Slovakia has formally asked the European Commission and the European Central Bank (ECB) to check whether it meets the criteria to be able to adopt the euro on January 1, 2009.
The former communist EU member state is aspiring to become the 16th member of the eurozone, following the accession of Malta and Cyprus at the beginning of this year.
Speaking to the media in Brussels, the European Commissioner for Economic and Monetary Affairs, Joaquin Almunia, said that Slovakia's performance will now be examined in line with the Maastricht criteria, which include strict benchmarks on a number of economic indicators including price stability, health of public finances, interest rates and exchange rates.
On his part, the president of the ECB, Jean-Claude Trichet, said the convergence criteria had to be met in a sustained manner.
At the beginning of May, both the European Commission and the ECB will be publishing convergence reports for all EU member states that have not yet adopted the euro.
Commission sources said the publication of the European Commission's spring economic forecasts, scheduled for the end of this month, will give valuable indications about Slovakia's ability to meet the objectives, particularly in terms of correcting its excessive budget deficit and inflation.
There are serious concerns about whether the country will get the EU's green light, particularly because of growing inflation. Many inside the Commission are of the opinion that the country is not fully prepared yet, fearing that inflation is on the rise even though it is still within the euro entry criteria. Being within the criteria is not enough and sustainability is seen as being very important in the long term. While Slovakia's average inflation over the past 12 months stood at 2.1 per cent, there are indications that it is on the rise.
Slovakia's progress to join the eurozone is being closely monitored by Maltese MEP David Casa who was appointed rapporteur by the European Parliament.
Mr Casa told The Times yesterday that Bratislava is doing its utmost to reach the Maastricht criteria. "However, sustainability is very important and the Slovak government needs to show the Commission and the ECB that it is able to deliver its promises on inflation," he said.
The Nationalist MEP, who was in Bratislava last week, said that Slovakia still has a long way to go particularly to convince everyone that inflation is under control.