By Alan Crosby
BRATISLAVA, Oct 30 (Reuters) - As their country speeds toward expected euro adoption in 2009, fears are rising among ordinary Slovaks that the single currency will bring as many disadvantages as benefits.
Once a laggard in post-Communist Europe, roundly criticised for backsliding on democratic and economic reforms, Slovakia is on the edge of becoming the first central European member of the European Union to join the euro zone.
A wave of pro-business reforms at the turn of the century have put the small nation on track to adopt the euro on January 1, 2009, according to a Reuters poll of analysts released on Tuesday. []
But in the buzzing capital of Bratislava, where construction cranes vie with ancient castles and palaces for the attention of locals, many are worried that the euro will come with a price.
"I'm scared to think of what my salary will look like, and what the prices of food and other goods will be after recalculation and rounding," said Tomas Bena, a lawyer.
"But I hope there will be a real outcry about how much we are making compared with our neighbours, and that wages will go up... although I'm not so sure about that."
Slovakia has become a resounding economic success in recent years as a flood of foreign investment -- mainly into the automotive sector -- fuelled exports and drove real economic growth to near 10 percent.
While Poland, the Czech Republic and Hungary have seen hopes of euro adoption in the near future fade, Slovakia has pushed down inflation, budget deficits, state debt and interest rates to levels that all but ensure entry to the euro zone.
Those reforms have come at a price, however, with job layoffs leaving a stubbornly high unemployment rate of 8.3 percent in September.
According to Eurostat, wages in Slovakia remain well below the average in the European Union. The average Slovak currently earns about 600 euros per month, just over one-third of the average wage in neighbouring euro zone member Austria.
Ursula Rakusova, a translator, said euro adoption will make business with her cross-border clients easier, and also eliminate the hassle of converting crowns when she travels to Vienna. But that does little to assuage her overriding concerns.
"I was just thinking the other day how terrible it will be to see my salary is 1,000 euros. We will be like poor relatives compared with older EU members," she said.
"The other thing I think we can expect after the euro, is that everything (prices) will go up."
The government has said it will consider drawing up a "blacklist", similar to one used in Slovenia which adopted the euro at the start of this year, of businesses that are found to be using the change to the euro to gouge customers. This would be published on the internet.
Igor Barat, the government's pointman on the euro adoption process, said a blacklist, along with obliging businesses to display prices in both euros and Slovak crowns for at least 30 days after the euro-crown conversion rate is set, will help calm customer fears.
"Our goal is to ensure that consumers will not be (negatively) affected by the changeover from the crown to the euro," he said.
That is unlikely to deter Patrik, who owns a popular bar in the centre of the ancient capital.
He said that price hikes are inevitable.
"Naturaly, prices will be adjusted, and prices in this sector only move upwards," Patrik, who did not want to give his last name, said.
"If for nothing else, there is the practical reason. You don't want your bartenders to waste time dealing with cents. Maybe some people will complain, but most of our customers will probably not even notice it."
-- additional reporting by Martin Santa
((Reporting by Alan Crosby; prague.newsroom@reuters.com; Reuters Messaging: alan.crosby.reuters.com@reuters.net; +420 224 190 477; Editing by Gerrard Raven))
Keywords: SLOVAKIA EURO/
