Holiday Rentals News - Slovakia heading for a 'property boom' when it adopts the Euro in 2009

Slovakia heading for a 'property boom' when it adopts the Euro in 2009

Another member of the European Union (EU) is set to adopt the Euro, as Homes Overseas Online reports. The property portal hones in on the candidacy of Slovakia to employ the common European currency and what this will mean for the country's economy and property market.

Slovakia has reportedly been given the go-ahead to adopt the Euro in January 2009, after the European Central Bank (ECB) found that the country has met all the necessary economic requirements. Joaquín Almunia, EU commissioner for economic and monetary affairs, said: "Slovakia has achieved a high degree of sustainable economic convergence and is ready to adopt the Euro on 1 January 2009."

The planned move should impact beneficially on Slovakia's property market, as Alistair Constance of Mercury FX told Homes Overseas Online: "In the past, when a country has the joined the Euro, the property prices have jumped. Consequently, there should now be a property boom in Slovakia."

Nevertheless, concerns have been raised over inflation in the country. Almunia further commented: "To ensure that the adoption of the Euro is a success, Slovakia must pursue its efforts to maintain a low-inflation environment, be more ambitious with regard to budgetary consolidation and strengthen its competitiveness position."

Slovak Prime Minister Robert Fico spoke proudly of the EU's decision: "We consider the adoption of the Euro to be the continuation of the success story that began with the entry into the European Union." When it replaces the Slovak Koruna (SK) with the Euro, Slovakia will become only the second ex-communist country to satisfy the common European currency's strict criteria, following in the footsteps of Slovenia.

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