank governor Mitja Gaspari, who will now become a member of the European Central Bank's governing council, said he expects most of the cash in tolars will be out of circulation in the first week of transition.
Slovenia, whose declaration of independence from the crumbling Yugoslav federation prompted a 10-day war in 1991, is now the wealthiest of the EU's ex-communist newcomers.
- (Reuters)
