Yesterday, the European Commission warned the country of Slovakia that it needs to rein in inflation within the country if they plan to move to the euro next year. Public spending is also high which will need to be brought to better levels if the country plans to move to euro.
Countries may not be able to adopt the euro if their inflation does not meet a figure that is established by the EU. This number is based on the average three lowest inflation euro zone countries.
Slovakia has seen incredible growth. In fact, in 2007, the economy grew by an outstanding 8.8 per cent, the highest in recent history. Growth in Slovakia comes from many sectors. Since it became part of the European Union four years ago, the country has seen outstanding growth in nearly all sectors. The property market here has grown increasingly as new businesses move their operations into the low cost Slovakia.
Additionally, the EU told Slovakia that they need to improve their budget deficits, which have to meet specific guidelines set by the organization. According to the commission, the government needs to establish a prudent fiscal policy to handle these situations quickly.
