The European Parliament yesterday endorsed a report penned by Nationalist MEP David Casa recommending Slovakia's bid to join the euro club as from January.
The report, discussed during the plenary of the European Parliament in Strasbourg, got 579 votes in favour, 17 against and 86 abstentions.
Slovakia will be the 16th EU member state to adopt the euro if it is given the final approval by EU finance ministers next month.
Although there is consensus that the former communist country would reach its final objective, there are still some doubts on whether the country is fully prepared, particularly due to its inflation levels. This point was emphasised yesterday by various MEPs.
In their final resolution, MEPs stressed that Slovakia should make further efforts to keep its rate of inflation down and continue structural reforms to its economy.
The European Parliament noted that the European Central Bank has identified risks concerning the sustainability of the low inflation rate achieved by Slovakia and urged further fiscal consolidation, with a balanced budget in the medium-term, and for the social partners to keep wage growth in line with productivity growth in order to maintain a low inflation environment.
MEPs also called for the structural reforms in the labour, services and product markets to continue and said that the government of Slovakia should ensure competition, notably in sensitive sectors such as energy.
Mr Casa's report called for a public information campaign to explain the benefits of the single currency ahead of the conversion and for the necessary steps to be taken to minimise price increases during the changeover period.
Although the European Parliament has only a consultative role on the euro enlargement, its assent is still considered an important political hurdle to overcome.
The European Council meeting later on this week in Brussels is expected to make a political decision on Slovakia's euro membership, with the formal legislation being put to the vote at the following meeting of EU finance ministers, the first under the new French presidency.