Slovakia well placed to adopt euro in 2009 -OECD

...authorities to remain vigilant to contain domestic inflation pressures.

The Organisation for Economic Cooperation and Development (OECD) also said in its economic survey of Slovakia that the government's fiscal policy needs to be prudent after adopting the euro to avoid a "boom and bust" scenario.

Slovakia is looking to become the second post-Communist country in the European Union to adopt the euro after Slovenia, which joined at the start of this year.

"Slovakia is on track to satisfy the criteria for euro adoption in 2009," the OECD report said.

"The authorities will need to remain vigilant to contain domestic inflation pressures given the economy is estimated to be operating above potential in 2007 and that the labour market has tightened rapidly."