Monetary union: euro newcomers unwelcome?

According to a Reuters News Agency report, in an internal letter the European Central Bank (ECB) calls into question the plans for allowing Slovakia to join the monetary union in 2009. The reason is the ECB's doubts that the country's inflation rate, which currently meets all EU criteria, can be kept at its present level on a long-term basis. Jan Machacek is disappointed by the ECB's stance: "Up to now it seemed the Maastricht Criteria had been applied in strict accordance with the stipulations and that a country wouldn't have problems joining the monetary union once it fulfilled the criteria. But a short time ago the ECB refused to allow Lithuania to join - an unexpected and harsh decision because the Baltic country fell short of the inflation criteria by just 0.01 percent. But now Slovakia is facing a much harsher deal: now it's not enough to just fulfil the criteria; the ECB is also beginning to examine whether a country will be able to do so in the long term... This sends a clear message: the 'Easties' are unwelcome in the elite euro club at present."

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