Slovakia took another major step towards signing up to the euro Saturday when its currency began trading as a member of the European Exchange Rate Mechanism, which acts as a waiting room for nations preparing to join the eurozone, according to dpa. Long considered by economists as a front-runner to join the common currency, Slovakia's announcement that it was joining the ERM II currency grid could pave the way for the country to merge its currency with the euro by January 1, 2009. "The entry (into the system) really puts us into the waiting room for the euro," Slovakian Finance Minister Ivan Miklos said. The round of economic reforms introduced by Slovakia had meant that the European Union newcomer could join the ERM II ahead of schedule, he said. Slovakia was one of 10 largely Central and Eastern European nations that signed up to the E.U. in May 2004. Brussels announced that Slovakia was joining ERM II late Friday. Countries must be members of the system for at least two years before they can adopt the euro. "The agreement on participation of the Slovak koruna in ERM II is based on a firm commitment by the Slovak authorities to promote wage developments that are kept in line with productivity growth," said the European Commission. As an ERM II member the Slovakian koruna can now fluctuate against the euro by a maximum of 15 per cent over the next two years. Miklos said Saturday in Bratislava that the currency rate had been set at 38.45 Slovakian koruna to one euro.
