By Peter Laca
BRATISLAVA, May 7 (Reuters) - Ulrika Balkova beamed with
pride on Wednesday when she learned she would soon be handling
euros, not crowns, in the bar she manages in Slovakia's capital,
but not all Slovaks were so enthusiastic.
The country of 5.4 million got the green light from the
European Union's executive on Wednesday to adopt the single
currency, thrusting it ahead of neighbours Poland, Hungary and
the Czech Republic in the race to converge with the bloc's
richer members.
An opinion poll showed in April that nearly three quarters
of Slovaks fear the switchover will push up prices and make them
poorer.
But there is also a sense of accomplishment capping a decade
of rapid economic growth and reforms.
"I'm proud, because this is a sign that Slovakia is joining
a group of developed states," said Balkova, 25. "There are
practical advantages too, like we will not have to exchange
money when we go on a holiday to Greece."
Slovakia will be the poorest euro zone member, behind
Portugal, with 70.7 percent of the area's average gross domestic
product per person.
However, the invitation underscores a transformation from
central European laggard under former autocratic leader Vladimir
Meciar in the 1990s to the region's economic growth leader.
Over the last decade, successive governments have attracted
foreign investments worth billions of euros and the mountainous
country has became the world's top car maker per capita.
"It is a significant, historic decision for Slovakia and its
people. We are entering an elite group of nations," Slovak Prime
Minister Robert Fico said after the Commission's decision.
Analysts and the European Central Bank think Bratislava may
have trouble keeping the prices of everyday goods from shooting
up after adoption. They point to Slovenia -- the only other
ex-communist euro zone member -- who met entry criteria before
it joined only to see inflation spike to 6.2 percent in April.
Fico, a popular leftist, is now preparing measures to make
sure his biggest international achievement, does not backfire.
He has threatened to criminalise the act of hiking prices,
and has lashed out at media for the widespread concern that a
feared "euro effect" could drive up prices telling reporters on
Wednesday: "You have made the euro something to fear".
He also indicated his cabinet would negotiate as strong a
convergence rate against the euro as possible -- the market says
it will be somewhere around the recent levels of 32.0 per euro
-- which analysts say will ease price pressure and boost income
levels in euro terms.
But for poorer Slovaks, joining the ranks of Germany, France
and other euro zone states is a cause to worry, not rejoice.
"I am worried because I don't understand it that well," said
Maria Conkova, 38, a cook in Bratislava.
"And, I'm also worried about where prices will go."
(Additional reporting by Martin Santa; Editing by Michael
Winfrey and Matthew Jones)
